FRANKFURT (Reuters) -- Volkswagen won approval from Thai authorities to build a manufacturing plant for fuel efficient cars near Bangkok after months of delays.
A VW spokesman said the company had received the go-ahead but had not yet decided whether to build the factory.
VW will now assess the situation, the spokesman said on Saturday.
According to previous media reports, the 1 billion euro ($1.1 billion) plant would build 1.4-liter gasoline engine cars and could produce up to 300,000 vehicles a year at full capacity.
The VW spokesman declined to provide any details about the plant.
Sources familiar with the matter told Reuters in April last year that VW had applied to build its first plant in Thailand, seeking to take advantage of tax breaks that had already attracted investment from Ford and General Motors .
Volkswagen already produces its Passat, Polo and Jetta models in Malaysia in conjunction with a local partner, while a new plant in Indonesia will take advantage of growing demand there.