Volkswagen AG has applied to set up its first assembly plant in Thailand, reports Bloomberg, citing people familiar with the matter.
The German carmaker is seeking to participate in a government programme that offers tax exemptions for carmakers investing at least 6.5 billion baht (RM656 million) in local manufacturing, said the sources, who did not want to be named because a final decision has yet to be made.
Also, annual production must reach at least 100,000 cars by the fourth year of operation, and manufacturing must start by 2019.
This is consistent with our northern neighbours’ Eco Car programme, which includes vehicle assembly, components and engine production. Carmakers had until March 31 to apply, the report states, citing a ministry statement from last October.
The Eco Car programme’s second-phase requirements include (for the vehicle) a fuel economy under 4.3 litres per 100 km, CO2 emissions under 100 grams per km, engines displacing 1.3 litres and under (petrol) or 1.5 litres and under (diesel), plus Euro 5, R94 and R95 compliance.
Throw in a minimum investment of 6.5 billion baht (RM656 million) and a minimum production of 100,000 units per year by the fourth year of operation, and the excise duty incentive given is 14% (normally 30%); dropping to 12% if the engine is E85-compatible.
First-phase Eco Cars include Hondas Brio and Brio Amaze, Mitsubishis Mirage and Attrage, Nissans Almera and March, the Toyota Yaris and the Suzuki Swift – all of which are powered by 1.2 litre petrol engines in Thailand.
Malaysia missed FDI again
True that bro. Sigh. Sometimes we wonder, when will it change..
It will never change under the current people who control the Government. We need something drastic like a change of the ruling party.
Thanks to Dr M the father of Thailand automotive industry…
U all don’t want VW production plant in bolehland..Why the fuss? don’t tell me that u guy actually want VW local production..
We should be the expert or high level people that managed the automated/advanced plant. We have the knowledge.
“6.5 million baht (RM)”? Did something get left out there, Jonathan? I don’t think Thai baht has become 1:1 with RM yet eh?
yes 1:1 100k baht = RM10k
There was no equivalent RM figure when I looked at it. :)
Malaysia gov should do something about this…. hit them with something sweeter than what the Thai gov can give. then our economy can improve… gaining from less tax is better than no tax (earnings gone to Thai). Instead of waiting car makers to approach gov, we should approach car makers and offer what we can.. same goes to other industry.
I think the time for us offer tax exemption to foreign companies are long gone. We need the $$$$ from them.
If we offer them with free tax exemption – what benefit do we get in the immediate future? Socio economic benefits – employment for the locals or for the Indons that we have to bring in to work at our factories???
Imagine with the unrest and they still choose Thailand. It clearly shows our government’s automotive policy is as good as using it for wiping your arse!
Their gain is our loss…we deserve it wen we hv monkeys runing da show
what have Malaysian authorities achieve?
Twin Tower and Proton is our proud achievement!
spotlight handling the MH370 lah what else.
Showing the world we have BOMOH KING that can see things that satellite dont.Need to ask Bomoh what is the future of Malaysia Auto industrial like?
Nothing Sir.Full stop.
Cheers
People got clear standard on everything especially tax exemption.
Our NAP has nothing but list of CO2 emission, yet the carmaker need to settle the tax exemption in a private meeting with government officials.
No wonder no one interested to come.
Settle in private meeting? You think meeting up your mistress?
mistress also run away,pui!
Thanks to the NAP, we are losing out the FDI again to Thailand & Indonesia…
Malaysia is full of corruption. Bye bye Malaysia.
What the diff with thai govt? Look same to me…their current PM is caught in subsidy scandal,…the previous PM accuse of power abuse…former PM taksin oso corrupt…indo? even worst corrupt country than bolehland…the oni look not corrupt country in ASEAN is for sure Singapore
Yes, you are correct.
Thai so bad also automotive players all flock there.
Makes Malaysia look even worst
You are doing real good shooting yourself in the foot.
That obviously mean thai n indo bribe much more than boleh bribe so that car maker open plant in their country..I don see I’m shooting myself..it look like u shooting urself with that statement..
I don’t understand why you compare ourselves with among the worst and not with among the best or just say better la….this is backward mentality la bro.
Why are most of your response so typically comparing with countries in areas that are either same or worse off then us? Compare with things that they are better. No one said their government is perfect, but hell they certainly do have a far better automotive policy then us. Compare la that. Not “what so good about thai government. they are just as corrupted..blah..blah” How to progress?
From top till down wat comment did u see?
Malaysia is full of corruption. Bye bye Malaysia.
Like or Dislike: Thumb up 36 Thumb down 3
kzm (Member) on Apr 02, 2014 at 3:24 pm
What the diff with thai govt? Look same to me…their current PM is caught in subsidy scandal,…the previous PM accuse of power abuse…former PM taksin oso corrupt…indo? even worst corrupt country than bolehland…blah..blah…comparing…no one cares about other countries that are worse…etc…lazy to explain over and over again….
that’s why they go crazy and now reelect another leader. Better than sitting still doing nothing like us in Malaysia. Other manufacturers also see more hope in them than us. They corrupt, people at least do something. We corrupt, we computer rage. Thaksin corrupt, they despise him. Ours? Don’t need to say la. Don’t be blind please. Their blood spilled may not be a good thing. Chaos and violence but their love for their country and their voice can threaten the leaders also. It isn’t the best resort to settle a dispute but at least something is happening. I’m not saying it’s the best way but at least there is a drastic movement. Malaysia? Don’t need to say la.
While in Malaysia nothing is conclusive yet… FDI is forsaken for the accumulation of wealth of the selected few / cronies.
There goes another one up north.
It goes to show, even with the Red and Yellow Shirts fighting, auto companies do see the potential in setting up shop there. What gives?
Our policy makers should be concentrating in getting al these investments rather than focusing on someone’s gay-ness, comparing the size of my cable to your cable, their own money making projects and etc….
Based on yesterday newspaper, Malaysia education level is lower than Vietnam now. VW is at least top 3 in the World. The next generation will definitely feel the pain, especially those under protected now. It’s globalization world now.
I know lecturers who tell me that they cannot fail certain people, thus we have will soon be the first country in the world to have the highest educated population with the lowest standard. Malaysia Boleh….Malaysia Boleh!
I did fail one of my paper in my uni days…how?
Shows how bloody stewpig you are…..
Cheh, just an assembly plant.
We already have it loooooong time ago at Pekan.
what a shallow minded kcng. appalling.
Thailand again. why not Indonesia? of course definitely not Malaysia. Wake up! Malaysia gov.
Congrats VW, “R.I.P Automotive Malaysia”. We loose Job opportunity, Investment :(
Malaysia prefer to have more recond car in the market since earning more taxes.
Malaysia will say we don’t need all these companies setting up company here.
Our domestic market is very strong and resilient.
And we hope those who do not agree with me to go back to your countries of origin.
can’t take this anymore…arrgh
malaysia is just so bloody lembap
Our government offer of customized incentive is just
an avenue for more corruption.
It means the playing field is not level.
Imagine a football game with different rules for every team.
good move for our NAP…one more FDI drain to kingdom of smile…
We will never change & never learn. Sustaining Proton as national car maker is the No.1 priority even at the expense of losing billions of FDI to our lucky neighbours who are laughing all the way to the bank. We are such good & generous neighbours. Well done Mal & keep up the good job!
I honestly dont think thy chose thai bcos its beter…i think when thy submited their application to msia some guys here wnted so much kickbacks that it was nt feasible for thm to b operating here wer ppl at da top CONSTANTLY ASK FOR FAVOURS… in thai thy r free to do anything its a proper open market…here thy wil eventually b some political interferance in watever biz bcos someone want to ‘join’…
VW looking for own manufacturing plant is no secret in the industry. There were rumors that Proton plans to move to Tg Malim so VW can buy over the Shah Alam facilities. Now VW decided to move to Thailand meaning they have finally given up the plan to set up manufacturing plant in Malaysia. Viva Proton
Thank God they were not able to purchase our Proton facilities!
One shall stand, one shall fall….
When I read this piece of news, it makes me bit sad.
Let me say, I was hoping that VW would expand it’s capacity in Malaysia.
You see, I’m one of the many vendors that’s supplying to HICOM for the manufacturing of VW Cars. And the VW facility there is one of the most modern in the whole of Malaysia.( I’ve seen plenty )When the German guys came in , they brought with them lots of knowledge and equipments. And our ordinary folks at Pekan, benefited tremendously from it. From the lowly operators to engineers. Even d tukang makcik found work !
I think our workforce is actually ready for such huge investments. Land are plenty there to build huge factories and folks from around Peramu, Kuantan even Rompin can find work. And they are some if the nicest folks you can find anywhere.
But all this was let down by d recent NAP, I guess it was not transparent and clear in execution. It didn’t make it clear why foreign companies should invest in Malaysia.
I’m biased in this case, as it helped me put food on d table and created employment for my staff.
I do hope they address this VW issue quickly. If not, our loss becomes someone else gain. BTW- if u own a VW , good chance are it was made using some products supplied by us.
Good night.
Thai : ” Thanks to Proton, Thanks to Malaysia Gov”