FRANKFURT (Reuters) - Volkswagen said on Sunday it had formed a joint venture with Algerian sales partner SOVAC to assemble cars in the North African country, aiming for production capacity of more than 100 vehicles per day from spring 2017.
Volkswagen will hold a minority stake in the joint venture, SOVAC Production SPA, which will produce vehicles from the Volkswagen, Volkswagen Commercial Vehicles, SEAT and Skoda brands, the German carmaker said.
“The Volkswagen Group opted for participation in SOVAC Production SPA as we have co-operated successfully with our sales partner SOVAC for many years,” Volkswagen executive Josef Baumert said in a statement.
“For us, this is a logical step towards increasing vehicle sales in Algeria in the long term.”
SOVAC has been a sales partner for Volkswagen since 2001, Volkswagen said, adding it delivered 30,000 new vehicles via SOVAC in 2015.
Reporting by Christoph Steitz; Editing by Mark Potter