The Wall Street Journal reports that Volkswagen is set to open its first South East Asian plant in Indonesia, with the first model to roll out of the new US$47 million (RM166 million) factory to be the Volkswagen Touran, hardly a surprise in a country where MPVs are just so popular.
The WSJ quoted Volkswagen spokesperson Christoph Adomat saying this Indonesian vehicle assembly plant is to be set up as Volkswagen’s first step toward the long-term development of the ASEAN markets. The plant will first only have assembly lines for CKD packs and paint shops, but later full fledged manufacturing could be considered. As Indonesia has trade agreements with Japan, it can also use the Indonesian base to export to that country.
This first ASEAN assembly plant location could have been Malaysia but the leaders involved chose a different path to go down, so let’s see where our own path leads.
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AI-generated Summary ✨
Comments emphasize that VW's decision to assemble Touran in Indonesia reflects labor cost advantages and Indonesia's large market, which may hinder Malaysia's automotive industry growth. Many believe Malaysia missed a vital opportunity due to government protectionism, resulting in lost foreign direct investment and technological transfer. There's concern that local car makers are not competitive, and some express frustration over protection policies hindering progress. Overall, sentiments are mixed, with some advocating for open markets and others criticizing current protective measures that favor Proton and Perodua.