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Home arrow News arrow Auto component arrow Volkswagen Chakan facility vendor park to host VW's German suppliers
Volkswagen Chakan facility vendor park to host VW's German suppliers Print E-mail
Written by Ganesh   
Friday, 23 May 2008
Pune: To ensure quicker delivery of different auto parts to the plant, Volkswagen has decided to invite their auto component manufacturers to set up units in its land around the Chakan  facility. This will help the company to save transportation costs and VW will be able to source the same quality of components procured and used in its vehicles sold in overseas markets.

construction: Volkswagen plant in the Chakan industrial park near PuneThomas Dahlem, director, manufacturing engineering, Volkswagen India, said that they were in the final process of selecting equipment manufacturers who would supply components to the Chakan plant. The selected companies will be allotted plots within the VW 230 hectare complex to set up facilities to manufacture components. Dahlem also mentioned that the company had plans to link the Chakan facility to the nearby railway network and were in talks with the government to lay lines to connect the plant to the network.

The company has also started work on the vendor park that is coming up at its Chakan facility. One third of the land, 575 acres, is being set aside for the park.

The new Volkswagen plant in the Chakan industrial park near Pune will commence production in 2009 with a capacity of upto 110,000 vehicles a year. It includes a full production plant with a press shop, body shop, paint shop and assembly lines to be built on the 230 hectare site. All planned activities for the production plant are running on schedule. The ground is currently being prepared for construction.

Volkswagen, Europe’s biggest vehicle manufacturer, had earlier announced that it is going to raise its investment in its Chakan facility (Pune) from 410 million euros (Rs 2,400 crore) to 580 million euros (Rs 3,500 crore) to speed up the completion of the plant and roll out the first 15,000 units of Fabia one year earlier than originally planned.

The production will start one year earlier than initially planned and will take off with the Skoda Fabia, followed by a Polo based model from 2010, which is currently under development.

Calling this move ‘the biggest investment by a German company’ Jorg Mueller, president and MD, Volkswagen Group Sales India Private Limited said that the company will start production in the first half of 2009.

The company’s new plant at Chakan is being built on 140 hectares of their 230 hectare land and will consist of essential infrastructure such as a press, body, and paint shop with an installed capacity of 1,10,000 units per year. The installation of the paint shop is already underway and Mueller said the plant is ahead of schedule.

The facility will produce cars such as the recently launched luxury sedan Passat and yet to be launched models like mid-sized Jetta, sports utility vehicle Touareg, small cars Polo/Golf and UP in addition to its regular models. Keeping in mind the nature of the Indian auto market, the vehicles from the plant will come in both diesel and petrol versions. The plant will also produce cars for the group’s Skoda and Audi brands.

Skoda’s independent plant at Aurangabad currently produces the Laura, Fabia, Octavia, Audi's A6 as well as VW's Passat.

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