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NEWS UPDATES 24 March 2010

German auto giant to set up assembly in Malaysia by second half

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Volkswagen Group Malaysia Sdn Bhd expects to finalise its plans to set up an assembly plant for its completely-knocked-down (CKD) models in Malaysia by the first half of this year, reported national news agency Bernama.

Its managing director, Andreas Prinz, said the company was currently considering various options, including local partners as well as the plant site.

“Once finalised, it will take us about 15 to 18 months to set up our plant,” he told reporters after the launch of its 3S (sales, service and spare parts) centre here yesterday. He said the plant would assemble CKD Volkswagen models for the local as well as the Asian markets.

Prinz said last year Volkswagen sold 1.5 million units in Asia with China as the biggest market.

He said the company, however, had yet to decide on the models to be assembled here but would likely include its best-selling cars such as the Golf GTI and Beetle. Prinz said Volkswagen Malaysia aimed to double the sales of 900 units recorded last year.

“We are bringing in three models – Golf 1.4 litres, Polo 1.2 litres and Scirocco 1.4 litres by the middle of this year,” he said. The company now offers 10 models in Malaysia.

Official dealer, FA Wagen Sdn Bhd, a member of Federal Auto Holdings Bhd, has invested 1.2 million ringgit (1$=3.4 ringgit) to set up the new Volkswagen centre.

Federal Auto managing director Cheng Seng Fook said F.A. Wagen planned to open two more branches within the next 12 months with investment of some 10 million ringgit.

“This includes the 6.5 million ringgit purpose-built six-storey flagship in Glenmarie, Shah Alam that is expected to commence operations this September,” he said.

For its new 3S branch in Johor Baru that is scheduled to open in 2011, Chen said it cost about 3.5 million ringgit.

F.A. Wagen took over the operations of the new authorised Volkswagen dealership in Jalan 222 in November last year.

The PJ branch is also the first authorised outlet in Malaysia to achieve total compliance with Volkswagen’s new corporate identity.

Its spacious and comfortable 4,600 sq ft showroom is capable of displaying up to seven cars.

The full-fledged service centre is equipped with eight work bays and is able to service up to 200 cars a month.

Cheng said the significant investment in new Volkswage branches reflected the company’s confidence in the marque and its potential for growth in Malaysia.


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