Volkswagen has finally received the go-ahead from Thailand’s government to build a manufacturing plant near Bangkok, Reuters reports. A VW spokesperson has told the news agency that the carmaker will now assess the situation, and that no firm decision has been made yet on whether to build the factory.
Previous reports indicate that the one-billion euro (RM4.1 billion) plant could produce up to 300,000 vehicles a year at full capacity, and will build 1.4 litre petrol engined cars. If the latter is true, then the investment may not fall under the Eco Car Phase 2 programme as previously speculated, because the scheme requires (for petrol) engines displacing 1.3 litres and under.
But the German carmaker has wanted to do this for the longest time – we reported its intention as early as 2008, before it applied to set up a Thai plant early last year.
Volkswagen already produces its Passat, Polo and Jetta models in Malaysia in conjunction with DRB-Hicom, while a new plant in Indonesia will take advantage of growing demand there.
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These jobs would have come to Malaysia. All thanks to Proton!!
Nobody buy VW coz no RV as u said…u turn ka?
Yet another blow to Malaysians and a few thousand or maybe tens of thousands jobs are lost because VW has chosen Thailand.
Malaysians have already suffered so much. For 30 years, 30 million people suffer so much. We struggle paying for our high car prices all because of one man’s dream of benefiting his friends and relatives through the AP system and the government protecting Proton.
Malaysia was on its way to becoming the Detroit of Asia in the 90s. But the AP system cost us hundreds of billions in ringgit in investments from car companies who moved to Thailand and Indonesia. Car companies got fed up with Malaysia’s MITI for protecting Proton and telling other companies what to price their cars. They got sick and tired of the AP system and how genuine brands cannot get enough APs to import their cars in (like Mercedes, BMW and Honda).
They thought that if they set up their brands and plants in Malaysia, they knew they had to share the pool of APs with the cronies and they knew 90% of all APs go to the cronies. They all moved their operations to Thailand making it the AutoCity of the world.
Recently GM announced that they rolled out already 1 million cars from Thailand. Imagine if GM was in Malaysia and we taxed GM RM10,000 per car.
Calculate that with 1 million cars. Just from GM alone, we lost Billions in USD. Imagine what will the amount be from other car companies if they had set up in Malaysia?
Because of Mahathir and his AP system, as well as Proton, we lost hundreds of billion of ringgit in investment and trillions of ringgit from jobs lost. If Malaysia was the autocity of Asia, hundreds of thousands of jobs would have been created for Malaysians. We lost all that. Trillions of Ringgit and hundreds of thousands of jobs. Now, Thailand is benefiting from this trillions lost.
So, in summary, the 30 PEKEMA AP members and Proton have solely caused Malaysia to lose trillions in investments.
A word of caution to the idiot Madani from MAI and the idiots in MITI, Malaysia might even lose existing companies who are already CKDing in Malaysia. BMW, Mercedes, Nissan, Honda and Toyota might even close up their plants in Malaysia to open up in Thailand.
This is so worrisome. Despite Thailand having an unstable economy with riots and bombing, no stable government, yet car companies still prefer Thailand to Malaysia. Makes us wonder…..what is wrong with Malaysia?
this is wrong. they came to us first and with unfavourable terms, we had to dismiss them with very heavy heart.
what happened to the MoU between VAG and DRB, which has assembly plant in Pekan and currently producing polo sedan, jetta sedan and passat sedan?
see Dr M?
Madani and MAI love to talk big. But 2 main issues they try to avoid. The first issue is where is the 30% gradual reduction in car prices his beloved Najib promised the rakyat prior to election? That is in everybody’s minds. It far exceeds any hybrid issue. Najib promised voters that if we voted for him, he will ensure that by 5 years time, there will be a 30% reduction in car prices. Its already 4 months since the election. By now, we should at least see 5% reduction in car prices. But the opposite has happened. We see companies like VW increasing across the board their prices.
2nd issue is the AP crony scandal. As Madani and Mai are part of the government drawing up automotive policies, what is the government doing about the Bumi AP holders selling their AP Permits to the Chinaman? The whole purpose of the AP system is to promote Bumiputera participation in the car industry. If the government is giving thousands of free APs to bumis only to be sold to the Chinaman, what is the whole purpose of the AP system? The AP system has only resulted in cars generally becoming expensive because if our genuine car companies are given unlimited APs (eg companies like Honda, Nissan, BMW and Mercedes) they will be able to drop prices.
But instead, the APs are given to just a handful of cronies, who in turn, instead of setting up business, as set our in the spirit of the whole purpose of the AP system, they just sell the APs to a 3rd party. Each AP is worth about RM50,000. Some get thousands of free APs. So, some individuals are getting millions of free ringgit. All this results in prices of cars increasing because there is no economies of scale for our genuine car companies and our genuine car companies cannot reduce car prices. Only a handful of 20 to 30 AP cronies are getting ALL the thousands of APs handed out free.
The two pressing issues Madani and MAI love to forget. The rakyat want to know, what are you all doing about
1) Najib’s promise to reduce car prices by 30% gradually over 5 years
2) The AP Crony system. The system is bleeding the car industry.
Forget about coming out with press statements on Hybrids and all that. Car prices are the sole and most important aspect in everybody’s lives. If I can save about RM40,000 buying a Honda Civic 1.8 Petrol, I won’t be thinking about saving fuel with a Hybrid at ALL. Most people pay in Malaysia are ALREADY paying 3 x the prices for their cars (compared to world prices). A Honda Accord and a Toyota Camry is only about RM60,000 sold globally. If I can save money from the price of the car, it would mean far more than saving with a Hybrid Engine.
Apa benda bising budak kampung?
im from KL..
Ko lah yng betul kampung!
Although it has less RV, no doubt it is also a decent car.
You can’t stop people from buying VW, same as you can’t stop ppl from paying for a junk (e.g. Proton).
The fact is most people still prefer Toyota, and our sales figure tells.
crappy gearbox?
At least it is only the gearbox. Not like the Proton, everything can break GUARANTEED 100% will break.
Want reliability? you have to buy car from me then.
What happened to MAI and their promise to push EEV?
Madani Sahari is used by the government to confuse the people with heavy duty analysis and charts. Where is MAI now?
Madani and MAI have been promoting EEV and cleaner environment for years now. MAI said Government strongly encourages EEV vehicles and we should all buy EEV vehicles.
Now apa jadi?
Si Madani, dirty diesel is causing a lot of health problems for every Malaysian. The fumes are choking us and actually killing the elderly people. Clean Euro 5 diesel should be given immediately and on the spot. All our Asian neighbours have clean diesel except us.
All because Government owns the National Oil company and Government don’t want their Petronas to invest in cleaner diesel but rather see Malaysians die of lung cancer and throat cancer.
All the bus companies and lorry companies that smoke us with thick black smoke also are owned by the BN Ministers through various proxies.
In Malaysia now, respitory illness is the No 2 killer. But Government don’t care. Let the 30 million people die, so long as we BN guys can enrich ourselves with Petronas money.
But the Government people are so stupid. The Government hospitals will bear the burden and cost of the many people with respitory illnesses and asthma, lung infection, cancer of lungs and so on.
Ask the European Union, sulphur and other hazardous materials in Euro 2 filthy diesel is so toxic and cancerous to society, it is the biggest ever crime that can be committed to society by a Government.
The microscopic hazard that enter your lungs and eventually your bloodstream is so poisonous, it is as good as you drinking some Roundup everyday.
Madani Sahari, where is the clean diesel for the whole nation immediately? Important things like this you don’t address.
There above issues including clean diesel, Madani got no telur to tackle. The MAI guys are paid very high pay to confuse the rakyat with all sorts of analysis and charts but these issues, they don’t bother.
Our hard earned money is spent to support the fools at MAI. But no result. The last big paper so much was said about EEV.
Please Madanai and MAI, have some guts to serve the people of Malaysia and not just your own pockets.
This is VW chance to tailor make Southeast Asia specs for SEA consumption, just like how they did for India and China market, making different models to suit their respective region.
When you have the economy of scale, you can produce different models for different region, just like how Honda and Toyota did for North America, Europe, East Asia, SEA etc etc.
Higher chances is that we can get a VW that suit our SEA requirement, which is not a bad thing.
Less ppl buy VW is bcos of the pricing and sourcing of part is difficult.
When price point is right (cheaper due to produce in ASEAN), good specs, easy sourcing of parts and reputable brand, ppl will buy.
Again… thanks to our “Forward thinking G”.. we had just flush out Billion ringgit deal down the drain
Less people buy VW because every VW owner tells his friends to NOT buy VW because they keep breaking down.
So… Did you encounter any issues on VW car before?
My relative who drive VW didn’t encounter any issue on his Beetle.
By the way, how do you know that ‘every VW owner tells his friends not to buy VW because VW keep breaking down’? Can you show something to prove your words?
Don’t blame Proton… Put all the blame on Proton Vendor, this all kayu after 20 years still need spoon feed & protection from NAP…
Those are all cronies. They are the culprit why Proton can’t be sold worldwide like Hyundai (found same time as Proton).
Because of them, Proton cant even cross border to Thailand and SG market.
Malaysians are suffering with Proton quality while the cronies drive S classes around the city.
“They are the culprit why Proton can’t be sold worldwide like Hyundai (found same time as Proton)”.
Bro Hyundai founded in 1967 ..Proton 1985….fakta tu biar laa betul
OMG…Big loss to us…Thai got many natural disaster and politic chaos, but yet VW still choose Thai, why not in Malaysia? hmmmm
Our country head used to shiok sendiri, setting up a VolksWagon City in Malaysia. So??? They r planning to setup plant in Thailand. Not sure if Thailand has a VW City.
Proton is our only chance. So support sikit lar… But I really don’t know which model to support. All the Proton models LED back light I saw on road is one eye blind or dim. Can’t think of a reason for them to be dim or blind. Even my LED project still runs strong till today. Sub quality LED supplier? Or poorly designed LED management system for the car.
now u all bising VW lari…u guys say no quality la, gearboz sux la..blabla..then now u turn say foreign investment go to thai. better VW go thai padan muka boleh pipu
Tolong la KZM, don’t talk rubbish in this forum. Only person talk rubbish here is you
where is freedom of free speech or in this case free comment…
VW is one car company that even Toyota is afraid of. Obviously because only VW is capable of beating Toyota in sales this year or next. This is despite it having only a small presence in ASEAN. That’s why they are targeting Indonesia and Thailand. Indonesia, because it had the potential to be the fastest growing market in the world, even overtaking China and Thailand, because of its regional hub status.
http://www.reuters.com/article/2014/04/02/us-carmakers-asean-idUSBREA311CJ20140402
So watch this space, as VW is dead serious now with their mission to dominate the ASEAN market. Toyota and Honda surely start worrying now.
Of course… people nowadays had bored with Japanese car! all the while, when mentioned about VW, Benz.. all this germany car are only meant for rich man. there is no way you can use RM100k to own a VW.
now they bring in, at least middle high income ppl afford to drive high performance car… of course Toyota is scare la!
VW Thailand Annual Sales Figure:
2013 – 2014:
average = 500 units/year
Toyota Thailand Annual Sales Figure:
2013 – 2014:
average = 350,000 units/year
Then, we have Isuzu:
2013 – 2014:
average = 180,000 units/year
Honda:
2013- 2014
average = 150,000 units/year
Benz
2013- 2014:
average = 10,000 units/year
if your numbers are true, vw would be stupid to set up a thai plant when their numbers are miniscule. i believe their sales are higher in malaysia, should buy proton and setup factory here.
They tried however Proton for Pride and Dignity…
you complete the sentence la.. I bosan d. They should have just let VW managed P1, at least crownies would be weeded out faster.
VW are very brave.
Dare to give public Latest technology, result in worst reputation harm ever.
sames goes to VW Malaysia, so brave to set up CKD plant.. and the sales never stop dropping ever since early 2014.
Price reduction of VW Malaysia has been drastically made, but the sales still continue to drop.
Sales figure continue to drop of VW in ASEAN is a fact and figure proven. U can search the real figure, easily available online.
Well not only Volkswagen sales is dropping la, alot other car brands also sales drop what. Ever since GST plan being announced everybody also scare to buy things la, rather keep the money for emergency use after GST being implemented on April onwards la.
Well.. I don’t think VW sales is as bad as you said and their sales are still increasing.. Please read this news.. http://time.com/3663287/volkswagen-sells-10-million-vehicles-2014/
Apparently they want to set-up a plant there to change this numbers?
man if the figures are correct, the potential of sales makes it worth for VW to set up factories there.
Thanx to our ‘Knowledgeable Gov’ & Proton … Soon one by one going out from here … believe it or not …
Meanwhile.. this New Year we lost another Foreign Direct Investment to Thailand..Many jobs should be created while we still.. Syiok Sendiri Aje
I believe firstly Thailand does not have its own government initiative car project. Secondly. you must “JV” with someone like e.g DRB/Naza/Sime Darby. Thirdly, conflict of interest will arise eventually if you are successful. Lastly, the tax-structure in Malaysia is not accommodating. If I am an investor, I prefer the economic and decision-making freedom.
Did you all know Motorola also wanted to cabut from Penang had it not been for fed gov interference?
Ada ka orang beli Motorola lagi?
motorola sold their handphone business unit. motorola is still big boys in industrial and enterprise grade telecommunications systems, wireless transmisisons, cellular networks towers, signal amplifiers, telematics and even automotive, very much similar to siemens.
err microtac II?
Err Moto X, Moto G and Nexus 6?
its all about the salary lah. our workers and technicians and engineers are demanding sky high salary.
and especially in penang where competition is stiff… from the likes of Dell etc.
labour in thailand is supercheap.
though we have ourselves to blame partially the govt is also to be blamed for not able to control the high cost of living (partly from taxes, high car prices and houses and fuel and toll charges).
this already occured before when many manufacturers left malaysia to set up plan in republic of china.
for babies here, talk nonsense saying we lost VW to thailand, please do not utter anymore shittty nonsense. the fact that matter is this, VW came to Malaysia to set up production here. whether they build production plant or use the existing plant by other makers, that does not matter.
after negotiations and many other issues, then only they decide to go thailand. and the issues, are never about interference from the government. it was the term and condition that broke the deal. the terms were not favourable to malaysia
after what happen with thailand last few years where the political isnt stable and dont forget the huge flood, of course doing business with large investment is a very real and high risk. VW made their call and pretty sure they got that risks all sorted out.
I am not going to say thailand isnt safe as I believe the more prosper the neighbours the better the neighbourhood will be. wishing thailand all the best and of course VW as well, but please keep the DSG off problems next time.
the terms were not favourable to Proton….Not to the country.
Terms does not favor “PROTON” and cronies I believe so..
We’ve already lost the rat race with the Thais and Indons. Don’t be surprised, when Vietnam overcomes Malaysia in car production output in 5 years time.
Haih, we could be driving Proton GTI, instead it is Proton GTi. Why small i? Cause Proton k0n3k very small…. cue butthurt Proton gheyboys
Wei,
In Thailand vw pay 500 per month
Here, you want ka to work for that amount of money?
Thats the real reason la.
Haiyaaa.
this all due to the tax , Thailand maybe given a very good scheme that attract VW to open factory there …
Anyone know who VW is using as a recruiter for Thailand?
Looks like this story will be a dead end, between the lawsuits and the rapidly emerging new technologies for conveyance, i suspect this idea will go no further. Any updates that suggest otherwise?