Volkswagen poised to manufacture “Seat” cars in Algeria

Discussions between “Sovac” Group and German car manufacturer “Volkswagen” are underway for the achievement of an ambitious project for the manufacturing of several types of Volkswagen- labeled cars in Algeria.

“This is the third encounter with the important and active partner on the Algerian market. Volkswagen is keen to forge a reliable partnership for the construction of several types of cars like Seat and other brands,” the Industry and Mines Minister, Mr Abdessalem Bouchouareb told media outlets, following his meeting on Tuesday with the two sides at his ministerial department in Algiers.

“We are open to this partnership because we cannot conceive a mechanical industry without a German partner, which is already present in Algeria in the manufacturing of heavy vehicles,” he said.

The minister expressed hope about the early conclusion of an agreement between the two contracting sides.

“The relevant Companies will pursue the ongoing negotiations. I hope they will produce an agreement shortly,” he argued.

For Mr Bouchouareb, the presence of German car manufacturers in Algeria will be shored up with the sealing of this projected partnership deal.

The requirements to be fulfilled relate notably to the obligation to proceed to the cars’ assembling in Algeria itself and the manufacturing spare parts locally at a rate which is expected to eventually reach 40% of Integration for locally assembled vehicles.

For his part, the representative of the German car manufacturer told the press that “the Algerian market is very attractive and very important for Volkswagen, stating that today, we had the opportunity to discuss with the industry Minister and with our “Sovac” partner about the feasibility of a project for local manufacturing of our vehicle brand”, as he put it.

According to the data he expounded on the occasion, Germany’s Volkswagen is represented in Algeria by more than 80 agents of various brands, employing nearly 2,000 workers.