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    Default Volkswagen to plant its feet in Pakistan?

    Breaking monopoly: Volkswagen to plant its feet in Pakistan? - The Express Tribune

    Volkswagen to plant its feet in Pakistan? -1584407

    ISLAMABAD:

    The incumbent government has gotten a rare opportunity to break the decades’ old monopoly of local car assemblers as world-renowned auto manufacturer, Volkswagen, is keen to introduce its brands in Pakistan.

    Germany’s biggest and the world’s second largest automobile manufacturer in terms of market share, Volkswagen, wants to do business in Pakistan, said an official of the Board of Investment (BoI).

    A 14-member business delegation of Germany businessmen is visiting Pakistan including representatives of automobile company, Volkswagen, said Dr Cyrill Nunn, German Ambassador to Pakistan on Tuesday. He was addressing a press conference to share details of what he described as a “highly important” visit.

    According to Pakistani officials, Volkswagen was keen to do business and the government also wanted at least one European brand to set up a plant in the country to break the monopoly of local car assemblers. They said the three local assemblers have colluded and resultantly, on average, a locally-assembled car is roughly Rs500,000 expensive.

    In allowing the new manufacturer to set up plants, the government has to amend its existing automobile policy, said Pakistani officials. They added that the government has decided, in principle, to amend the automobile policy and will add medium-knocked down (MKD) units in the definition. The German officials had requested the government to accommodate semi-knocked down and MKD units in the automobile category.

    The Volkswagen is said to be engaged in negotiations with prospective local partners, said Pakistani officials.

    In the next two years, the government will try to introduce at least one European brand – German or Italian – said Miftah Ismail, BoI chairman, while talking to The Express Tribune. Ismail welcomed the German delegation, hoping that it will help strengthen bilateral economic ties.

    “To get such a delegation into Pakistan, you have to persuade them and once they are in Pakistan they realise it’s a huge country,” said Dr Nunn.

    Other areas of interest

    Meanwhile, a multi-billion Euro energy giant, Voith, is also part of the business delegation. The company has won the contract for providing machinery and equipment for Dasu Hydropower Project and is now eying the Diamer-Bhasha Dam. Companies dealing in consumer goods and transportation are also part of the delegation, said the ambassador.

    The delegation will hold meetings with Minister for Commerce, BoI, Chief Minister Punjab, besides meeting the business community leaders in Karachi.

    The visiting delegation will be keen to know the steps the government was taking for economic reforms, reducing energy shortages and investment opportunities in Pakistan, said Dr Nunn.

    Dr Nunn said that Pakistan’s decision to allocate funds for Diamer-Bhasha dam and two Liquefied Natural Gas-fired power plants in the new budget offers business opportunities and German companies will be bidding for these projects.

    In 2014, Pakistan’s exports to Germany went up by 20% on the back of the Generalised System of Preference Plus scheme, said the ambassador. However, Germany’s exports to Pakistan plunged by 3.2% and this is also a reason behind the delegation’s visit, said the ambassador.

    “The volume of bilateral trade, currently standing at €2.1 billion, is far less than the potential and even lower than Germany’s trade with countries like Bangladesh,” said Dr Nunn.

    Published in The Express Tribune, June 10th, 2015.
    YASER

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    Quote Originally Posted by zalamng View Post
    If u have a new plant in your country it is bringing jobs for people who get hired to do that jobs.
    Pakistan salvation is not getting more aid but having the rest of the world coming in and investing into the manufacturing plants and jobs so tons of free people who can't escape and still want to work and take care of their families can get employed!
    Since 1949 this country in the name of democracy or not have been home and fertilized ground for thugs and special interest. And this silver lining is going to continue with a different kind of thugs who are co tailing on shoulders of other opportunist thugs who undo any thing decent and looting get started again from the bottom line from ABC the system is not going to change by just changing the face !
    As long as middle class and educated people at least will start doing their own Ehtisabbbb rather getting to be by standers or active participants in corruption or just getting engaged in just criticizing others for wrong doing and continue them selves being hypocrites and slaves of the same stale and rotten system. No change can ever be anticipated.



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    very true - such business is equal to applying hot fixes to solutions that require a rooting first.

    btw - speaking of the same type of business, anyone remember the renault news of about 8 or 10 years ago, when it was being speculated that it was looking into establishing an assembly line in Pakistan - I remember they were going to be doing it on the gandhara plant in port qasim.

    there are more avenues than auto manufacturing, Pakistan is an agricultural economy, why is not anything done to boost that? zameendar problems maybe?
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    most probably they will launch VW Polo n Vento....maybe VW Up! which is small as suzuki alto n wagon R......for compact sedan they might bring VW Jetta to compete with corolla n civic
    My lugnuts require more torque than your Vtec can put out...

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    do not forget the case of BMW Group collaboration with DEWAN at former Hyundai Port Qasim facility. The [******] former president p**** the whole group, even the Hyundai died in Pakistan of such *****


    Language Please - [MOD - EDIT]
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    Aik zardari sab par bhari. Yamaha, vw, hyundai etc
    RIP

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    Quote Originally Posted by qwertypoiu View Post
    Aik zardari sab par bhari. Yamaha, vw, hyundai etc
    jal gaya man from president house ! QTEPO hazaam kar leya sab dakar bhi nai lee !
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    Quote Originally Posted by salik990 View Post
    most probably they will launch VW Polo n Vento....maybe VW Up! which is small as suzuki alto n wagon R......for compact sedan they might bring VW Jetta to compete with corolla n civic
    there was a VW dealership built in Karachi recently near the EBM causeway, it never launched due to difficulties in pricing/politics/general jack crap that happens in Pakistan.

    I came to know that it was a chinese import venture and the cars would be CKD and some fresh ones as CBU.

    No advancement yet.

    every decade or so, you get a similar story in Pakistan, the interest of Mercedes Benz in 2002 to built diesel engines and export went sour in Pakistan and guess where they are now setting up to build MB diesels - in USA, its a darn shame.

    Establishing new business in Pakistan from established foreign interests is like shooting yourself in the foot, Firstly you need to negotiate with govt officials that never passed secondary school, then deal with even further illiterate bodies/groups that seem to negotiate at thug level, Then deal with the fustercluck of political unevenness in Pakistan that causes working staff not to show up at work, then with energy crises to run the facility.

    I mean why should any manufacturing level enterprise ever look to invest?
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    This seems to be good news for Pakistan automobile industry. I hope this works out for Pakistan. Volkswagen is big, very big. It will change the way the automobile industry functions in Pakistan. I am am a little sad after reading some negative comments on the thread but I cannot really blame the posters. We do the same here in India when we know the politicians are looting stuff. This is going to be a long walk for VW and hopefully it will work out in the end. VW for sure will be looking to export cars from this plant in Pakistan as the initial volumes will not be enough to justify full fledged plant. And they will start by importing CKD and CKD kits and assembling them in the plant.

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    Quote Originally Posted by yusha78 View Post
    This seems to be good news for Pakistan automobile industry. I hope this works out for Pakistan. Volkswagen is big, very big. It will change the way the automobile industry functions in Pakistan. I am am a little sad after reading some negative comments on the thread but I cannot really blame the posters. We do the same here in India when we know the politicians are looting stuff. This is going to be a long walk for VW and hopefully it will work out in the end. VW for sure will be looking to export cars from this plant in Pakistan as the initial volumes will not be enough to justify full fledged plant. And they will start by importing CKD and CKD kits and assembling them in the plant.

    The 3 already here were originally setup to build and export built up cars. They cannot even keep up with a paltry few thousand annually even after decades, no measureable exports have been seen. How can you expect VW to magically export cars from Pakistan when they have a huge facility already in china.

    about a decade ago - Renault was also keen on such but it was closed cold.
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    Quote Originally Posted by Xulfiqar View Post
    The 3 already here were originally setup to build and export built up cars. They cannot even keep up with a paltry few thousand annually even after decades, no measureable exports have been seen. How can you expect VW to magically export cars from Pakistan when they have a huge facility already in china.

    about a decade ago - Renault was also keen on such but it was closed cold.
    Understood your point. VW also has factories in India and exports from here also. There might be scope of exports from Pakistan. Lets see. Let them take the first steps of getting the Govt on their side, acquiring all permissions, getting the land etc. Abhi Dilli door hain. A very famous saying in India and very apt for this scenario.

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    What's the scene now ?
    Would love to see VW Golf GTD running on Pakistani roads like 2Ds.

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    Quote Originally Posted by Thinking View Post
    great news for pakistan, if it works out.

    VW golf would surely nail every road car that has ever been manufactured in pakistan.
    agreed love the golf, it is like a small bullet i would rather buy golf then the stupid 26 lac civic or grande

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    the paper trail is stretching way too far..........nothing from PDM Volkswagen in Pakistan before 2021
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    Quote Originally Posted by capsat View Post
    the paper trail is stretching way too far..........nothing from PDM Volkswagen in Pakistan before 2021
    phir aa gaye VW bhi
    Let the good times roll

  15. 09-07-2016, 07:20 PM

    PakWheeler

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    not related to the thread. Not needed

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    Status of VW?
    What keeps me going is goals.

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    There is a rumor so kindly don't bash me on this, last time the negotiations broke off because Shariff's wanted the plant to be established in vicinity of Raiwind to create more jobs and secure vote bank while the company insisted on establishing a plant near Port Qasim because of logistics involved. Don't know what's going to happen this time but yes VW have potential and lineup to give these local hadharam's a run for their money
    Lost in /dev/null

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    @baqai your information is correct the 24 acres land allocated [ in PQ - KEPZ Duty Free Zone ] to German Auto Industry Investment through the German Commercial attache at Karachi consulate in Musharraf regime for Mercedes / BMW JV [ to assemble Mercedes diesel engines & low end sedans 1.6 & 1.8 capacity by BMW ] is now available to Volkswagen. While the Punjab Govt through BOI is using all possible pressure over Volkswagen to set up plant in 25 km radius of Punjab capital.

    BMW Cars / Mercedes Diesel engine group pulled out from PK PQ plant investment after Musharraf regime, due to AZ extortion group now it seems Volkswagen will pull out too

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    oh thanks for the info, i only knew about the honda bit
    Lost in /dev/null

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    hmm - lets back up a bit.

    when our local Pakistani bhai go to other countries - why do they ALWAYS flock to toyota and honda dealerships and not volkswagen?
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    Quote Originally Posted by Xulfiqar View Post
    hmm - lets back up a bit.

    when our local Pakistani bhai go to other countries - why do they ALWAYS flock to toyota and honda dealerships and not volkswagen?
    They are different honda and toyota, Pakistani ones are way behind. Aur Volkswagen golf and jetta are pretty good imo.

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    Quote Originally Posted by ahmadbilalchaudary View Post
    They are different honda and toyota, Pakistani ones are way behind. Aur Volkswagen golf and jetta are pretty good imo.

    Sent from my ALE-L21 using PW Forums mobile app

    still doesnt answer my question - why does every urdu speaking person arriving in USA go to the toyota and honda showroom and never stop at the "foxy" showroom to buy their new car?
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