VOLKSWAGEN Group Singapore (VGS) is spending 250,000 euros (S$538,915) to start a regional training centre at Singapore's Institute of Technical Education (ITE).

The Volkswagen Regional Training Centre will at the Balestier campus of ITE College West, where during a five-year collaboration, Volkswagen will facilitate the transfer of its latest automotive technology to ITE lecturers.

They in turn will train ITE students and other automotive trainers from the Asia-Pacific region.

In a memorandum of understanding (MOU) signed between VGS and ITE yesterday, ITE College West principal Yek Tiew Ming said VGS will provide ITE with training equipment, material and expertise relating to Volkswagen technology.

'VGS will also facilitate the transfer of up-to-date technology and knowledge to ITE lecturers in automotive technology so they can keep pace with Volkswagen's latest technological developments,' Dr Yek added.

ITE expects the VW Regional Training Centre to have a 'huge impact in the training of manpower for the automotive industry in the region'.

'While most automotive manufacturers are reserved about technology transfer to external parties, this MOU spells the immeasurable contribution from VGS, as would be reflected by the sharing of exclusive technological know-how with ITE,' said Dr Yek.

The VW Group is Europe's biggest carmaker. Its brands include Bentley, Lamborghini, Audi, Seat and Skoda.

The company is a leader in diesel technology and has launched many automotive innovations.

Its clean-burning diesel, direct-injection and twin- charged engines boast among the lowest levels of carbon dioxide emissions.

'We strongly believe in contributing back to the community we operate in, and this (collaboration) is one of the ways in which we can do so,' said VGS managing director Olaf Duebel of the collaboration.

By getting ITE students to become increasingly familiar with VW technology through training, there is also another benefit.

'When they are done here at ITE, we might recruit them and get them into the VW organisation,' said Dr Duebel.

This article was first published in The Business Times on Apr 12, 2008.