The Group Volkswagen has just of reach to a agreement with the company SOVAC. This company is responsible for several years of managing the giant German exports to the African country, as well as other countries and markets. The agreement between the two is that some of the brands of the Volkswagen Group assembled there their vehicles to market Algerian, which apparently is a more profitable maneuver economically than the fact of producing them in Europe and exported to Algeria.
Do not think that it is bad news for the Spanish industry. It is cheaper to build a factory there and sell the products to the local market that export them, in fact, the number of units imported from Algeria has dropped significantly in recent years. This strategy should lead to a greater number of sales and, therefore, should benefit us in the sense of that good part of the spare parts are manufactured in Europe.
On the other hand, the sector automotive in Algeria is growing raising their numbers of sales and, above all, a production local much greater as mentioned above. If the trend is maintained, major would be spare parts numbers that charge to Europe and, in theory, higher revenues in the old continent.
Volkswagen has asserted that them will facilitate training specific for them employees local with regard to quality, production and logistics of the marks is refers; what you will help to achieve a quality in Algeria similar to the European.
The plant already is in phase of construction. The area dedicated to the factory has an area of 150 hectares and is located in Relizane, about 220 kilometers west of Algiers. Expected that it is running during the next spring and that is also capable of producing 100 units daily. Those models that is there is will produce for the market local will be them Seat Ibiza, Skoda Octavia and Volkswagen Caddy, to which nobody has ruled out that is could add more models.