German carmaker Volkswagen reluctant to invest in Algeria

The German group car maker « Volkswagen » has started official contacts with top Moroccan officials with the view to erecting an assembly plant in the North African country, after failing to reach an accord with the Algerian authorities through its small and medium- sized ministry, since 2010.

• A source from the Algerian ministry has revealed to Echouorouk that the German party has proposed to its Algerian counterpart to start with the fabrication of 70 thousand cars dedicated for the domestic market, as a first step, then 100 thousand cars per year during the second phase.

• The third stage of the project will consist in developing and expanding the production process with the view to exporting cars to the African and Arab markets, with the integration of the Algerian operators in the process at a level of 40%, the source added.

• Volkswagen, has one assembly plant based in South Africa for the time being, but the German car maker ambitions to penetrate the North African, Sub- Saharan and the Arab countries through its Algerian factory, on account of its strategic geographical situation.

• In the draft project forwarded by the German carmaker to the Algerian authorities, it was to planned to make two types of “ Polo” brand then, move to other types in the second phase.

• A reliable source has indicated that the German operator has expressed its intent to invest in Algeria well before the Qatari businessmen and contacted the Algerian officials through the relevant ministry.