Algeria inaugurates Volkswagen's car plant

Algeria will officially inaugurate, Thursday, the Volkswagen brand. The inauguration ceremony took place in Relizane, South-West of Algiers, in the presence of the Algerian Minister of Trade and representatives of the German, Spanish and Czech embassies. The assembly plant will produce the models of Volkswagen Golf, Volkswagen Caddy, SEAT Ibiza and ŠKODA Octavia.

Mourad Oulmi, CEO of SOVAC S.P.A., said that Herbert Diess, CEO of the Volkswagen brand, will attend the inauguration ceremony, which will reveal the four models to be installed in Algeria, adding that the visit by the German official is evidence of the factory's ability to occupy the first rank in Maghreb in the installation of cars.

SOVAC S.P.A. has announced that the sale of the produced cars will be 20 percent cheaper than imported cars. The plant is the first of its kind for Volkswagen in North Africa and the second in Africa after a factory in South Africa.
 
Oulmi added that the plant will also work to revive the handling activity, and the production of spare parts locally, and then export abroad at a later stage, adding that the delivery of the first cars of the plant will start in August.

Algeria's SOVAC announced the signing of a contract with Volkswagen to produce   cars bearing the brand in Algeria through a special plant. The contract was signed in Algiers in the presence of former Minister of Industry and Minerals Abdel Salam Bouchouareb, a delegation represented the German company.
 
The plant will produce 12,000 cars in the first year and 100,000 cars over five years. The Algerian company said it has invested 250 million euros in the project and that the plant will be available on four production units, each unit belonging to the Volkswagen brands.