Volkswagen has shown that its plans to assemble cars in Malaysia need not involve Proton or the national carmaker’s Tanjung Malim plant by inking a memorandum of understanding (MoU) with DRB-HICOM “to collaborate on the assembly and manufacturing of VW vehicles in Malaysia”.

The MoU was signed at Volkswagen Centre Singapore by DRB’s group MD Datuk Seri Mohd Khamil Jamil and Volkswagen’s senior vice president, group manufacturing overseas, Dr Christof Spathelf and its head of sales for China and Asean, Soh Wei Ming.

“This MoU is the culmination of intense discussions and both parties anticipate the production of the CKD models in Malaysia,” Khamil said. He added that the pact also included strengthening Volkswagen’s existing sales activities and market presence in the country. Locally assembled VWs will roll out from DRB’s Pekan plant in Pahang.

The group will also look at engaging the full participation of its component manufacturing companies, in a move to support Volkswagen’s localisation programme, in line with the National Automotive Policy, the DRB boss added.

UPDATE: Three models to be assembled, roll out in Q1 2011. Click here to view post.