Volkswagen & DRB-Hicom Assembly Deal To Designate Malaysia As Regional Hub

Seow Yaohan | March 30, 2011

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Volkswagen & DRB-Hicom Assembly Deal To Designate Malaysia As Regional Hub

The local assembly tie-up between Volkswagen and DRB-Hicom Bhd is expected to create 800 new jobs by 2013, and to produce more than 30,000 Volkswagen cars from DRB-Hicom's plant in Pekan, Pahang by 2018, according to International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

“Pekan will become the regional automotive hub for Volkswagen”, Mustapa said to reporters during a tour of the assembly plant, pointing out that the ASEAN region is one of the fastest growing car markets. “Volkswagen sold 7500 cars in ASEAN last year. (But) currently, they don't have a strong foothold in ASEAN”.

The Pekan plant is presently employing 2300 workers and producing 25,000 to 30,000 vehicles per year—far less than the maximum annual capacity of 96,000 vehicles, leaving plenty of capacity to accommodate the assembly of the Passat sedan and the Jetta sedan, which, Mustapa confirmed, will commence in November 2011 as scheduled.

A third model, said to be the Polo Sedan, will join the local assembly lineup from the end of 2012. Under the German automaker's Strategy 2018 expansion plan, Mustapa added that the export of Malaysia-assembled Volkswagen cars to regional markets will start from 2013, while the targeted 40 percent local content can be achieved by 2014.

AboutSeow Yaohan
Seow Yao Han strives to bring you the latest and the most comprehensive information on cars available in Malaysia. But it's never easy for him to talk and write cars in this part of the world because what you lust after is often not what you drive home. When the euphoria of test-driving that branded, super-expensive sports car dies down, he just goes home in his less-than-glamorous ride.

Volkswagen Authorised Distributor

Company Phone
Volkswagen Group Malaysia Sdn Bhd 1800 88 8947
Address Website
Wisma Volkswagen, No. 7, Lorong Maarof, Bangsar, 59100 Kuala Lumpur, Malaysia www.volkswagen.com.my
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