VW is still interested in Indian market

HYDERABAD — The Andhra Pradesh government has expressed its satisfaction over the decision of the German carmaker Volkswagen AG to return Rs 11 crore, which the government had paid for setting up a joint venture project earlier this year.

By From A Correspondent

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Published: Sun 24 Jul 2005, 10:23 AM

Last updated: Thu 2 Apr 2015, 4:43 PM

However, it was happier about another thing — the Volkswagen has not closed its doors on setting up a plant in India and the state government says that it continues to be interested in bringing the project to its shores.

Volkswagen announced its decision to pay Euros two million in a press note issued from the company's headquarter in Wolfsburg in Germany.

The Press release said that the company was assuming the responsibility for the damage caused by the suspected illegal dealings of the former Head of Human Resources at Skoda.

At the same time Volkswagen made it clear that it had nothing to do with Vasisht Wahan company, floated by Helmut Schuster in India and his other actions.

The Andhra Pradesh government had paid Rs 11 crore to this company as its initial payment towards equity share in the company on the understanding that this was an Indian arm of Volkswagen.

The company does not hold and has never held an interest in Vasisht Wahan, the statement said.

''According to the present findings, Dr. Helmut Schuster acted in India with out authority and furthermore misled the state of Andhra Pradesh,'' the statement said. The company has sought the cooperation and support of the Indian authorities in probing the matter.

Significant from the point of view of the state government is the remark of Volkswagen company that it remained interested in entering the Indian market.

In his reaction to the latest development the Chief Minister Y S Rajasekhara Reddy reiterated that the government was confident about the safety of the money.



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