Volkswagen Group Malaysia (VGM) MD Armin Keller also let slip during yesterday’s media briefing that the company is looking to export the Volkswagen Polo 1.6, Polo Sedan and Jetta – all of them locally-assembled at DRB-Hicom’s plant in Pekan – to countries around ASEAN beginning from next year.
Keller stated that these models now incorporate 40% local or ASEAN content, a requirement for cars assembled in ASEAN to gain import duty exemptions when exported to other countries in the region under the ASEAN Free Trade Area (AFTA) agreement.
Because the cars currently being produced in Pekan are right-hand drive, VGM is currently focusing on RHD countries such as Thailand and Indonesia. Keller, however, did not rule out producing left-hand drive cars for countries such as Vietnam and the Philippines if the business case “makes sense.”
Despite reports that Volkswagen has applied to set up an assembly plant in Thailand under the second phase of the country’s Eco Car scheme, Keller insisted that the automaker remains committed to Malaysia as its regional production hub. He added that while VW’s application has indeed been approved by Thailand, it has yet to make a decision on pushing ahead with the plan at this moment.
Keller maintains that DRB-Hicom remains a close partner for the region, saying that while Volkswagen does not hold ownership over the Pekan plant, it still has control over production levels, and that it has a number of its own personnel in the factory for training and assistance, making sure that the quality of the cars produced are up to par.
These comments add to recent developments that appear to strengthen Malaysia’s presence in the ASEAN region – Prime Minister Najib Tun Razak recently stated that Malaysia and Indonesia will be working on an ASEAN car project, although it is unclear if this is related to DRB-Hicom’s Asian Car project in which VW is involved in.
Currently, Proton, Perodua (which exports its cars to Indonesia badged as Daihatsu models), Hyundai, Mazda, Peugeot, Volvo and Subaru are exporting cars from Malaysia to other countries in the ASEAN region due to the favourable tax breaks.
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It would be interesting to learn how VW managed to get 40% local content.
not that hard..seating, plastic part, visor, tyre, rims, bulb, headlight, backlight, bolt n nut..
Well done, win win situation. People get cheaper VW, local assembly bring in more revenue.
No point doing stupid things like 100% self designed car. End up A LOT A LOT of money burnt with poor build quality and sales.
For 2013 cars, We have RM6k discount now, it gonna be RM12k discount in 2015.
Thai/Indon: thanks msian. We can buy imported from msia, polo myr 40k & jetta at 60k
Stupid msia pls continue serve hp loan 9yrs & paid for double price min for the same what we get from your country. Donate your hard earn money of your 9yrs hard work lifeto govt.
Haha
The CKD Polo Sedan and Polo 1.6 are probably the safest (in terms of choice, not safety package) Volkswagen offerings at the moment, in light of the brand’s vehicular problems and strained service network.
just lack of ESP… else its the best value for $$ VW
So to the DRB-HICOM bashers out there, VW will still make Malaysia its ASEAN Hub anyway….
It remains to be seen whether these Malaysian-assembled Volkswagens will be available in LHD versions for the Philippines & Vietnam. Currently, Jettas & New Beetles sold in the Philippines are imported directly from Volkswagen’s Puebla, Mexico manufacturing facility, while Polo Sedans are sourced from India. Tourans, Tiguans, & Touaregs are imported from Germany.
Seriously is quite difficult to differentiate front design of polo sedan vs Jetta. Looks so similar if you compare the 2nd and 3rd pic here. WV really out of idea. Zzzzz
It’s intentional that they want to design it so similarly. Their design philosophy is a different approach from the Japanese’s very different face for each model that we’re so used to but now we’re seeing a trend towards a common design theme for Japanese cars too, like the recently launched Toyota Corolla Altis and Vios as well as the Nissan Sylphy and Teana.
You tell me..just compare Polo, GTi or Golf..how difference are they from each other?
True that it’s not that different in aesthetics, but they definitely have difference in terms of drive value and several additions, etc.
beribu – ribu tanniah drb for 40% local….
i thought more cos cannot sale in malaysia…need clear stock overseas
VGM, you just need 1 more step to kill Honda City’s sale..
-> Put in the ESP in Polo Sedan and all your VW line-up..
You have a good car, but lack of 1 feature, you are that close to narrow the gap..
VW should not compromise on safety
I wholeheartedly agree. That’s the only major fault I see that the CKD Polo lines have.
Okay, I was never a big fan of VW, and VW Malaysia seems to be taking inspiration from UMW Toyota for poor safety standards. But I must admit that VW Malaysia is doing some good stuff lately, but whether or not it’s enough to clear their now tarnished image, only the sales will tell.
If VW Malaysia really does mean well, and hope to make Malaysia their preferred regional hub instead of so-called Detroit of Asia (Thailand), then you guys have my vote (just like Motor Image Subaru and Mazda with their CX-5). It’s rare that a foreign company chooses Malaysia as their regional assembly hub with exports in mind. Most have chosen Indonesia and Thailand. Malaysians should realize that these foreign companies are giving us jobs and investing in our (now severely indebted) economy. They deserve our support.
(…CX-5, Mitsubishi with their ASX and Volvo with a large proportion of their lineup.)
I agree. These companies are contributing positively. Volvo also made Malaysia its export hub (local assembly since 1967, first locally assembled car in Malaysia being the Volvo 144) for this region for so many years now but we don’t really hear much about that.
If it sounds like I’m a Volvo salesman, I’m not. I just really like the brand for their way of doing things and their awesome, awesome cars.
Yeah man Obviously, it’s so sad that most Malaysians only think the term ‘local cars’ refer to Proton and Perodua. Some are even at odds with Naza. It shouldn’t be that way, because really, the huge majority of cars sold in our market are not really Japanese, Korean, German etc.
I find it extremely amusing when Toyota, Honda and Nissan owners say they bought their cars for ‘Japanese engineering / efficiency / quality’, when in reality almost all the under RM200k Japanese cars sold here are assembled in ASEAN countries, mostly Thailand and Indonesia, but also right here in Melaka (Honda) and KL (Nissan) plus more. Our ASEAN spec Japanese cars are downgraded to match our poor standards; safety is poor, exhaust emissions are worse, fit and finish is nowhere near JDM levels, generally, everything is worse, the only good thing is that they’re cheaper pound for pound (without taxes) thanks to low labour costs.
Fortunately, Malaysian BMW, Mercedes, Audi etc. owners can tell the difference. ”It ain’t truly German if it ain’t truly from Germany.” And this is reflected in the resale values; used CBU German cars are worth much, much more than CKD ones which are assembled in Malaysia.
Volvo Malaysia is just cool man. It’s hard to find someone who has even heard of Swedish Motor Assemblies (SMA). They were there for us then and still are today. Most of the younger generation wouldn’t know, but the older folk will remember all those boxy Volvos which were everywhere in Malaysia, right up until the 80s when Proton was founded and taxes made new Volvos all but out of reach.
Even in 2013, SMA Volvo’s sales in Malaysia were a mere 533 units (Mercedes managed 5,413 and BMW did 7,057). If I had the money, I wouldn’t buy a BMW, Mercedes or Audi…. I’d get a Volvo (V40 preferably), or maybe a Jaaagggg (I won’t lie, I really like the XF). It’s reassuring to know that your purchase will be financially supporting the men and women who’ve been supporting us all these decades.
In a way, I do have to say that Proton is the only true Made-in-Malaysia car as it is developed almost completely by local talents (almost completely because some essential parts, like the gearbox [both the CVT and MT], are still reliant on foreign parts makers). However, I think it is a mistake for people to diss locally assembled foreign cars and rebadges because those are assembled by local talents too. Like you, I believe that the contributions made by these foreign companies setting up shops and plants in our country shouldn’t be underestimated but should be appreciated. They provided jobs when the country was young and finding its footing, brought in expertise to train the locals and help drive the economy upwards. Furthermore, companies like Volvo were eager to help the fledgling country realize its dreams of kick-starting an automotive industry.
Volvo only sold 533 units in the whole of 2013??? That’s beyond sad…good grief. I only got to know more about Volvo’s legacy in Malaysia after a few publications on another Malaysian auto site.
But is this the Aero we’ve come to know? Buying a Volvo or Jaaagggg? Haha! I agree with your sentiment, though. Volvo deserves to see more support from Malaysians. From what we’ve seen of them, Volvo cars are real-deal premium cars but they are still relatively under everyone’s radars who are shopping in the premium car market, even below the Japanese luxury marques. Also, I think the stigma against Made-in-China products have somehow affected them through the Zhejiang Geely ownership. The people who follow this stigma are extremely short-sighted, in my opinion, as not all Made-in-China wares are crap quality. Volvo has had more growth after the Geely acquisition than they did under Ford ownership.
Now, for the “if I had the money” section. No German 3 for me, either. My Volvo of choice would be the S60 or the XC60 at the moment, but only after they’ve been updated with the Drive-E powertrain. The V40 Cross Country also would definitely be on my radar once it is updated with the Drive-E powertrain and AWD.
Engine and gearbox looks good in the paper but at such price I hope the interior equipment could be better…
It has been all the while VW has been planning for AFTA 2015, so we see a another round of prices adjustment in 2015 and this should be good for consumers.
this time we’ll see foreigners mengamuk at VW HQ. awesome!
VGM export from Malaysia is just temporary.
Once their factory well established in indo and thai.
Our VW will becomes CBU from Thai.
Lets wait and see……
No lah! How can it be temporary? If not they wouldn’t make such an announcement.
I do agree that VW Malaysia has been through its share of ups and downs this year. But I too commend them on working to fix their issues the best way they can. This collaboration in Malaysia sounds very promising.
yup polo sedan needs ESP. nuff said.