Paul Tan on the Automotive Industry
Jakarta’s Investor Daily reported that Volkswagen will be building an assembly plant in Indonesia next year to assemble a small car with an engine size of less than 1.5 litres as well as a van. The newspaper reported this citing an Indonesian industry ministry director general Budhi Dharmadi, but could not contact Volkswagen officials for comments. I wonder if this is true – and if it is – how will affect the Proton-Volkswagen talks?
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After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history. An avid electronic gadget aficionado as well as big-time coffee lover, he's also the executive producer of the Driven motoring TV programme.
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if it is true, then our proton may face huge challenge as the chance to form a joint venture with vw..
I have seen this in the news, twice starting from Feb this year. VW’s too big a business. It needs to be where the growth is. Shareholders would be asking for the growth. And growth is in Asia. The keyword here is ‘Emerging Markets’. A factory in this region would be for the less compliant market. No EuroNCAP, No CO2 emission restrictions, lots of people (bigger market volume potential) with + increase in GDP, and ahem..less restrictive labour laws and er… absence of trade unions.
Any MNC would have spent at least 2 years in study and gone through various approvals before making this decision. Proper management nowadays tend to keep that period as short as possible. So the decision to start down this road happened way before the Proton talks.
We already have Europestar right?
if VW officials are not contactable to verify the news, it could mean its
a) true or
b) not confirmed
last time, heard proton plant in indon
Maybe using Proton plant in Indonesia?
when the deal will be close ?
says “VW will build their own plant”,so P1 has lots to loose from this.
i think vw is playing tarik tali with proton and msia gov. they know p1 and gov will hear about the news. in my kampung it is called ‘gertak’. some how it will affect the discsn. it will change the status quo maybe.