geelymerielogo.jpgAccording to a report by China Knowledge, Geely Automobile Holdings Ltd has scrapped it’s plans to set up an automotive assembly plant in Malaysia. Previously it applied to start assembling cars in the 1.3 litre and 1.5 litre range here in Malaysia together with it’s local partner Information Gateway Corp Sdn Bhd (IGC) at a plant in Kuantan. Assembly was expected to begin in October 2006 with the Geely CK sedan. Total investment was expected to be in the RM100 million range.

First they were faced with a 20:80 local distribution to export ratio, and recently the government decided to only approve assembly of cars with 1.6 litres of displacement and above. I suppose when you are faced with so much problems even before you put your money in, anyone would just walk away – Geely has decided to take it’s business elsewhere and has decided to set up an assembly plant in Indonesia instead.

As for Cam Soh’s Information Gateway Corp Sdn Bhd (IGC), they will begin importing Geely cars in from Indonesia for sale shortly. 1.6 litre models and above will be assembled locally in Oriental Assemblers Sdn Bhd’s plant in Johor Bahru by year-end.