The Volkswagen Group has signed a contract for vehicle assembly in Algeria in a joint venture with SOVAC S.P.A. Production is slated to begin in the spring of 2017. The joint venture company, SOVAC Production S.P.A. will produce a select line up of VW models.
“The Volkswagen Group opted for participation in SOVAC Production S.P.A as we have co-operated successfully with our sales partner SOVAC for many years. For us, this is a logical step towards increasing vehicle sales in Algeria in the long term,” said Josef Baumert, member of the Volkswagen Commercial Vehicles Board of Management responsible for production and logistics, on the occasion of the contract signing in Algiers.
A new assembly building is being constructed on a site with an area of 150 hectares in the region of Relizane, 220 kilometers to the west of Algiers. From the spring of 2017, SOVAC Production S.P.A. will be successively building up production capacity to more than 100 vehicles per day. The latest Group models Volkswagen Golf, SEAT Ibiza, ŠKODA Octavia and the Caddy from Volkswagen Commercial Vehicles will then be assembled at Relizane, according to the automaker.
“For us, local assembly is an effective way of starting production in Algeria. We will be providing targeted training for local employees in quality, production and logistics at the European production facilities of our brands. This will enable us to reach “made in Europe” quality standards in Algeria,” said Andreas Lauenroth, head of foreign production of the Volkswagen brand.
The Volkswagen Group holds a minority stake in the joint venture. SOVAC has been a sales partner for the Volkswagen, Volkswagen Commercial Vehicles, Audi, SEAT, ŠKODA and Porsche brands since 2001. The dealership network of the Volkswagen Group in Algeria includes over 100 facilities with 1,650 employees. In 2015, the Volkswagen Group delivered 30,000 new vehicles to customers via the importer SOVAC, according to the automaker.