VW, Skoda, Audi plan to build common engine plant

Volkswagen, Skoda and Audi are expected to reach a decision by the end of this year as to whether or not they will pursue plans to build a common engine plant at the Volkswagen Group’s Chakan facility in Maharashtra, India. The decision of the three companies will depend on the Maharashtra government’s stand on value added tax (VAT) refunds. Having a common engine plant for the three companies will reduce costs, and if they decide to build the common engine plant, production could start as early as 2014. “Big investments plans are on hold right now, as we await a response from the State Government,” said John Chacko, president and managing director of Volkswagen Group India. (June 17, 2012)