Breaking monopoly: Volkswagen to plant its feet in Pakistan?

[TheNoob]

Surprised they are not there already

List of Volkswagen Group factories - Wikipedia, the free encyclopedia

Volkswagen is pretty much everywhere and they are very successful.

However Volkswagen has had a bit of a bad rep in the USA due to some crappy quality cars in the 1990's. They haven't been able to break into the top 20 model sales since.
Team USA | Page 80

This was just published today
VW exec tackles quality woes

"The VW brand was fourth from the bottom in this year's J.D. Power Initial Quality Study."

Probably afraid of the situation in here....

 

[Rusty]

the big question is, why does pakistan not have their own car brand?

 

[Moon]

the big question is, why does pakistan not have their own car brand?

Pakistan did, it just didn't turn out well......

 

[Rusty]

Pakistan did, it just didn't turn out well......

why?

 

[Audio]

I remember visiting Mexico in 1994ish and 99% of the cars on the road there (mostly taxis) were Volkswagens. I always thought they were the first ones into a market when they see a consumer demand brewing. Not sure how Suzuki and others beat them to Pakistan. I think Volkswagen got into China early.

VW's Mexico plants were the last to produce VW Bug....going back to the 60's i think. The plant in Puebla, Mexico is iirc the largest one outside Germany.
You are correct about VW being early in China....from the 80's onward, recently they've taken up large credits to further expand and are in talks to buy a larger percentage of their FAW/VW joint venture.

why?

Because

Adam Motor Company - Wikipedia, the free encyclopedia

 

[Moon]

why?

The Big Three, that's why.

 

[HAIDER]

aahh remind me my VW Jetta 2.0 Turbo. little beast. Use to pump turbo @ 80 miles/hr/

 

[Dalit]

Bhai, you diversify as much as you want, prices wont come down and quality will always be compromised. They'll feed ruling elite's greed or provide quality service and support to ordinary Pakistanis? I have grown old seeing and experiencing such dramas. There is no hope for ordinary Pakistanis.

Yep, the prices are ridiculous in Pakistan. Only the rich will be able to buy luxury brands in Pakistan. Over here every other Tom, Dick and Harry is driving a Mercedes and BMW.

 

[Kompromat]

Are they opening a dealership in Pakistan?

Production and dealerships.

 

[Viny]

Volkswagen Chakkan plant I will get upgraded after 2 yrs, the machinery that was setup in 2007 will be then moved to either sri lanka or to pakistan, thats not very clear. If this happens, then Pakistan might get one new model sedan and rest will be 2007-2010 versions. Talks are also that they might push old version of Skoda Octavia too.

 

[v9s]

Hahaha...getting excited about an assembly plant!

The harsh truth is that we will get the most basic version of any model to be launched in Pakistan (think older international models). In addition, it's highly likely that the prices will be similar or even more expensive than current offerings from Honda and Toyota.

Unless VW makes a big push in the Pakistani car market (which is highly unlikely), it will become another Chevrolet/Proton/Nissan like player. Also, it will become a "Phail Gaari" thanks to our local ustaads.

 

[chathrapathi]

Hope Pakistan realize the fact that opening trade with India has lot of advantages to it!!!
There is a huge export potential from Pakistan to india...

 

[Edevelop]

German based Volkswagen is planning to step into Pakistan

ISLAMABAD: Volkswagen – the leading German automaker company of Germany and Europe is aiming to step-into Pakistani automobile industry, reported by private media channel.

The spokesperson of Board of Investment said that the German based automaker wants to introduce its brands in Pakistan. According to German Ambassador to Pakistan Dr. Cyrill Nunn, a 14-mnember business delegation of Germany businessmen along with officials of Volkswagen is visiting Pakistan soon. The German Ambassador while giving the details at a press conference declared it a “highly important” visit.

According to Pakistani officials, Volkswagen was aiming to do business in Pakistan and government was also striding to make it happen that European brand also set up a manufacturing plant in Pakistan to break the monopoly of local car assemblers. Chairman Board of Investment Miftah Ismail said to the media, “In upcoming two years, the government will try to introduce at least one European brand – German or Italian.” He also welcomed the German delegation.

Pak Suzuki – owned by Suzuki Motor Corp – is the largest auto assembler in Pakistan having 60% of auto market share.

Currently major international brands in Pakistan are Suzuki, General Motors, Honda, and Nissan Motors. It is worth to note that currently the brand operating in Pakistan are not according to international standard. The models being assembled here are mostly retired models and are lacking international safety requirements.

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

German based Volkswagen is planning to step into Pakistan | The News Teller

 

[airmarshal]

Pakistan auto industry will remain a cartel unless govt changes its auto policy.

Pakistan has been assembling automobiles since early 80s. The policy then was ok as its intention was to gradually manufacture. This never happened. Pakistan still assembles vehicles and quality is certainly very cheap while price is the same as its it is in North America, for example.

VW is going to join this cartel too. If you read the post, it seems it mentions govt has changed policy to allow MKD in addition to CKD. Assemblers in Pakistan are importing CKD kits and just assemble them here. No or little manufacturing.

What VW is going to get is CKD and also MKD. Which means its worse than what it is now. No manufacturing but either completely or partially knocked down kit and then assembling of cars here.

Look at India, Thailand and Turkey for vehicle manufacturing & exporting models. Turkey export of vehicles is $10 billion in last 12 years! We can do it too but will and vision is just not there.

Auto industry is the mother industry of engineering industry of the country. It spawns several technology and engineering concerns. If developed, Pakistan has great potential to become an export hub.

 

[AgNoStiC MuSliM]

Hope Pakistan realize the fact that opening trade with India has lot of advantages to it!!!
There is a huge export potential from Pakistan to india...

How so? Would Volkswagon even consider opening a plant in Pakistan if automotive imports from India were allowed?