VW will set up a small department in Malaysia as its sourcing hub for auto components in the region.Read the full news from Bernama below.
VOLKSWAGEN LOOKS TO MALAYSIA AS PARTS SOURCING HUB.
GERMAN auto giant and Europe’s largest carmaker, Volkswagen Group, is looking at Malaysia as its sourcing hub for auto components in the region to fulfill its worldwide production.
Volkswagen Group Malaysia Sdn Bhd managing director Andreas Prinz said the group’s global sourcing unit would set up a small department here within Volkswagen Malaysia in the next couple of months.
” They will not be looking only at the Malaysian market but use Malaysia as a sourcing hub for worldwide production,” he said after unveiling three new Volkswagen models for the Malaysian market and breaking of the fast at the company premises yesterday.
The new models are Passat CC, Scirocco and Golf GTI Mark 6. Volkswagen, based in Wolfsburg, Germany, was reportedly interested in assembling cars in Malaysia and was in discussions with several parties, including DRB-Hicom Bhd, but no concrete decision has been made so far.
Asked whether it was part of its completely-knocked-down (CKD) programme in Malaysia, Prinz said: ” We not only want to fulfil the 40 per cent local content requirement but also see the market as a really good sourcing opportunity for worldwide production.
” It is an independent programme from the CKD,” he said, adding that initially the group was looking at Singapore as a sourcing hub.
He said there were many high-technology companies based in Malaysia and international suppliers have benefited and managed to fulfill their requirements.
” Malaysia is the second biggest car market after Thailand but it is the biggest passenger car market. This is why we are really keen to grow our business here,” he said.
Over a medium-term, he said, the company was quite optimistic that the 40 per cent local content can be achieved.
On CKD, Prinz said he was hopeful that a decision can be made within this year.
” We are keen on entering the market but we have to see how it will be materialised. We need incentives from the government and then we have to achieve the local content,” he said.
” We have provided the government with a fairly huge wish list.
So we will see what will be their response,” he said.
Asked how many cars would be built if the CKD programme materialised, he said: ” We have not decided yet. I don’t want to comment on it. It is still in a working progress. There are different scenarios that we are working on.
” It depends on the whole package (incentives) that we are getting and then we have to work out between different scenarios,” he said.
Asked if Proton Holdings Bhd is among the parties they discussed with, he said: ” Currently in the automotive industry, everybody is talking to everybody, but we are focusing on CKD.”