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Volkswagen, Audi & Skoda Engines To Be Manufactured In Same Facility In India

In the recent years Volkswagen has emerged as a major global carmaker. Not only it has some of the finest brands in its hands, but also some of the latest technologies that will help the brand deliver better products in the long run. As we have been knowing for a while, Volkswagen is currently eyeing on top global car manufacturer spot and to it has to put in a lot of effort to reach this position. Going by the claims of Volkswagen, by 2018 it will become the number one car maker and it has already taken an initiative which we are going to tell you about, now. Volkswagen has always focused more on collaboration based working between all the different brands that the it owns and the sole reason behind this strategy is economies of scale. With such a strategy one can achieve better profits at a low average cost per unit and Volkswagen is planning to do something similar soon. volkswagen-polo image – Volkswagen Polo Volkswagen is going for a common engine plant where all engines for its popular sub-brands like Audi and Skoda will be produced under the same roof. The plant is expected to start the production of engines by the year 2014 but the final decision is yet to come. Dr. John Chacko, President and Managing Director of Volkswagen Group India, said This is one of the projects we are working on, and logistically speaking, it will be at Chakan. We need two years before it starts operations. A decision will be made by end of the year,”

Audi S8

image – Audi S8

Mr Michael Perschke, Head at Audi India, said: “We will assemble engines at a group level. It will likely happen at Chakan, but no clear decision on the location has been decided yet.” Once the common engine plant becomes operational we are sure the same will help Volkswagen reduce costs and expand sales volumes thereby putting it in direct competition with established market leaders such as Maruti Suzuki and Hyundai. Skoda Yeti

image – Skoda Yeti

Volkswagen plans to manufacture close to 1000 units a day but as of now the decision depends on Maharashtra Government’s stand on VAT refund issue. At present VW has a small scale engine assembling plant in Aurangabad and is dedicated to premium Volkswagen and Skoda products and Audi’s cars. Many of the petrol and diesel engines are imported from group facilities from South Africa, Czech Republic and Germany. Source – BusinessLine