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Reuters FRANKFURT, May 11 (Reuters) - Volkswagen (VOWG.DE), Europe's largest carmaker, took a first step in its South East Asia expansion strategy with a deal to assemble Tourans compact minivans in Indonesia this year.
VW is teaming up with Indomobil Group, the country's largest auto company and parent to Volkswagen's exclusive Indonesian distributor PT Garuda Mataram Motor.
Capacity initially would be several hundred Tourans and would gradually increase, VW said in a statement on Monday, adding that full-scale manufacturing could conceivably begin in 2012.
The Indonesian plant would take in pre-finished vehicles and carry out final assembly.
Shipping incomplete models for assembly elsewhere is a favoured method to supply markets with high import duties and, depending on the extent of the operation, can require roughly a tenth of the investment of a normal production site.
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