Ambitious expansion plan from VW

Faced with a slumping market share in Europe, the Europe’s biggest carmaker based in Wolfsburg, Germany, VW is looking to expand its business outside Europe. More than 60 percent of its vehicles are already sold outside of Europe. Basically it is looking for more opportunities in China, Southeast Asia and Mexico. With more than 102 facilities worldwide, VW is looking to locate a manufacturing facility in Indonesia. If it proceeds with its plans, it can serve the ASEAN countries that include Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand, Burma, Cambodia, Laos and Vietnam. It has big plans to become the world’s biggest car maker by 2018.

It is also planning to expand commercial vehicle sales including pickup trucks and vans in the United States. Its overall goal is to sell 800,000 VW brand and 200,000 Audi brand vehicles in the U.S. by 2018. Currently it is pushing sales of its compact Jetta, mid-size Passat and Tiguan, a compact SUV in the U.S.

VW’s Audi is also building a $1.3 billion facility in Mexico. It opened its 100th engine production facility recently in Silao, Mexico at a cost of more than $550 million. More than 77 percent of VW’s production capacity now located outside of Europe.

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