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Volkswagen to introduce new sedans once Proton deal is finalised

Volkswagen’s head of international sales Kevin Rose says talks between Volkswagen and Proton are now at a fairly advanced stage, and both parties clearly know what they would want from such an agreement. Volkswagen said it would also work within the Malaysian government’s March 31st 2007 deadline.

To Volkswagen, having control of the manufacturing facility is essential. “For us as a brand, it’s important that we can always say made by VW, or built by VW. Even in China, where for legal reasons we are a minority partner, we still have great control over the production, assembly, design of our products, and that’s incredibly important for us,” stressed Rose. Without that manufacturing control, the partnership will not happen. I sincerely hope with manufacturing control comes supplier control and the license to show problematic suppliers the door, regardless of know-who. Nevertheless, Rose is confident the partnership will be agreed on soon, perhaps even next week.

One of the first steps that Volkswagen will take once the partnership is finalised is to introduced a new small sedan targetted at the Asia-Pacific region. This type of regionally targetted engineering is something similiar to Toyota’s ASEAN Hiace/Hilux/Innova/Fortuner platform, or Nissan’s Livina Geniss. This new Volkswagen small sedan will be made in Malaysia at Proton’s plant. This will be followed by a bigger sedan to mark the opening of Volkswagen’s Singaporean showroom.

12 days, or less than two weeks, to March 31st.

47 Comments »

  1. waimak said,

    March 19, 2007 @ 4:54 pm

    Good luck everybody!

  2. jtshin said,

    March 19, 2007 @ 5:00 pm

    Seems like this time the agreement is for real… Good luck to both parties. Malaysians will have more CKD VW cars choices if agreement is made…

  3. sewell said,

    March 19, 2007 @ 5:14 pm

    once is deal, i think this suite malaysian because our people here like european car. european are class, where we can find all those thing in our poroton waja and gen2

  4. Infinitt said,

    March 19, 2007 @ 5:47 pm

    good luck both.!

  5. I my said,

    March 19, 2007 @ 5:50 pm

    is it the Lupo 1.4..??

    anyway hope the deal will go well for VW & P1. But for cheaper $$ car that will be anothers story…

  6. ilmondo said,

    March 19, 2007 @ 5:56 pm

    goodluck all!

    how bout new jetta? or all new ‘waja’ perhaps? sedan seem 2 sell better ere… but janji its cheap, nice n reasonably good! goodluck again!

  7. kruzer said,

    March 19, 2007 @ 6:00 pm

    after 1st time fiasco, not so optimistic. THink that P1 will still tarik harga. However, VW will have all the time. They may even end up getting to buy P1 at RM1. :)

    However, do wish that this time the deal can go through. Looking at the current situation, P1 should know that it cannot survive alone without a big brother!

  8. REDDEVIL said,

    March 19, 2007 @ 6:11 pm

    I personally won’t do any favour to either party unless a concrete agreement has been signed.. As all we know, VW producing good cars but not with cheap price, I fear most of us will not be able to buy one even it’s CKD. Thanks to the ridiculous tax structure.. WE DESERVE BETTER CARS WITH REASONABLE PRICE…

  9. Hikaru said,

    March 19, 2007 @ 6:14 pm

    I think if they reproduce the Jetta it would compete directly with the Vios and City and split the pie three way. If VW can produce it at Waja price than all the better. So long as they put Proton back in to profit, I don’t see how this deal can be bad for M’sia. Except maybe to the Malaysia pride, proton which doesn’t worth much incidentally.

    Still i am not holding my breath just yet.

  10. kendo said,

    March 19, 2007 @ 6:19 pm

    GREAT!

    at least VW will re-badge SkoDA,
    (like naza 206…)
    latest look at proton price,

    unlike CHEAP-stingy” Japan-make of TOYOTA clone-of what?

    Avanza, Innova,
    = third world class products!

    Don’t u think so?

  11. noAP4u said,

    March 19, 2007 @ 6:19 pm

    “For us as a brand, it’s important that we can always say made by VW, or built by VW….”

    Does this mean that, assuming the tie-up materialises, future Protons will have a “built by VW badge” stuck up their arses? Just like all Naza models e.g. “engineered by Peugeot”, “Licensed by Kia”

    Not that I mind, really.

    Hope that Proton can finally produce REALLY new models more regularly.

  12. Joe v2.0 said,

    March 19, 2007 @ 6:25 pm

    ” I sincerely hope with manufacturing control comes supplier control and the license to show problematic suppliers the door, regardless of know-who.”

    this thing should been done earlier, this has been the cancer that is killing proton this past years. kick out of those shitty suppliers, but ada berani kaa? kroni banyak maa..

  13. silverfish said,

    March 19, 2007 @ 6:43 pm

    Paul; sedan??? Typo??? Those examples aren’t sedans.

  14. Joe Ooi said,

    March 19, 2007 @ 6:44 pm

    I sincerely hope with manufacturing control comes supplier control and the license to show problematic suppliers the door, regardless of know-who.
    ————
    This is the long overdue statement, yes we as consumers are getting a raw deal from the P1-NAP-Cronies-Bad Suppliers for way far too long.

    This is the first house cleaning VW have to carry out if the agreement is materialise!

    The likely outcome of this agreement is the abolishment of NAP or revamp its policy as its existence is no longer relevant as P1 no longer consider as national car maker (this is how our bolehland defined national project based on majority share ownership).

    Time and favour no longer at P1 side as any foot-dragging will further damage its reputation and aggravate its current loss making! Or as some blogger put it may sale at RM 1.00!

  15. Paul Tan said,

    March 19, 2007 @ 6:45 pm

    silverfish : i was referring to regionally targetted car engineering, not the type of car.

  16. proton GL said,

    March 19, 2007 @ 6:45 pm

    this a start for a ‘paradigm shift’

    every bit of parcle that makes proton, reflects proton,
    its a MUST for proton to follow a strict rule, and ‘Achtung!’ decline any component that is not up to the specifications,

  17. silverfish said,

    March 19, 2007 @ 6:52 pm

    Paul; I thought so, but that sentence is confusing.

    Anyway, IF and WHEN VW gets into the mix at Proton, I hope the first thing they do is introduce a small family car based on the Polo perhaps, putting it right into the Vios/City segment. Preferable with a much more affordable price tag.

  18. auctioncenter2u said,

    March 19, 2007 @ 6:52 pm

    MAYBE is another ROUND of Share price BOOST-UP rumors. After the share price went up high, some people from VW or Proton or the G will say SORRY no SUCH things, WHO SAID that? SEMUAnya RUMORS…CUMA Rumors………JANGAN percaya.

    POPO MAMA…….until WHEN?

  19. Joe Ooi said,

    March 19, 2007 @ 8:10 pm

    Wah, cuba “goreng share jadi panas” ah, too bad ……………

  20. hotwheeler said,

    March 19, 2007 @ 8:39 pm

    can get golf gti cheap ar? hehe..

  21. transformer said,

    March 19, 2007 @ 9:15 pm

    A way to clear 2005/06 stocks. ka?

    Anyway, Rakyat shall wait until April Fool days to see are we(Rakyat) the fools again….!!!

  22. mofo said,

    March 19, 2007 @ 10:05 pm

    Good luck.

    Just wait and see how la :p Anyway 12 days to make up the deal ? i think they might not able to make it on time. Transformer might right, end up with April Fool and postpone on announcement date. But P1 will not let go the deal so easy.

    But to those have money, TG Malim is good place for investment right now.

  23. e-nabilll said,

    March 19, 2007 @ 10:13 pm

    wd it be under vw or proton badge?i tink the deal has been done behind the curtain,maybe thats y thy r already talking and planning for the ASEAN car…

    and if its anyting beter looking than innova/Fortuner/Avanza thn its gonna hav a market! man those Toyota ASEAN cars look horrible….how Innova was given a green light to be made is beyond me! no offence for those who hav it !

  24. acbc said,

    March 19, 2007 @ 10:15 pm

    Don’t care where the next will be made as long it is not Proton on the badge.

  25. funbox said,

    March 19, 2007 @ 10:34 pm

    Yes… We want reasonable price quality driving machine! Pls stop fooling us with unreasonable taxes for Potong’s survival!

  26. mits27 said,

    March 19, 2007 @ 10:39 pm

    Just hope the car price in malaysia will drop again, IF proton has tie up with VW, already fxxk up with this ridiculous price in malaysia!!! US36K to buy honda civic 2.0, same price for G35 coupe…

  27. skoda said,

    March 19, 2007 @ 10:41 pm

    dunno what you guys have been smoking all this while but here’s what’s gonna happen.

    you’re NOT gonna get VWs with P1 badge.
    you ARE gonna get the Skodas with Engineered by VW badges at P1 prices!

    Skoda Fabia = Wira
    Skoda Octavia = Waja
    Skoda Superb = Perdana

    (oh yeah - minus all the trimmings cuz those will drive the cost up too high).

    and then they are gonna use Msia to export these re-badged cars and flood the entire ASEAN market.

    with all the VW dealerships sprouting all over the country, tough luck, you think VW gonna let you have their premium brand (Passat/Golf) at local prices, you gonna have to start dreaming (or smoking more of ‘that’ stuff!)…

  28. engtaokia said,

    March 19, 2007 @ 11:13 pm

    hope this is for real…i want my Touareg and Golf R32…

  29. cyborgx said,

    March 19, 2007 @ 11:13 pm

    Obviously they are trying to goreng share. Once the deal is finalised, it has long way to go before introducing new cars to Malaysian market. I suggest you all do nothing and wait till they enter preliminary stage where they produce new models.

  30. TESko said,

    March 19, 2007 @ 11:15 pm

    Joe v2.0 - i agree with u fully. It should’ve been done earlier and if that really happen i think proton don’t have to beg outsiders to inject capital. VW definately tak berani to show those parasite supplier the door, bcoz they are link to the politician. the statement is made probably to gain back ppl confidence on Protong’s Quality. Well i hope they publish those suppliers they ‘goreng’ in all the newspaper so that, we will know who the owners of the company are.

  31. cbljkkj said,

    March 19, 2007 @ 11:18 pm

    The only thing that I can derive from all these statements between VW and Proton and the manufacturing plants is VW would only probably want the plants such as Tanjung Malim for their local reproduction of their cars but generally not interested in Proton itself.

    It is because Proton has these plants thats why they want control over them. All in all, it is most likely to their advantage and maybe not Proton’s. If they acquire access to their plants, they would spend less on importing the cars and assemble them here making it more cost efficient.

  32. LittleFire85 said,

    March 19, 2007 @ 11:39 pm

    Yes, i knew that for a long time already. That why VW is taking P1 manufacturing plant. They want the advantage of Japan and Asean free trade to help them to show this world what is VW. Anyways i think it’s benefits to all of us. When they control the production, Quality can be more better and even equal with Japan standard. I think the sedan either is the polo, or golf family. But my bet in on jetta or golf, then passat will coming in for larger sedan. Even my father VW beetle 1971 works well until today with it’s 1.3L caburatted air cooled boxer engine. Who can invent such an engine except them during that time? I believe their capability, and they are from German. German is the best engineering country in the world, where a lot of automobiles giant and technical spare parts companies like Bosch, Luk are from there.. In my mind, Europe cars is the best in the world then follow by Japan and US. Volvo best safety, Porsche best sport car, Mercedes benz best luxury car…

  33. aesthari said,

    March 19, 2007 @ 11:40 pm

    Here’s hoping…. I want nice and cheap (well not cheap, but reasonably priced) Volkswagens!

  34. Dogster said,

    March 19, 2007 @ 11:46 pm

    please improve the quality of the cars proton. tHats all we want…

  35. cbljkkj said,

    March 19, 2007 @ 11:46 pm

    Can’t argue with the VW Beetle, it was designed by Erwin Komenda who was Porsche’s chief designer. Volks-wagen stood for “People’s Car”

  36. honda_driver said,

    March 20, 2007 @ 9:09 am

    “i think proton don’t have to beg outsiders to inject capital”

    i dont think proton had to beg anyone at all.. everyone was knocking at their door asking to be let in.. the only problem was, there were too many barriers in place.. but hopefully now, those barriers are being taken down, and something good will come out of it.

    Its long overdue for proton to get a foreign partner.. all the worlds largest car manufacturers are tied up or partnered with someone or another. I think proton is actually one of the last independent mass-manufacturers still standing alone currently.

  37. I my said,

    March 20, 2007 @ 9:34 am

    but if VW made the car here… sure kena Tax kau kau by other countries… as we still hv this APs issue.

  38. hotwheeler said,

    March 20, 2007 @ 10:06 am

    last night, asked somebody in proton. he said they are going to produce vw phaeton (end of march) followed by golf n toureg….but still not confirm..

  39. layman said,

    March 20, 2007 @ 1:46 pm

    Proton’s shares price now up RM0.15!!

  40. kei9 said,

    March 20, 2007 @ 2:06 pm

    yeah !cheap pricetag now coming to you !

  41. topgunthang said,

    March 20, 2007 @ 5:20 pm

    i think its gonna be more or less the same. sure VW can make good cars. but they will market thier lowest spec cars as a mid spec car. and charge you mid spec prices for a low end car.

    but its good to know or at least see how vw deals with ‘know-who’ suppliers who dont supply good quality parts.

  42. transformer said,

    March 20, 2007 @ 11:47 pm

    even after VW joint with P1, P1 car price would still remain the same but with improved quality… hopefully! Bolehland policy and tax won’t benefit much from this!

    P1 improved quality would have impact to other makes…. other makes would retaliate to drop price to stay competive… we all can keep our finger crossed!

  43. gigganet said,

    March 21, 2007 @ 5:42 am

    ok. i think this will happen…
    1. the “made by VW badge” will be stuck on the behinds of Gen2, Neo & Savvy, so that you can say you r driving a VW.
    2. i don’t think the CKD VW cars will be selling at current waja/wira prices. so, dont sell your wiras yet. hehehe.

  44. ingolstadt said,

    March 21, 2007 @ 4:13 pm

    Do they really need new platforms for a market with consumers that are forced/stupid-enough to buy 15 year old platforms??

    Just use the B5 platform, stretch it and replace the Waja, slot the 1.8T with 225hp into Neo, and use the C5 platform for Perdana. Top it all off with Passats CKD going for RM175k, Golf GTi CKD at RM165k, Touareg CKD at RM300k, A4 2.0TFSi CKD for RM220k, A6 CKD at RM280k. Oh, and Polo for RM68k and a Polo derived platform around Myvi’s size, put under Proton badge and sell at RM40k.

    Proton reigns supreme again !! oh.. it’s VotWon

  45. topgunthang said,

    March 21, 2007 @ 8:49 pm

    inglostadt….i like your scenario. but i think gigganet’s option no.1 is a more realistic picture of things to come.
    kinda reminds me of those people who put on a mitsubishi logo on thier proton cars. and also the chop shop mitsubishi bonnets.

  46. szw said,

    March 21, 2007 @ 11:50 pm

    that’s the way things should go…
    imagine the next satria gti would be a 2.0TFSI
    woohoo, can’t wait to see the result

  47. BW said,

    March 27, 2007 @ 1:50 pm

    What we really want is to improve Proton quality… Thats all!!!

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