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.
Gallery: 2017 VW Golf facelift
Volkswagen Group and SOVAC to produce vehicles in Algeria
- Local assembly in Relizane from spring of 2017
- Daily production capacity of more than 100 vehicles of the Volkswagen, Volkswagen Commercial Vehicles, SEAT and ŠKODA brands
Today, the Volkswagen Group signed a contract for vehicle assembly in Algeria. In the presence of the Algerian Minister of Industry Abdessellam Bouchouareb, Dr. Josef Baumert, Member of the Volkswagen Commercial Vehicles Board of Management responsible for Production and Logistics, and Andreas Lauenroth, Head of Foreign Production of the Volkswagen brand, signed on behalf of the Volkswagen Group brands a joint venture agreement with Mourad Oulmi, CEO OF SOVAC S.P.A. From the spring of 2017, the joint venture company SOVAC Production S.P.A. is to produce selected Group 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 Baumert on the occasion of the contract signing in Algiers.
"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 Lauenroth.
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. 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.