Volkswagen confirms talks on India plant

8th September 2005, Comments 0 comments

8 September 2005, WOLFSBURG, GERMANY - Volkswagen confirmed Wednesday it had expansion plans in India and would meet a government delegation at its Wolfsburg headquarters in Germany soon, but said no decision had been made yet about where in India the plant would be built.

8 September 2005

WOLFSBURG, GERMANY - Volkswagen confirmed Wednesday it had expansion plans in India and would meet a government delegation at its Wolfsburg headquarters in Germany soon, but said no decision had been made yet about where in India the plant would be built.

The plans suffered a setback with the revelation that Volkswagen Group executives sought bribes in India to facilitate the plans.

The spokesman confirmed that the Andhra Pradesh state government on Tuesday had declined to accept a cheque from Volkswagen for 2.4 million dollars, replacing a sum that the firm's former India representative is accused of improperly obtaining.

Andhra Pradesh says it has tracked down nearly half the money it paid to associates of disgraced executive Helmuth Schuster.

The Volkswagen spokesman said talks on an assembly plant in India were continuing and a government delegation was expected soon in Germany, but he did not say when.

With sales sluggish in most of its key markets, Volkswagen, Europe's biggest automotive group by unit sales, is keen to gain a foothold in India's fast-growing car market.

DPA

Subject: German news

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