Volkswagen’s home market in Europe is in decline and the region’s shrinking demand shows little signs of recovery this year. The market has shrunk by 8% last year and the start of 2013 continues this six-year-long trend. To overcome the gloom over the European market, Volkswagen AG has plans underway to boost investment elsewhere.
The expansion/contingency plan (call it what you will) includes building at least 10 new assembly and manufacturing plants outside of Europe, according to a Detroit News report. Seven of the 10 will be in China alone, where Volkswagen already owns a total of 12 plants so far. The next one will be built in southwestern China, confirmed Volkswagen Chief Executive Martin Winterkorn.
In the US, Volkswagen is considering a second base to operate alongside its existing plant. Following the successful US Passat (pictured above outside the Chattanooga plant, where it’s built), more models designed specifically for the American market will be introduced, chiefly an MQB-based full-size SUV already previewed by the CrossBlue Concept showed in January.
While the remaining two plants are still up for discussion, Volkswagen isn’t about to abandon its European roots just yet. Within the next three years, it will invest a further €33 billion in Europe, where over 70% of its employees are based.
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inb4 go to thai or indon or pinoy, then we all must syukur n thank tun bapa permotoran thai/indon/pinoy.
meanwhile in malaysia…
In Bolehland …… still stick to 2 kura-kura racing – Juara Kampung No. 1 versus Jaguh Kampung No. 2 ……..
Bad news for those who expecting cheap german ride but may end up the car coming from tom yam land or other asean country.
What is the bad news?
The bad news to cronies and AP King is after GE 13, Rafizi Ramli will in charge of “skinning these cats” ……
more VW plant in south east asia perhaps??
It won’t be in Malaysia because of Dr M NAP policy.
“While the remaining two plants are still up for discussion ………”
– one of the plants is waiting to take over Tanjung Malim plant …..
I hope they fix their DSG gearbox first, my friend’s Golf TSI’s DSG box just got replaced under warranty…
http://www.bloomberg.com/news/2013-03-18/volkswagen-to-recall-cars-in-china-over-gearbox-defects.html
“Volkswagen Group China and its two local joint ventures announced last week that they will extend the warranty of the direct shift gearbox (DSG) to 10 years or 160,000 km to restore consumer confidence after rising numbers of complaints about the much-touted dual-clutch transmission.”
http://www.chinadaily.com.cn/cndy/2012-05/28/content_15398554.htm
Bolehland ada masuk kah dalam list??
at the end you guys are not the one who become their employee anyway. it’ll fills with migrant workers. or you guys will to be paid RM1500/month? checkout how much honda/toyota pays their workers in thailand/indonesia. stupid.
Sometimes I don’t understand the relation between NAP and not opening a car factory in Malaysia.
NAP is a tax system for COMPLETED cars to be sold.
NAP is not a tax system, to be imposed on cars to be manufactured.
The reason why most car company prefer other ASEAN countries other than Malaysia is due to their cheap labor.
I’m pretty sure each and everyone of us is keen on the so called minimum wage thinggy. More reason for foreign auto company not wanting to open their factory in Malaysia.
And no, I’m not suggesting that Minimum Wage is bad. Just wanting to point out how NAP doesn’t effect decision of car makers not wanting to open their factory in Malaysia.
It is not accurate to equal NAP to tax.
NAP is a policy to steer our automotive industry on overall basis be it proton, be it perodua, be it vendors, be it foreign marques.
NAP is supposed to help Malaysia to positioned itself attractively in this region to lure investment in automotive related businesses.
While not denying to cost of labor is one of the factor, NAP failure could also be a major factor why Malaysia is not attractive..
Just MHO..
Honest opinion doesn’t count. Like you said “NAP failure could also be a major factor why Malaysia is not attractive..”.. “COULD”.. not concrete.
You are so naive about NAP unwritten rules: –
1) Anyone want to set-up factory at Bolehland to manufacture cars. The engine capacity either more than 2.0L or below 1.2L. This is to make sure our cronies infested Jaguh Kampung No. 2 not affected.
2) For those set-up factory here, they must export at least 80% of the car.
3) How about ownership – at least atas angin, 30% must go to cronies-putra or AP Kings.
Who on earth with business savvy car manufacturer, want to set-up factory here. Talk about the labor cost, car is not cheap toy product, it is not an issue here or any part of the world.
Why Toyota, Honda, Hyundai, VW, BMW, etc can set-up factories in US? Some more selling at lowest market price with the best specs! The answer to all these is NAP crap policies and economy of scale!
1) If what yous said is true, is a point of contention. Just like what you said “unwritten rules” which you can’t concretely prove it.
2)Even if they have to export 80% of it, that’s the whole point of these car manufacturers to set up factory, in any ASEAN countries. So these factories will become a hub for ASEAN market. Not the market, for which that particular country which the factory is in alone.
3)How sure are you about that. And how sure are you that this are not practiced elsewhere.
And yes, you just answered yourself to why there are factories in US. “economy of scale” . Which in its correct grammar is, “Scale of economy”
After all bro, just like you said “unwritten rules”. Which no one knows whether it is true or not.
economy of scale is correct..
read and learn..only then you can make a better judgement on the policies of this country.
Cheap labour? Then all new car factories are located in Laos and Myanmar? I never heard of?
well are indonesia, thailand and philippines has higher labor cost than malaysia?
How many citizens Indonesia and Thailand have?
I don’t know. You tell me Mr. Why Aren’t Car Factories Being Open In Myanmar and Laos.
But one thing for sure, they have lots more workforce than in Malaysia. And for that their labor is cheap, because everybody is fighting for the same slice of cake to live life. And don’t tell me business moguls won’t take this as an opportunity to reap more profit from this i.e. cheap labor.
DSG? No thanks
Toyota Hilux 4-speed gear is BIG YES!
You obviously need to keep the tow truck operator phone no. on your speed dial