Volkswagen Caddy and SEAT Ibiza will also be assembled at the new facility in the region of Relizane.
The VW Group has joined forces with SOVAC to form a joint venture in Algeria to kick off local production of several models from next spring. In total, the new assembly facility located 220-km to the west of Algiers is going to produce four different models: VW Golf and Caddy, Skoda Octavia, and the SEAT Ibiza.
The new building is being constructed on a site with an area that spans at 150 hectares in the region of Relizane and the plan is to produce more than 100 cars on a daily basis. The new factory requires an investment of $170 million as well as European training for the employees working in quality, production and logistics. According to Andreas Lauenroth, Head of Foreign Production of the Volkswagen brand:
"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."
VW mentions that in 2015 it sold 30,000 new cars in Algeria through its dealership network consisting of more than 100 showrooms and a total of 1,650 employees.
Getting back to the cars bound to hit the assembly line, the Golf just received a mid-cycle facelift, just like its sister model from Czech Republic, the Skoda Octavia. As for the SEAT Ibiza, the supermini will make the switch next year to a new generation and most likely it will be built from day one at the factory in Algeria. While the three are riding on VW’s flexible MQB platform, the latest Caddy uses a revised PQ35 architecture sourced from its predecessor.