Thailand assembles VW cars

Thailand assembles VW cars

BANGKOK (DPA): Volkswagen is poised to sign a contract this month with Thailand's Yontrakit Group to locally assemble VW Passat and Audi A6 models in the kingdom, a news report said Tuesday.

The contract with Yontrakit's YMC General Assembly Plant Company, which currently assembles BMW and Peugeot cars, is scheduled to be signed on April 17, said The Nation newspaper.

Trial production should begin in July this year with full- scale assembly set to start up in 2000, said the newspaper, citing Yontrakit executives.

It is still uncertain whether Volkswagen will establish its own distribution network or enter a joint venture with Yontrakit to target the Thai market.

European rivals for Thailand's luxury car market, such as Daimler-Chrysler and BMW, last year set up their own distribution companies to assert full management control over sales and after- sales services.