Volkswagen fails in Algeria?
According to last researches in Algeria, the cars which produced domestically are more expensive than the imported cars and this is while the Volkswagen is going to launch a new plant in this country.
Khodrocar – After the Hyundai factory pictures have been released, Algeria’s government found out that the reason for car price increase is that the domestic factories assemble the imported kits.
Actually, as soon as factories changed their approach from production to external components assembly, the vehicle prices notably increased.
In July 27th, after Hyundai and Renault, Volkswagen launched its assembly plant in Relizane, Algeria, but it wasn’t a successful one and maybe the reason is the disappointing situation of automotive industry in Algeria.
Algeria’s Minister of Industry criticized the automotive industry situation few weeks before opening the new factory and promised to end this situation. Finally, on July 31, the government was able to suspend all new assembly projects in the country in order to fix the problems with the automotive industry in Algeria.
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