Volkswagen and Sovac open multi-brand plant in Algeria

The Volkswagen Group and its local partner Sovac have inaugurated their multi-brand joint venture SOVAC Production in Relizane, 173 miles to the 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 can produce up to 200 units of the models Volkswagen Golf, Volkswagen Caddy, SEAT Ibiza and ŠKODA Octavia per day. From 2018, the Volkswagen Polo and ŠKODA Fabia are to be added to the local production portfolio. Sovac has been the distribution partner of the Volkswagen brand in Algeria since 2001.
“The African continent offers considerable growth opportunities for the Volkswagen Group. With the new plant in Algeria, we are expanding the presence of Group brands in North Africa together with our partner SOVAC. We are bringing leading modern technology to Africa, especially with the Volkswagen Golf. In Africa too, the Volkswagen brand will write a major new success story,” said Dr Herbert Diess, CEO of the Volkswagen brand and Member of the Group Board of Management of Volkswagen Aktiengesellschaft.
The main investor is SOVAC, which also provides the Managing Director of SOVAC Production as the majority shareholder. The Volkswagen Group holds a minority stake in the joint venture company. Following the signature of the contract in November 2016 and a construction period of only 200 days, SOVAC Production is a multi-brand factory with four assembly lines. The short construction period was possible as a result of close cooperation between the Volkswagen Group brands and SOVAC.
“We are very proud of our partnership with the world’s largest carmaker. We have been the official representative of the Volkswagen Group in Algeria for more than 10 years. Today, a new era in our partnership has started. From now on, SOVAC Production will be part of the Group. Together we will create an industrial network which will not only include vehicle production but also a supplier structure meeting the requirements of local production,” said Mourad Oulmi, CEO of SOVAC S.P.A.

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