June 8, 2007 -- European auto major Volkswagen on Thursday said it will commence production up to 110,000 vehicles annually by fiscal year 2009 at its plant in Chakan near Pune. With an investment of euro 410 million (US$554.1 million), a full production plant with a press shop, body shop, paint shop and assembly lines would be built on the 230-hectare site. All planned activities for the plant were running on schedule, a company statement said.

As an important step to build up its relationship, especially with its Indian partners, Volkswagen on Thursday hosted a suppliers conference in Mumbai, which was attended by around 250 suppliers from across the country and abroad. "Our objective is to establish Volkswagen as a local manufacturer and a long-term business partner in India," said Volkswagen India's President Joerg Mueller. He said a significant share of the materials required would come from local suppliers and the plant would create some 2,500 new jobs.

The company's Executive Director (Procurement) Pierre Bruedgam said, "We will start our sourcing actvities soon to find potential partners for Volkswagen in India with local as well as global persectives."

Source: Asia Pulse
Source: Factiva