Volkswagen AG will be remodelling the group’s wholesale operations in Malaysia through Volkswagen Group Malaysia, as the initial plans for the group to tie up with Proton in a strategic stakeholding failed.
“Following the recent developments in the Proton-Volkswagen discussions and the Malaysian Government’s announcement, Volkswagen is currently reviewing its business strategy for Malaysia. Volkswagen considers the government’s counsel on this matter to be of utmost importance and value in ensuring the well-being of all Volkswagen local stakeholders, especially its customers. Volkswagen continues to believe in the potential of Malaysia’s automotive industry as well as the country’s continuously growing importance and influence in the region,” said Volkswagen in a statement.
From what I see, VGM could take two paths – one is to bring in CBU units through AFTA benefits from wherever they decide to place their regional plant, either Thailand or Indonesia, and the other would be to start up CKD assembly in Malaysia.
The last European manufacturer who looked into the CKD business here was Peugeot, and they seem to be happy with the standard of Naza Automotive Manufacturing’s plants up in Gurun, so that might be a good idea. Other choices include Inokom in Kulim, and Oriental Assemblers in Johor.
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Quoted….. “Volkswagen continues to believe in the potential of Malaysia’s automotive industry as well as the country’s continuously growing importance and influence in the region,†said Volkswagen in a statement.”
What does the statement means ? Is Volkswagen going to drop price and introduce more smaller cars with attractive prices and fight head-on with P1 ?
Or they just pack their bags and move north ?
Anyway, the stories which came out in the newspaper re the failed talks between VW and P1 are all crap….politics based craps !!! How come u say that stopping the tie-up would save the country ?
Some people want to save face, they dont think ahead of the game…
I am getting to feel this country economic is getting worst & worst. Thx to our local automobile policies, they might be going to Thailand or Indonesia… Even CKD wont be cheaper so much, the best choice is still go to cheaper country to stabilize a factory.
No more cheaper VW GTi for me… T.T
Hopefully after open market, Proton dont cry for ppl help again when the worst hit again…
Well.. now let see who really desperate now..
VW , you wanted too much.. (that’s why the deal failed).
Thai? Indo.. does they got market there?
Continental Cars market is small in Malaysia except for Merc.
Don’t tell me from the time Proton talks started until now, or after NAP was announced VW didn’t have a CKD plan? Suzuki and Peugeot are already ahead of them. Chevrolet too I believe.
Guys, just curious… when is malaysia market going to open and leading to cheaper cars? I’ve heard this news going on for years… now is coming 2008 already…
Buying a car has more burden than buying a house in malaysia…
VW just being polite in saying ‘ thanks for shafting us yet again’. all they need to do now is to focus on other markets. only millionaires can buy vw cars.
vw car are way too expensive in malaysia. they end up competing with their own brand audi and to a certain extent bmw at their current price range. its no surprise then that they are not doing too well in terms of sales.
even if VW setup CKD in malaysia, how cheap can cheap be?
TO VW (M) MANAGEMENT,
I am entitled for CBU / CKD import permits and have a manufacturing license to import and assemble any brands.
It was obtained thru my acquisition of an automotive company.
If the management interested, kindly give me a shout out.
Rgds
HK
TO VW (M) MANAGEMENT[ if you read this blog ( which u should )],
I am entitled for CBU / CKD import permits and have a manufacturing license to import and assemble any brands.
I am also entitled for some duty / tax exemptions on some categories of the commodities.
It was obtained thru my acquisition of an automotive company.
If the management interested, kindly give me a shout out.
Rgds
HK
Need to highlight here that it is not their wish to sell the VW cars here at the current price. As it is a cbu car, the G have stamped on an exorbitant tax on such cars which forces the importer to tag the price tag that have put off many msians from buying such continental cars.
Old timers in msia like BMWs and Mercs, have since moved to localise their popular range in msia, thus enjoying some benefits in terms of lower pricing.
VW’ s main target is not on Msia’s car market alone. Their goal is to set up a strong foothole in S.E.A. region, a part of their master plan to topple Toyota off as the top car manufacturer.
wanna fight toyota?? go to Thailand….. As for Malaysia the local policy is unstable.
I said it before, VW’s burned themselves here. They had the chance of a manufacturing base and distributorship network which are already in place. They pulled a poker face and wanted control. Now they control nothing. If they are still interested in the market, its gonna cost more and returns are going to be longer. There’s not ASEAN-EC FTA yet and it will take time. Somebody has to tell this to the shareholders. Heads will roll. That’s the cost of underestimating.
In ASEAN countries, other than Singapore, which country can buy more value added (more profit) cars and are more open to Euro styling? Thailand? Yeah right…
if the government doesn’t stop the deal , we will be having a great Christmas present by seeing nicer proton coming out…
Hehehe, i think VW mgmt doesn’t read your blog……..
They probably don’t. My email requests for test drive cars also go unanswered.
hope they will lower the price…