Volkswagen still mulling Taiwan factory plan

The car manufacturer will definitely make some investment in Taiwan but is undecided on its scale because finished automobiles were not included on the list of items that would receive preferential tariff treatment under the terms of a trade pact between Taiwan and China, the MOEA said.

Volkswagen's decision will be based on whether or not consideration is given to adding finished automobiles to the list in subsequent cross-strait negotiations, the ministry said.

The MOEA said the company is expected to initially outsource some of its production to Taiwanese manufacturers and will decide later on the factory project. Its main decision has to do with the scale and format of its investment in Taiwan, the MOEA added.

In the lead-up to the June signing of the economic cooperation framework agreement (ECFA) between Taiwan and China, Volkswagen was considering investing more than NT$1 billion to set up a manufacturing plant in Taiwan.

However, when the finished automobiles were omitted from the ECFA's preferential tariff list, the company reportedly changed its plans.

Volkswagen, the maker of such brands as Audi, Lamborghini and Bentley, is now exploring a more flexible strategy for investing in Taiwan, the MOEA said.

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