Volkswagen and DRB-Hicom sign agreement to produce VW models in Malaysia – first up, Jetta and Passat from end 2011

vw hicom jetta

Volkswagen and DRB-Hicom today signed an agreement for local vehicle assembly in Malaysia, paving the way for VW to gradually expand its activities in Southeast Asia as part of its Strategy 2018 growth program.

The signing in Kuala Lumpur, which follows the MOU signed by both parties in August this year aimed at investigating the possibility of local vehicle production, was done in the presence of Prime Minister Datuk Seri Najib Tun Razak.

For starters, the Passat and Jetta sedans have been identified as the first VW models to be assembled here, with production of the first slated to begin from the end of 2011 at DRB-Hicom’s plant in Pekan, Pahang. The choice of powertrains or trim/spec levels weren’t announced, so we’ll all have to wait for details to unfold next year as the cars get closer to introduction.

VW hicom 1

DRB-Hicom stated that the operation is not to be seen as that of contract manufacturing, but rather a joint venture, with a significant involvement in the deal, which is worth around RM1bil – the planned ratio of DRB-Hicom’s investment is 70%, with VW injecting the remaining 30%. Pekan has a capacity to build 96,000 vehicles annually, and current capacity is just around a third of that, so there’s plenty of space in line with the new plans, though a significant amount of investment will be put in for infrastructure construction and product planning, among other things needed for the new venture.

Localisation in the assembly will certainly be an impetus, and the aim is to work towards a 40% local parts ratio on the Veedubs made in Pekan – VW will assist DRB in this localising aspect and help to identify suitable vendors, with everything having to conform to the tight quality control that VW is known for.

All this will move towards not just providing VWs for the local market, but for export as well. “Developing the market potential of the Asean region is of major significance for the Volkswagen Group’s long-term growth strategy,” said Christian Klingler, member of the board of management of Volkswagen AG with responsibility for sales and marketing.

vw hicom passat

He added that the Malaysian automobile market in particular, where more than 570,000 vehicles were sold in 2010, played an important role in the Group’s strategic planning. “We will be using existing structures and capacities at the DRB Hicom plant in Pekan to systematically extend our presence in the Malaysian market of the future,” Klingler added.

Plans are afoot to build further Volkswagen models for the Malaysian market on the basis of a local full scale production in the second expansion phase, from the end of 2012, with the Jetta scaled for then, and it will likely be joined by the Polo. This CKD assembly will have an initial annual capacity of several thousand vehicles and will be successively increased, and VW is looking at a figure of around 40,000 to 50,000 cars built annually, though that will be some time in the future.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Malaysian Car Industry disgusts me on Dec 21, 2010 at 9:11 pm

    yes. exciting. but i think like toyota and honda…the cars will kind of lose their sparkle.

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    • Ronaldo on Dec 22, 2010 at 10:53 am

      Great move by DRB-HICOM. i think the only one losing out will be stupid Proton…

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      • x-vios on Dec 22, 2010 at 1:51 pm

        well… if it was Proton, does that mean DRB lose? It’s irrelevant, VW can only have one partner in Malaysia, it’s either this or that. All I want to say is, thank you DRB, thank you VW.

        PS. Does this mean Thailand lost to Malaysia?

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      • moneyman on Dec 22, 2010 at 11:33 pm

        Come on, they are all GLC’s. The money will end up in the same porch.

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  • Paul Tan on Dec 21, 2010 at 9:13 pm

    I’m actually very curious to see if Volkswagen uses torsion beam or multi-link for the rear suspension of the CKD Jetta.

    North America’s Jetta gets the cheaper and less sophisticated torsion beam suspension while European Jettas get multi-link.

    http://paultan.org/2010/11/01/european-spec-new-volkswagen-jetta-gets-four-link-suspension-instead-of-torsion-beam/

    It seems the American Jetta was “specced down” in that manner because the general view is that American consumers cannot appreciate finer details like that, so it’s better to reduce costs. Wonder if Volkswagen considers Malaysian consumers sophisticated enough to appreciate the multi-link Jetta. That will define the kind of products that Volkswagen will be offering us in the future.

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    • stupidHonda on Dec 21, 2010 at 9:35 pm

      if torsion beam can make it sell below 90k,i’m all for torsion beam!

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    • trav_da_man on Dec 21, 2010 at 9:56 pm

      Very likely the Jetta we get here will be torsion beam. Volks understand Malaysian buyers are priced minded rather than spec/value minded and easily satisfied as long the car has quality and decent economy. They know they need to price their car well if they want to get volume in Mysia/SEA.

      Still I dont think that much an issue ever since torsion beam cars can handle well in our roads.

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    • Ash Menon on Dec 21, 2010 at 10:31 pm

      my money’s on a torsion beam as well. I can’t see how VW wouldn’t have picked up on Malaysians being obsessed with price and resale value.

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    • Torsion beam dynamic for me is less interesting than Multi-link/double-wishbone one. If VW really opt for this ‘inferior’ spec than easier for the potential buyers to decide between Altis and the like. Look at the Civic FD and Civic 1.7, the latter uses torsion beam and the sale overtook by another torsion beam Corolla (but T seems superior though uses inferior suspensions).

      When FD introduced in 2006 the Honda’s double-wishbone can displaced Altis with aging architecture and cheaper torsion beams and became a leader again.

      FWD+torsion beam for C-segment simply too much and does not augur well for VW positioning as driver’s car that place important characteristic of ride and handling. I love Toyota level of reliability but not their stingy!

      You can compare a torsion beam cars like Altis, Livina, Vios, City, Yaris, Sylphy, Latio vs Civic, Camry, Mazda3, Mazda6, Teana, BMW, mercedes and see the difference.

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      • Sure ka the Civic ES 1.7 we get here in Malaysia uses rear torsion beam suspension? The Civic ES was a let down to purist boy racers cos Honda opted for the McPherson strut layout suspension instead of the famed double wishbone. But I believe the rear suspension is still control arm type layout for JDM and our Malaysian market.

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      • squawk on Dec 22, 2010 at 9:26 am

        Some of the best handling contis also use torsion beam and they handle a lot better than Japs with multi-link and whatnots so I wouldn’t call them inferior. It’s the art of tuning the suspension that’s important.

        And yes, I believe VAG will use torsion beam here.

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        • bugger on Dec 22, 2010 at 12:42 pm

          well said, i think ppl here starting to have their mindset implant.. torsion beam inferior.. multilink the best..
          i mean c’m on, looks at how best motoring tested the cars..
          a proper setup torsion beam still can outperform some multilinked suspension..

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          • You know that Wish 2.0 using multilink when smaller cc 1.8l using torsion beam. Otherwise BMW 5, 3, Mercedes will use torsion beam la.[http://www.mycarforum.com/index.php?showtopic=2637884] If the performance of torsion beam is = independent suspension such as mult-link, don’t you think high performance cars like WRX, EVO, F1 will used torsion beam instead?

            Of course it depends on many factor (like small car rather use torsion beam since space-wise).

            Torsion beam
            Trailing arms are installed between the body and wheels and the right and left trailing arms are connected by a cross beam. This cross beam is called a “torsion beam” because it takes the torsion of the car’s suspension during cornering etc. There are many types based on the position of installation. The most popular “torsion beam” is a cross beam that is located at the center of arms and is called as “center beam” or “coupled beam”.
            Merits:
            Lot of space is available as there aren’t many parts. It is possible to tune the handling stability by combining the cross beam stiffness and the bushing of trailing arm.
            Demerits:
            A pendulum like rotary motion of the whole suspension could occur as the assembled section of the trailing arm takes the whole lateral force from tires. It worsens the handling stability.

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      • Hoondo on Dec 22, 2010 at 10:21 am

        Civic sedans never uses torsion beam even in 1st generation. all the last 2 gen of Civic sedans uses multi link rear suspension. please get your facts right.

        Renault Megane RS uses torsion beam yet outperform many all independent suspension cars.

        Torsion beam suspension is also tougher than multi link and can handle our rough roads better without requiring tuning and alignment so often.

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      • Bobby on Dec 22, 2010 at 6:44 pm

        The Renault Megane RS 250 Cup is torsion beam. It doesn’t matter if its torsion or multi. Same goes with fwd or rwd. It’s whether the manufacturers care to make them handle well. I’m all for torsion beam for better interior space. Multi link as in a Camry? No thanks.

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        • Paul Tan on Dec 22, 2010 at 7:27 pm

          Yes yes, we know torsion beam can handle well too. Megane RS 250 Cup handles awesomely on torsion beam. Which is lucky for Renault, since the Megane is only available with a torsion beam.

          But the point here is that Volkswagen puts BOTH types on ONE car. There’s bound to be some kind of difference, otherwise they’d just stick to torsion beam only.

          And will there be any interior/boot space differences between the torsion beam Jetta and the multi-link Jetta?

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    • american drives the straight line, mostly,

      but the road situation in europe or malaysia makes car control is more demanding ,therefore, a good suspension dynamic is needed

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      • Eight Gen Euro Civic gets rear torsion beam layout even for the Type R hatch. JDM and USDM does not, and uses control arm layout which is superior.

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    • clutch basah on Dec 22, 2010 at 9:13 am

      Trust me it will be torsion beam, most doesn’t know the difference anyway.
      Even if they knew the VW logo will blinded them.

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  • waldan on Dec 21, 2010 at 9:13 pm

    yeah! cheaper vw….haha

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  • faizal kc on Dec 21, 2010 at 9:14 pm

    dont wait. prices still expensive !!!

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  • that good….we attract conti car thai with jap car…we cheaper with conti car. thai cheaper with jap car

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  • mystvearn on Dec 21, 2010 at 9:20 pm

    Hope that Passat CC and Golf GTi will follow soon. It makes sense to CKD the most popular model in Malaysia (GTi). Not sure why going down this route…

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    • Paul Tan on Dec 21, 2010 at 9:28 pm

      They released a statement earlier this year that they will not CKD anything currently on sale. I think they’re most likely protecting their CBU product 2nd hand value. Notice they’re only CKDing full model change products for now. The CBU Jetta and Passat that were sold here are last generation. The only chance for a CKD golf gti
      Is Perhaps when Mk7 Golf GTI is out.

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      • scabek on Dec 22, 2010 at 7:31 am

        no need for the wait, just get started selling MK V GTi then, everyone’s winner

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      • squawk on Dec 22, 2010 at 9:28 am

        At least they’re smart, unlike a certain Jap+local car company’s recent fiasco. :-P

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    • more popular in term of wat..sales? price? perception? online popularity?

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    • Malaysian Car Industry disgusts me on Dec 21, 2010 at 9:44 pm

      i disagree. it would definitely lose its premium status. if volkswagen were to ckd the gti. bmw might as well ckd the m3.

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      • Sorry, but I’m confused. First, people are bashing the government for the exorbitant car prices. But now, when it is possible to make some cars a little bit cheaper over here, you disagree. What exactly do you want?

        I still think the government are run mostly by idiots; but surely, this is a good move? We always complain that Thailand are attracting the Japanese manufacturers, but now, when we can get one of the biggest (and best, in my opinion) car maker, we are reluctant to even agree that it is a job well done.

        Furthermore, I don’t think VW is on par with BMW on the premium scale.

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        • Audi under the VW brand would be on par with BMW.

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          • naim jonn on Dec 22, 2010 at 3:50 pm

            on par? AUDI is always better than Bimmers..

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        • naim jonn on Dec 22, 2010 at 3:49 pm

          yup i agree, even if they r dumb n clueless, a good action is a good action…

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    • onda onda on Dec 22, 2010 at 8:05 am

      and scirocco too…wuuu haaaa

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  • stupidHonda on Dec 21, 2010 at 9:34 pm

    yeeeahhhhaaaa!!!..juz what i’m predicted…jetta will come!!

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  • dozzyy on Dec 21, 2010 at 9:36 pm

    Dear all,

    I am a little out of topic, but I would like to find out if the excise duty for imported cars will be increase next year 2011? Because I heard from some one today that prices for imported cars will increase FROM JAN ONWARDS….

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    • rejab on Dec 21, 2010 at 10:06 pm

      Bro…not only imported car price increase ….car spareparts already increased price eg battery inceased 10% from Nov 2010 !

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      • dozzyy on Dec 21, 2010 at 10:30 pm

        rejab,

        Was this announced? What is the percentage which will be increased for cars? I thought due to AFTA, car prices should be reduced?

        What about the 2015 agreement??

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        • dozzyy on Dec 22, 2010 at 8:49 am

          Paul,

          Any comment or advice?

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        • don’t you know since TDM’s leadership lastime, Malaysia has never complied to AFTA rules?

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        • rejab on Dec 22, 2010 at 11:23 am

          No announced was made!. Actually I found out when looking for my car battery. Further more if u aware when doing ur groceries price of most items already increaed compare early of the year.

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    • since when they do revise excise duty?…last time they change a bit but not on excise duties..don la bring false news..AFTA applicable to all car made in ASEAN not from japan, euro, korea or usa eg import duty for thai made car is 0% when enter malaysia and so on..if the car made in japan 30% import duty is impose if enter malaysia n 80% import duty if enter thai (then again thai-jap hav FTA bet 2 of them so jap car enjoy 60% import duty)

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      • The Loner on Dec 22, 2010 at 12:37 am

        Check this duty structure from MAA:

        http://www.maa.org.my/info_duty.htm

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  • John Doe on Dec 21, 2010 at 9:38 pm

    Yes, it would make more sense to built popular models for the market. I assumed this would be a natural progression later on. Main question is whether Volkswagen be able to ensure the quality of its cars doesn’t get affected our “tidak apa” attitude workers?

    Further, looking at cars assembled in Malaysia by foreign make (Honda, BMW, etc), expect little reduction in prices but substantial drop in quality and finishing.

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    • wat a letdown..did u know that 2 big processor (intel, amd) maker 2 big hard disk (WD,seagate) maker hav manufacturing plant in malaysia..they don hav that issue

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      • The Loner on Dec 22, 2010 at 7:35 am

        The difference between computer parts manufacturing and car manufacturing is the method of providing warranty. Intel, Seagate and WD are providing replacement for the faulty parts (although it’s recertified repair) with different serial numbers.

        As for vehicles, manufacturers can’t provided such whole swapping for large or complicated, only for the parts inside. So car owners need to bring the car to service centres for servicing.

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        • i mean attitude bro as mention from john doe comment “tidak apa”..i don say bout method or manufacturing

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      • computer chips wont cause you your life when defects happened. Whereas car defects will/have a higher chance of causing damage/bodily harm to you.

        btw also, computer chips are not made to last long, their average life cycle is 3 yrs. if they last long, chipmakers will be out of business. We can’t say that about cars, cars need to last longer as their means of usage are different from computer chips.

        back to CKD cars, as we all might have already knew, any CKD cars in malaysia will never be fullspec-ed. We sommore say thank you for the cheaper price but the truth is, alot of specs have been removed, hence the cheaper price.

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    • shoon on Dec 22, 2010 at 12:04 pm

      bmw 3 series, 5 series, x1 or x3 also ckd.
      merc c class also ckd.
      just hire the people with the same attitude as these 2 companies hire to ckd the vehicle can already

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    • ohtdpg7w on Dec 22, 2010 at 5:35 pm

      sad to see your perception on malaysian, no confidence at all on our own capability. if like this, malaysia will never be an advance country.

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  • someone on Dec 21, 2010 at 9:41 pm

    Hopefully the it will be the same specs as in Europe rather than US, as Europe will be using TSI with DSG but not in US.

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  • vw supporter on Dec 21, 2010 at 9:42 pm

    Hope that we get the same spec as from Europe rather than US.

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  • faizal kc on Dec 21, 2010 at 9:43 pm

    who said cheaper?? Jetta will be around RM 170k…

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    • cheaper does not mean cheap….eg same car 1 price RM200k n 1 price RM150k which one is cheaper? is it cheap..no rite but its cheaper than the other one

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  • faizal kc on Dec 21, 2010 at 9:47 pm

    jetta rm170k

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  • kitman on Dec 21, 2010 at 9:56 pm

    look like new saga fl

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  • jimmyc on Dec 21, 2010 at 10:02 pm

    what?? no beetle?

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  • confr on Dec 21, 2010 at 10:02 pm

    waiting for the price

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  • kecohbetol on Dec 21, 2010 at 10:21 pm

    even the jetta caught the eyes….

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  • rosdi on Dec 21, 2010 at 10:49 pm

    I am still waiting for the Polo GTi. Heheh….

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  • Alpha on Dec 21, 2010 at 10:57 pm

    Camry/Accord/Teana/Mazda6 priced Passat!!bring it on!!

    Still the Passat CC looks ages ahead of the new Passat.

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  • JasJos on Dec 21, 2010 at 10:59 pm

    I’m hoping they will bring in the Touran either CKD or CBU. Sign…

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    • JasJos on Dec 21, 2010 at 11:14 pm

      Opss.. just realised VW are already building Touran in Indonesia.

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  • Makinen on Dec 21, 2010 at 11:01 pm

    Might as well CKD the Amarok. Can beat the pathetic Hilux.

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  • tokmoh on Dec 22, 2010 at 12:37 am

    HOOOLLLLLYY COOOOWW, terkejut beruk aku ingat first pic tu Lancer rebadge!!! And that rims looks like Inspira’s!!

    Anyway, that’s good news!! V-dub comin to conquer yo! If there’s one non-local car brand I can be confident of breakingToyota/Honda’s duopoly, I can’t think anyone else who can do a better job than VW. Gogogo, V-dub!!

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    • Kamil ace on Dec 22, 2010 at 1:16 am

      yup, the front look almost like lancer

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      • tokmoh on Dec 22, 2010 at 2:56 pm

        8 + 6 = 14 butthurt lancer owner spotted.

        Y so srs? Jatuh second hand value lagi? hahaha

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  • Bagong on Dec 22, 2010 at 12:43 am

    Tak lawalah design depan VW Jetta & Passat tu. Rupa macam hapa tah.

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  • Vw should give the Malaysian motorist some proper value. That will wake some of us dugongs from thinking that what we pay for the jap cars are fair. Look at mitsu cars, imported and better equipped, yet cheaper than t&h. Stop blaming the government taxes and start checking the exorbitant profits t&h are making from us. Yet we still buy.

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    • someone on Dec 22, 2010 at 2:41 am

      government is still one of the biggest issue, we can’t stop blaming them. The blame is not only about the stupid high tax but after taking all the tax and do nothing better and keeps on increasing petrol price, tol price this price and that price.

      Yet there is still one fellow who is being protected still said that cars in malaysia are too cheap, government should be thinking of increasing the road tax in malaysia. What is this!!!???

      As I said earlier, I don’t mind paying more for those people that can do better and make things better, but I really do mind that I paying those money for getting nothing.

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      • actually gov cap the price by using subsidy u should grateful for that..actual price far higher than our petrol price ron95 in mean…since not many country using ron97 i cannot compare properly..europe using ron95/98 mostly, OPEC country only kuwait,qatar n uae hav ron more than ron97, the US using mostly lower ron than ron95

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        • Question on Dec 22, 2010 at 1:59 pm

          In the context of today’s Malaysia, I think citizens shouldn’t need to be “grateful” to the government for capping the fuel price. We elected the politicians because they WANT us to believe they are able to properly manage our country resources. The citizens voted for them based on faith of their CLAIMED abilities. Personally I don’t like the word “grateful”, it is not like we pushed them to be a politician. To reiterate, this opinion is based on the context of today’s Malaysia.

          We are an oil producing country thus we have an advantage over other countries that are not. Yes, our fuel price is lower than many countries but we are also higher than other oil producing countries. Our country is also blessed with many other natural resources that these oil producing countries do not have.

          Our country can do better. She deserved to be better. Her citizens deserved to be better.

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        • vw supporter on Dec 22, 2010 at 3:14 pm

          Please also do understand that our car price is much much much more higher compare to other countries. So, if they want to increase the price of the petrol, can, reduce the car price for god sake.

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        • DICKYBIRD on Dec 22, 2010 at 4:20 pm

          grateful?! haha! are supposed to be grateful for crappy schools that produce kids who dont know how to speak proper english or think critically, who cannot find work save in the already bloated civil service. can they even spell grateful? but back to the point, you wanna do away with subsidies then also liberalise the car market.

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    • TengkuVI on Dec 22, 2010 at 4:28 am

      Msian buy T & H cos they don’t have a choice.
      Would a sane person wanna buy a Proton which offers
      substandard and the same crap year after year?
      Come on – Proton is equally guilt of price manipulation
      in this protected market.!!

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      • saki77 on Dec 22, 2010 at 2:42 pm

        Sane people who dont have the luxury to buy T & H will still buy Proton…

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        • DICKYBIRD on Dec 22, 2010 at 4:14 pm

          hello since cannot afford to buy T&H HAVE to buy proton garbage lah, sanity nothing to do with it.

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          • littlefire on Dec 22, 2010 at 5:59 pm

            U still have a choice to choose between P1 & P2, but in the end who win?

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  • nabill on Dec 22, 2010 at 1:22 am

    i stil think the advantages of a ckd wont be as much as we the cosumers think it is…its alot cheaper for vw to assemble here…bt will they pass those big savings to the buyers ?
    i highly doubt it…

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    • someone on Dec 22, 2010 at 2:46 am

      VW marketing strategy is different from other auto dealer here in malaysia and we can see that the price for gti and golf 1.4 tsi is reasonable and value for money. They have proven this to us, I believe their CKD units will be even value for money.

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    • steventan on Dec 22, 2010 at 4:20 am

      Dissapointed that only Passat & Jetta to be assembled here as
      well as the slow pace for it to come to Msia ( end 2011)
      The Touran/Polo would have been a better choice for Msian.
      These 2 models will definately be priced way out of the average
      Msian budget – $180K !!! :(

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  • bohtakchek on Dec 22, 2010 at 7:49 am

    how to pass the savings to consumer la? you look at the tariff structure of car and you will know how much money goes to gomen coffers…

    http://www.maa.org.my/info_duty.htm

    Local taxes for CBU & CKD card for 1,800 – 1,999 cc car is at 80% and above 2,500 cc car is 105% … for us to wait for cheaper car it is very unlikely. what can we do?? … wait for MRT and continue to buy Saga, Myvi family descendent.

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    • if CKD they can avoid 30% import tarif since CKD import tafir is only 10% bare in mind this only applicable to non ASEAN…car made in ASEAN no import tax…if car 1.4cc CBU made in europe enter malaysia tax involve is 30% import tax + 75% excisetax + 10 sales tax which translate to 115% tax compare to CKD 10% + 75% + 10 = 95% (ASEAN made 75%+10=85%)….it mean suppose at least 20% cheaper than CBU..not cheap but cheaper

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    • ikat perut on Dec 22, 2010 at 11:56 am

      CKD la brand ape pon kat msia nih…xkan jadi harga mampu milik nye

      kebanyakan rakyat ‘hanya layak’ pakai proton ngn perodua je…tu pon loan 9 taun

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  • akupunya on Dec 22, 2010 at 8:12 am

    i hope the third model is Amarok.

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  • subhero on Dec 22, 2010 at 8:47 am

    another DAS AUTO

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  • Jaybond on Dec 22, 2010 at 8:54 am

    Certainly will give more choices for the car buyers out there. Quite surprised though VW Vento is not included as well (perhaps in the near future), as this is could be the bread & butter model to rival the likes of Toyota Vios, Honda City & Peugeot 207.

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  • Good news to all VW fan. I have been waiting for this news ever since VW & Proton cease their talk of JV. Lets hope Jetta comes with good pricing and good spec. I prefer they bring in the european spec rather that US spec. My wish list The Jetta 1.4 Tsi around RM 155K, 2.0 Tsi RM 185K, 1.6 TDi RM 175K whereas Passat 2.0 Tsi RM 200K and Passat 2.0Tdi RM 210K all comes with at least 6 airbags and 6 speed DSG.

    That will make H, T, N, BMW, Volvo & Merc sweating…..or pee in their pants. I think the future will see more malaysian continuing the current trend replacing their cars with continental cars. This is good for us consumers as T, H & N will bring better spec cars to compete. Our very own proton also will have to introduce better spec and quality cars. As we all know DSZ proton is working very hard at it and hopefully malaysia workers down at the proton factory & service centre will change their tidak apa attitude.

    1Malaysia

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    • I think they need to price the Jetta closer to civic / altis, and the passat to accord / camry if they even hope to penetrate the malaysian market. Pricing the Jetta at 170k and the passat at 200k will not make them selll in numbers that justify local assembly/production.

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      • If Jetta close to Altis/Civic then it will change Malaysians perception over VW. Or at least bring Hybrid Jetta to enjoy the lower duty for hybrid.

        If Passat too close to BMW 320i/Audi 4 at RM240k many will go for the premium Teutons.

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    • Mata2 on Dec 22, 2010 at 11:43 am

      No sweat at all bro. Ple who can afford bmw or merc won’t buy vw passat or jetta. You don’t have attitude driving these models, old man’s model

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    • vw supporter on Dec 22, 2010 at 3:23 pm

      Let says now golf 1.4 tsi is RM160k and base on what KZM said CKD will be 20% cheaper and usually sedan in Malaysia is cheaper compare to hatchback, so RM160 – 20%, the price for jetta should be around RM128k and less with the same specs.

      Imagine if this is the case, T & H really will sweat like hell. Anway, This is just my opinion.

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    • jerami klaxon on Dec 23, 2010 at 10:39 am

      Agree with you in principle but my wish list :

      Jetta starts from 150k
      Passat starts from 175k

      then the others (especially Toys and Hons) will start to seriously look at their pricing position strategies…

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      • JustUpgrade on Dec 23, 2010 at 3:27 pm

        Jetta 150K can win over Camry 2.0, Accord 2.0, Teana 2.0, Mazda 6 2.0 Sonata 2.0, and 407 2.0?

        Passat 175K can win over Camry 2.4, Accord 2.4, Mazda 6 2.5, Sonata 2.4?

        Lets get the battle begin! now we have lots of choice beside T & H already!

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    • JustUpgrade on Dec 23, 2010 at 3:45 pm

      VW is vs the japanese, while Audi from VW is vs the Bm and Merc

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  • people are still waiting for Polo, much cheaper. definitely will kill vios and city…

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  • Ze Ber on Dec 22, 2010 at 10:13 am

    Looks like VW wants a share of the local market as well.

    The first thing they need to do would be to totally upgrade their service centres to better what is existing in the market.

    They also need to have a stronger dealer network.

    Marketing needs to be overhauled as well.

    The local buyers are well-versed in latest tech n although they may not really understand a torsion bar…..they know it is not new tech.

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  • Does anyone know when VW is coming to Sabah. They’re in Sarawak but have ignore us poor souls here for too long. I’ve emailed VW Malaysia but they don’t even bother to reply. Bad customer relations!

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    • They are going for volume, unlikely to do much for the time being unless they bring in their truck……

      Nobody dare to answer you…..so safer to ignore = rude.

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  • Honda8thGen on Dec 22, 2010 at 10:42 am

    Shanghai Taxi and Limos uses VW Passat….

    DRB-HICOM distributes and assembles foreign marques such as Audi, Mercedes Benz, Honda, Suzuki, Mitsubishi, Isuzu, Mahindra as well as local marques such as Proton, HICOM Perkasa and Modenas

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    • KLIA limo using Mercedes!!

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      • Dear KZM,

        You’re talking about the rare and small numbers of limousine service in Malaysia. Furthermore, taxi and limousine are not even in the same category. We’re referring to the regular taxi cars all around the country. 90% of them are driving tin milos manufactured at tanjung malim. Figured it out yourself will ya. Don’t be an ignorant.

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        • Unforgiven on Dec 22, 2010 at 1:11 pm

          KZM may be driving a tin milos and still very proud if it… LOL!

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      • Honda8thGen on Dec 22, 2010 at 2:00 pm

        Yes SYOH is spot on…they are using Passat as town taxis !!! New models, ok…unlike our Taxi Limo (premium…Mercedes) which is 10 to 15 years old model.

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    • ‘Shanghai Taxi and Limos uses VW Passat’

      And?

      In Europe they are using Passat, Mercedes E-Class, BMW 5 series, Skoda Superb as town taxis?

      And at Munich airport you can get even a S-Class or Audi A8 as an airporttaxi? Or how about a Porsche Panamera Turbo taxi: http://www.egmcartech.com/wp-content/uploads/2010/04/porsche_panamera_turbo_taxi_main.jpg

      What’s so special about a taxi?

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  • 2sidesofthecoin on Dec 22, 2010 at 10:50 am

    Whoop, i just hope safety isn’t affected.

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  • Spot on……. VW will CKD passat & jetta here …next model i think is Vento
    This target the current owner of T&H …..
    1. Passat vs Camry & Accord
    2. Jetta vs Altis & Civic
    3. Vento vs Vois & City
    Price i think will be 10k~20k more then T&H with more feature & spec to cater next upgrade from T & H owner…..
    With more 3S center and apperance with good marketing in malaysia the 2nd hand value will be good for current owner

    In Malaysia pricing is not everthing compare before as malaysian income grow….
    What malaysia want now is better car so there is a gap betweeen T&H to Mer&Bee that where VW will came in…..

    Look at Kia, Hyundai & Pug as example, thier price is very attractive but with poor 3S and marketing plan (price came go down in future launch) there did not eat into T&H market share….

    So someone start with P&P as thier 1st car with upgrade to T&H then VW and then Mer & Bee….

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    • why should VW price itself higher than a Toyota / Honda?? Toyotas and Hondas are already selling their products at a premium price over here with its branding.. in most other countries Toyotas and Hondas are not premium brands, neither are VWs. Why should someone changing from a Honda Civic to a Jetta be considered as an upgrade? I definitely see it as a parellel, and therefore would not pay a premium for a Jetta over a Civic which is already priced at a premium in Malaysia.
      As I mentioned in an earlier post, if VW were to price their cars too high here, they are not going to sell in numbers which is going to make this whole investment for a production base here a flop. This is just basic economics..

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      • Unforgiven on Dec 22, 2010 at 3:36 pm

        If they can’t sell it to M’sian, jst sell it to other ASEAN/APJ country, or just export it out.
        Do you think they really need M’sian market that much?
        One of the reason is also due to the protection if they can’t sell their cars here…

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      • I mention:
        Price will be 10k~20k more then T&H with “more feature & spec” to cater next upgrade from T & H owner…..

        Example : Civic 2.0 with 155hp/188N@4500rpm price at 128k then i don’t see why Jetta cannot price at 140k++ with 160hp/240Nm@1500~4000rpm + 7speed DSG gearbox + rain/light sensor + 7 airbag +……..

        I will pay 12k +++ to get more feature and higher spec engine & gearbox

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  • Aking on Dec 22, 2010 at 11:48 am

    Soon VW Passat will be an official car for govt replacing the Perdana…

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  • peeps on Dec 22, 2010 at 11:55 am

    cool.. can see they are growing fast in our country. market acceptance here is pretty good. now we can have more vw on the road and cheaper parts.

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  • shoon on Dec 22, 2010 at 11:59 am

    torsion beam or multi-link doesn’t matter. just make the price right. there are good cars with torsion beam and there are cheap cars with multi link such as proton.

    if can be priced like a golf 1.4 tsi around 145k that will be good. if below, best!

    think 145k isn’t too low we’re asking, assuming slapping (i know it’s not just slapping a boot, but just merely saying as though it is) a boot makes it about 160 – 165k if import, so if ckd, hopefully can go to 145k

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    • Tigger on Dec 22, 2010 at 4:10 pm

      RM 145k………very competitve segment……..Golf for a certain segment only……if VW wants to succeed they will need something cheaper n not lower the spec.

      Anyone really bother to find out how much time it takes to service a VW? on average.

      You will be stunned.

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  • VW sales great cars here, but the pricing could be lowered.

    Taxi all over world, either from developing countries and developed countries are either having spacious or better cars. Far more better than Malaysia’s pathetic Proton Iswara.

    Malaysia is also the only country that passengers got to ask driver where they wish to go before hop into a taxi.

    The authority throw in 100 of millions for tourism and end up squeeze all those foreign tourists in Proton Iswara with cut throat fares from one tourist spot to another within KL.
    Try imagine squeeze in 4 6-footer in the Iswara, you should know what I meant.

    Asked me why I have not visited all tourist spots in KL. Know why, 1 – tired of driving and parking here and there; 2 – I can’t afford the cut throat taxi fare. I spent less taxi fare in foreign land than a day in KL.

    Malaysia Boleh.

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    • shoon on Dec 22, 2010 at 1:19 pm

      Yes, agree taxi fare is ex here. Nevertheless have u tried taking taxi in London b4?

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      • I don’t mind paying the cab fare; cheap or expensive, it’s just malaysian cab drivers mostly don’t use the meter so every time i pay i feel cheated. When the cab charges me according to the meter, I always pay 50 cent-1RM extra because I appreciate the cab drivers’ honesty. I know they could tamper with the meter and what not but as long as I’m charged according to the meter I will assume that I’m not cheated.

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        • Sagua on Dec 22, 2010 at 2:28 pm

          Malaysian will always justify all the funny things happening here. Why? Becos its easier to talk, than actually improve it. Msia boleh.

          Yes, UK Cab is expensive ( becos your RM is so tiny), so, malaysia is the best country in the world.

          Cheap car, CHeap petrol, cheap nasi lemak, cheap taxi, everything cheap, the salary is even cheaper. lol.

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          • shoon on Dec 22, 2010 at 6:55 pm

            Oh, you are totally getting me wrong where you are making assumption I’m talking about the currency. I’m not, I actually meant that taxi in london is expensive due to how fast the meter jumps. a short stroll in the city is expensive (again not talking about currency).
            if you have a chance, try and hop onto one and observe the meter.

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    • JohnDeep on Dec 22, 2010 at 2:43 pm

      VW taxi in Shanghai, scorpion is also a very old model and cramp for 4 adults but surprisingly the fare is considered cheap despite expensive petrol price. KL is now has more choices for taxi, red, blue or you can get Merc from hotel if you are so tall for proton.

      I enjoyed taking something different when a broad, roda tiga (engine), roda tiga (paddle) or even sampan. I don’t care what is the taxi brand and model.

      Most of tourist spots in KL have adequate parking space for your car unless you are driving 20 ft limousine.

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  • ABTguy on Dec 22, 2010 at 12:12 pm

    I suspect VW may just bring in the non-turbo model to fight with T&H. Follow their global strategy, their non-turbo model could be selling at par or might even be slightly cheaper than T&H. Because T&H are overpriced !!

    And probably limited quantity of turbo model selling 10-20k additional.

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  • blackjkx on Dec 22, 2010 at 12:31 pm

    Germans from VW came to my workplace previous month.localization in progress.hopefully the business oppoturnity is on.

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  • Unforgiven on Dec 22, 2010 at 3:25 pm

    Next car gonna be a VW just to try it out…

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  • Jaybond on Dec 22, 2010 at 3:39 pm

    If VW is willing to put a very attractive pricing on their CKD cars, it could potentially send shivers or causing kerusi panas to T & H bosses here & Japan. VW brand & reputation is getting stronger. But the question will remain, will VW do or not do?

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  • Just wondering what is the warranty for CKD.
    VW is giving 5 years warranty with unlimited milieage to CBU.

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  • John Doe on Dec 22, 2010 at 4:25 pm

    I pity the fools who hope the Jetta would be priced just *slightly* above the Civic/Altis.

    VW positioned the Jetta as a competitor to Civic/Altis hence the price should be NO MORE than a Civic/Altis.

    I guess Malaysian car buyers are in a sorry state after being brainwashed by our high taxes and duties, even to confuse real premium cars over other cars sold here in Malaysia. Cars like Honda/Toyota/Volkswagen are no more premium elsewhere than Myvi/Wajunk over here.

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    • x-vios on Dec 22, 2010 at 5:16 pm

      I think what Malaysian buyers are actually brainwashed is the issue of overpriced cars… it has been repeated over and over and over again. I think nobody is confused about it anymore, maybe except your goodself.

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      • John Doe on Dec 23, 2010 at 9:23 am

        A good example of confused car buyers is when they think they can finally afford a Vios/City (with a 7-9 years loan no doubt), they are a class better than Proton owners.

        Here’s news for you, a Vios is nothing more than a cheap mediocre car built to delude car buyers that they finally got a Toyota which in most cases mean absolutely nothing in other parts of the world, but only to Malaysian.

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        • Zhong Liang on Jan 26, 2011 at 12:20 am

          And don’t forget that for the price of a 70k Vios, you’d be looking at a Camry with a 2.5 litre engine and 7 airbags in the land of the free (from APs and import duties).

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    • x-vios on Dec 22, 2010 at 6:02 pm

      The issue of overpriced cars has been repeated over and over and over again here, nobody is confused, maybe except your goodself.

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    • Have u test drive the Golf 1.4 with twincharge engine + 7sp DSG gearbox compare Civic 2.0 engine + 5sp torque convertor gearbox ?

      After test drive, you won’t said they at same technologies level ……or should NOT price more then civic 2.0
      The Golf engine are so powerful & 7sp DSG are so smooth ……you can’t tell it reach 110km/h or gear shifted until you look at deshboard

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      • this doesn’t allow vw to price higher than it competitor !
        for example, do NOKIA N8 price higher than IPHONE ?
        both are smart phone and NOKIA have a better camera.
        why don’t nokia charge a more premium price then iphone ?
        both of them are flagship and same category phone!

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  • rempp on Dec 22, 2010 at 5:13 pm

    paul, i think you can put news about buses too, any bus that have good safety features? express buses are prone to accident since long time

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  • FuelEfficient on Dec 22, 2010 at 6:28 pm

    The Jetta is a viable solution considering Sedans are popular in Malaysia. If T&H is overpriced and this Jetta will be priced slightly lower or higher than T& H it will STILL be overpriced to most Malaysians.
    To get mass appeal and sales and not look overpriced is should be priced < 90 K which I think it is highly unlikely.
    Anyway there will be stiff competitions with the New CiVIC coming in next year before the Jettas Production.. an the ever enterprising Koreans with emphasis on Turbo and Dual clutch in their models..

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  • You get what you pay?!i got my lovely Polo and i think Jazz is overprice…over!

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    • Even Polo little overpriced or not really into target market since they do offer an iPad plus RM1000 discount. No such discount for the Golf buyers.

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      • walle on Dec 23, 2010 at 9:44 am

        golf offer now is discount 1% or Ipad and 1 free service. Polo now discount 2500 + 1 free service

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  • TumpangLalu on Dec 22, 2010 at 7:27 pm

    erm.. not only C lass.. E and S too… all from Pekan…

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  • gracke on Dec 22, 2010 at 8:31 pm

    not only price not much different after CKD and the most important point is lower the spec of the car to reduce the price is not mention to ‘CHEAP’. It is not a standard spec anymore, except the ‘Volkswagen’ batch, there’s nothing! It’s not matching! Feel so sad.

    Better take the Golf or Polo, real Volkswagen and quality!

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  • VW is like Potong of Europe. Anything above 100k is overpriced and arrogant.

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  • i like the current passat cc more. design is sleek.

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  • Europe and M’sia that is totally different~1st world and 3rd world.

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  • transformer on Dec 23, 2010 at 12:15 am

    Gov wont approved if VW OTR price is low…. The barrier will kept it a bay, so local can cari makan, even some Japs makes….

    guess if a 1.2TSI Polo at $60K, 1.4TSI Golf at $80K…. will tapau many already….
    Definately, one Golf for me!

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  • we will wait for VW..

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    • kamaljohor on Dec 23, 2010 at 2:32 am

      Don’t speculate on the car prices and expecting cheaper cars
      cos NAP clearly states that car assemblers can bring in cars costing above 180K
      That is the very reason why only these 2 models were introduced.
      If it was not the case then DRB would definately bring in the more :marketable” models.

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  • Remember the rules? MINIMUM RM150 000.

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    • the rules said 1.8L engine and above , vw mostly give its car 1.2~1.4 only, passat maybe 2.0L and above but not the jetta

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  • ycfoo on Dec 23, 2010 at 9:02 am

    I think they hv drop the Jetta but pick up the Tiguan? so the most of the car parts will be from CHINA?

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  • Faiti on Dec 23, 2010 at 9:08 am

    If price too low=dumping! ha ha ha. Cannot happen in this modern world.

    VW…..i like their cars very much but not many service centres know how to service cars like this n Audi.

    They should be more agressive in pushing training centres, courses n spare parts stockists.

    Heard that it takes 1 week when the car goes in for service in Glenmarie.

    VW, if you have a spare car n if you can afford it.

    If you have a tight budget, this one can giv u a surpise once in awhile.

    German spec is going to be more demanding but once it has too many local parts, the fit n finish a bit slacking.

    Example, I saw a new C class with slightly mis-aligned window seals! Of course,still miles ahead of Chery Eastar in terms of fittings.

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  • rossi46 on Dec 23, 2010 at 10:46 am

    Sharan please!

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  • jerami klaxon on Dec 23, 2010 at 10:59 am

    my take on things:

    Jetta starts from 150k
    Passat starts from 175k

    That should at least make T&H especially “tak senang duduk”…

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    • Jetta at 130K max, need to fight 408 some more ….

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    • dahlanGee on Dec 23, 2010 at 3:48 pm

      T & H are in a league of their own.
      Tell that to Proton cos they are just a small fry.
      If you open the Msian market then we’ll see
      who will tak senang duduk !!
      Ever wondered what was going on in DSZ and his
      management’s pea brain
      when VW tried to JV with them twice ???
      Zilch !!

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  • Kumar san on Dec 23, 2010 at 1:30 pm

    This VW and Hicom deal is a sign of many good things and opportunties to come.Not to mention more proper continental car choices at reasonable prices from VW.Then again,it’s VW,if you want to be one their parts or material vendors,you have to be up to their extremely strict quality control standards or they will show you the door out,like pronto.They are real sticklers for quality and proper engineering.Drive any VW and you will know this instantly.

    At least for one thing,at least an 80-90% automation levels at their assembly plants will be the order of the day,so the infrastructure to support this will be and has to be top notch.As will be with the cars that will roll out from here.Expect prices to start from 150k onwards depending on trim level and variant.

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  • greasemonkey on Dec 23, 2010 at 7:05 pm

    Make sure to have parts available,otherwise really piss potential owner off due to scarity of certain s.parts.

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  • I freaking love the new Jetta!if 150K i’ll save money to buy it!

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  • With Proton, VW wants 40% share, with DRB only 30%????

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  • Unforgiven on Dec 24, 2010 at 10:41 am

    Please go and check out the global VW website especially the one in the US. The Jetta is an entry level car which the price is cheaper than a Civic, Lancer and Corolla.

    If VW is able to make it as an ASEAN car, will the price really be that good?

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    • Jetta have many version in the world
      Look at the UK right hand spec …..it more epensive then civic

      Jetta with 1.4 TSI 160ps/240Nm 7sp DSG = start 19,850
      Civic with 1.8 iVTEC 140ps/174Nm 5sp auto = start 18,350

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  • firefox on Dec 25, 2010 at 9:25 pm

    it should be no problem for CKD spec, QC should be under control from VW, but it is CKD spec will offer the 5 years warranty where unlimited mileages?..wait and see.
    and for after sales service, should be not a problem, now day more and more 4S is open, only KL already got 4 4S, if still cannot get the parts, go SIN to get it..lagi murah.

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  • Trans on Dec 26, 2010 at 1:05 am

    Guarantee you the SOHC 8Valve 1.6 and 2.0 will go in there. Check out the entry model Jetta in USA. 2010 car still 8 valve SOHC engine!

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  • Trans on Dec 26, 2010 at 1:07 am

    90K i think is likely since in USA Jetta and Cruze is about same price. consider the CBU cruze is 90K CKD Jetta can be even cheaper.

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    • I don’t VW will offer US spec here
      Look at current car on sale list ……it should be UK spec

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  • My Polo 1.2 SOHC could tapau Vios and Proton 1.6 or 1.8 DOHC 16V engine,sorry make their cars dirty :)

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    • firefox on Dec 29, 2010 at 3:04 pm

      haha, is true, TSI or TFSI ma, normal DOCH or Vtec also cannot compare it. different standard and technology already.

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