Truth and falsity of Volkswagen factory which opens today

Truth and falsity of Volkswagen factory which opens today

The foundation stone for the centre for assembling of vehicles of a representative Company of the European Volkswagen Company is to be laid today in Mahanugawatta, Labuyaya, Kuliyapitiya. This occasion marks a promise of priority of the Yahapalana Election Campaign and both the President and the Prime Minister would be present.

The German Volkswagen Company is the biggest shareholder of the largest world vehicle market

competing neck to neck with two leading Companies, the Toyota and General Motors. The Volkswagen Company is not restricted to the production of Volkswagen vehicles alone but is involved in producing vehicles under the name Audi, Lamborgini and Porshe too. They even produce vehicles under the names Seat, Skoda, Bentley, Bugatti, Ducati, Scania and Man. They have commenced production factories in countries where raw material for vehicle production is available. Even if this is not possible, factories for the purpose of assembling vehicles have been established in countries where distribution could be boosted in terms of trade.

They have not in this case been met with any issues whatsoever anywhere around the world where the sales aspect of the vehicles are concerned because of the goodwill established and acquiring an assembling business of that nature would provide a beneficial investment opportunity for a country like Sri Lanka. This investment was launched by the local Company by the name of Senok. For this purpose the approval of the Board of Investment was provided by the government by granting a sum of $ 26.5 million.

Senok happens to be the agent for Germany importing vehicles such as the Volkwagen and Audi to Sri Lanka since 2005. This huge assembling centre erected in Kuliyapitiya under the name of Centre for Assembling through the mother Company of the German Volkswagen would in future provide large opportunities for employment too. The foundation stone laid today would take another two and a half years for the factory to be established and as such its work will commence towards the middle of 2019.

According to Clause 17 of the investment agreement signed in this connection by the Chairman of the Sri Lanka Board of Investment Mr. Upul Jayasuriya and Head of Senok Automobile (Pvt) Limited Mr. Noel Selvanayagam in August 2015, at the inception, only 1000 cc upto 2000 cc diesel vehicles will be assembled in this factory. Permission for these vehicles have been granted under the categories of passenger vehicles, sports vehicles, SUV vehicles, multi-purpose vehicles (MUV) or commercial vehicles. At the beginning it is expected to use these vehicles on a local basis only for a period of 3 years and subsequently to be exported to the overseas market after production.

Regulations covering assembling of diesel vehicles at the beginning would cover the demand existing for petrol / electric and Hybrid vehicles and would later be subjected to change. The total expenditure of this project is expected to be invested within a period of 24 months. It is expected that within the motor vehicle production factory and a training in motor vehicle industry is to be provided for young men and women. Through this process it has been revealed that plans have been set aside to provide 3000 job opportunities and 10000 indirect jobs for youth of both sexes.