13 min on how India is stripping VW of US$2.8 billion under the allegation of evading taxes. '.....
Germany’s Volkswagen once aimed to turn India into a "second China market," investing around €2 billion to build local factories and roll out multiple vehicle models. Yet, after struggling for a full 25 years, not only has Volkswagen failed to turn a profit, but it now faces accusations from India of "deliberately" underreporting import duties—allegedly evading $1.4 billion in taxes. Even more intriguing is that while India pursued these back taxes and penalties, Volkswagen was simultaneously negotiating with Indian authorities while quietly selling off equity and dismantling key equipment to ship back to Germany.
Notably, after successfully withdrawing some of its equipment, Volkswagen immediately announced plans to double down on the Chinese market, upgrading existing facilities to achieve an annual production capacity of 120,000 vehicles. So, what exactly did Volkswagen experience in India that ultimately forced it to shift its focus back to China?'
Germany is another silly country being raped by India for investing in India. Who is next? Keep your fingers crossed. There are many ways to skin a cat and the task is made easier by willing suckers who think they are smarter than the Indian snake charmers. Just keep pouring money into India, call it long term investment. No need to be responsible for long term investment as no one will be around to know who made the decision to throw OPM into the dark hole.
Singapore is the only silly country in South East Asia to fall for the charm of India. Worst, it even had a contract with India to allow for the transfer of their whole villages to work in Singapore.
ReplyDeleteAt least Volkswagen learns its lesson and cuts losses.
ReplyDeleteCan the "rich" little country, flushed with the blood, sweat and tears money of its citizens, wake up from its folly or will it throw even more money into the black hole?
Sadly, so true.
DeleteVW going back to China also too little too late. The Chinese market is already dominated by Chinese carmakers. The problem about companies moving out from China is that when they leave China, the market that they had goes to someone else and moving back will not bring back that same market. It is gone for good.
ReplyDeleteDoing business in India is getting rather 'mouldy' nowadays.
ReplyDeletePity the shareholders of SIA.
ReplyDeleteThey did not know that India is the rape capital of the world? Lucky it is not gang rape.
ReplyDelete