Volkswagen Says Production Suspended In Algeria
In this article (4)
Carmaker Volkswagen has suspended production in Algeria, where the head of its local partner has been detained since June in a corruption probe, a spokesman for the German auto giant said.
“Volkswagen is aware of a corruption investigation by Algerian authorities into Mourad Oulmi”, who heads Algerian partner Sovac, the spokesman told AFP.
“Production at the factory, operated in a co-venture with Sovac, is suspended, as are deliveries by Volkswagen” to Sovac, the spokesman added.
The Sovac-Volkswagen factory opened in 2017 at Relizane, some 250 kilometers (150 miles) southwest of Algiers, and assembles kits provided by the German parent.
In 2018, it produced around 50,000 Volkswagen, Audi, Seat and Skoda vehicles.
Contacted by AFP, a spokesman for Sovac refused to comment but promised a statement later in the day.
Several Algerian news outlets reported that Sovac announced Sunday output at the factory stopped in October, effectively leaving 700 employees without work.
Several prominent politicians and businessmen linked to Abdelaziz Bouteflika have been detained or questioned in connection with corruption since the ailing president was forced to step down in the face of mass protests in early April.
Questions & Answers
Q.Why has Volkswagen suspended production in Algeria?
Why has Volkswagen suspended production in Algeria?
Production was suspended after the head of their local partner, Mourad Oulmi, was detained in June as part of a corruption probe by Algerian authorities. Deliveries from Volkswagen to Sovac are also suspended.
Q.What is the status of the workers at the Algerian factory?
What is the status of the workers at the Algerian factory?
According to Algerian news outlets, output at the factory stopped in October, which effectively left 700 employees without work. Sovac refused to comment on this when contacted by AFP.
Q.What types of vehicles were produced at the factory?
What types of vehicles were produced at the factory?
The factory, which opened in 2017, assembled kits for Volkswagen, Audi, Seat and Skoda vehicles. In 2018, it produced approximately 50,000 vehicles across these brands.
Reader pulse
Volkswagen's suspension: Prudent or risky?
20,189 votes so far