It’s not easy being Volkswagen Passenger Cars Malaysia (VPCM). The recent reorganisation that brought in new distributor Porsche Holding Salzburg and its handpicked captains to steady the ship coincides with a slowdown in the Malaysian auto market that has seen total volume decline after six years of growth. We’ve hit turbulence, and industry players predict another challenging year ahead, but the premium segment seems unaffected by the crunch.
The problem for VW is that it’s not playing in the premium segment, despite having some credible ‘near premium’ offerings such as the latest Passat. The mass-market European brand plays in the same field as the Japanese stalwarts (Honda is now No.2 in Malaysia, while Mazda’s revival continues) and perhaps in leaner times, punters become less adventurous. That’s on top of the well-documented legacy problems VPCM inherited.
It seems like a difficult – impossible, even – task for the new management, but the team – led by two MDs, namely Florian Steiner and Erik Winter – has hit the ground running. Since VPCM’s debut in September last year, the brand has introduced a new five-year factory warranty to replace the previous 3+2 extended warranty format.
The company has also rolled out a goodwill programme that will provide an additional two-year warranty for DSG transmissions on VW cars produced up until December 2013 and with a mileage of up to 200,000 km. It will come into effect after the expiration of the five-year warranty period on these vehicles. The goodwill is also extended to other selected components including the old 1.4L twincharged engine (Mk6 Golf TSI) on a case-by-case basis.
There’s also a standard Volkswagen parts warranty that offers automatic two-year warranty on replaced parts/paid repairs, excluding wear and tear. This, Steiner says, has not been emphasised enough in the past.
Parts availability is another known issue, and this is being remedied by a parts urgent order system that promises dealerships a next-day delivery if an order gets in before 11 am (an extra day on top of that, if the order is made by 2 pm). The parts are currently coming from Singapore, which is 98% equipped, but VW’s main parts hub will be moving north to Johor in 2018, which should further reduce waiting times.
The final pillar in the after sales initiative is the onsite coaching that is being provided to the dealers. Volkswagen experts from abroad are stationed in Malaysia to assist the locals in both technical matters as well as processes.
Also, a Volkswagen Academy is currently nearing completion and will be opened in the second quarter. This VPCM dedicated training facility will house technical and sales training and can accommodate up to 150 people a day, more than double the current capacity. It is said that VW Singapore will also make use of the well-equipped four-storey training centre in Glenmarie, Shah Alam.
Meanwhile, four new 3S centres will open this year including the recent one in Batu Pahat. The others will be in Tebrau (Feb), Permas Jaya (March) and Seremban (April). All these efforts address directly the main issues that have affected the VW ownership experience of certain customers, which are also the main concerns of prospective customers.
“We’re not hiding. We can’t answer everything, but there’s a willingness to solve problems. We’re not perfect, but we are constantly improving,” Steiner said, emphasising importance of the principal’s support for its dealer network. “We’re here to empower and support the dealers,” he added.
These after-sales efforts reflect VPCM’s current mission in Malaysia – to build the brand and regain the trust and confidence of customers and would-be customers. The focus on this means that sales “volume is not a primary driver for 2017.” The brand shifted 6,048 units in 2016 for a 1.2% market share, which is in line with the company’s targets, it was revealed.
No 2017 sales goal was shared with the media, but VPCM is seeking “sustainable growth” and to simply maintain market share. There will be two main launches this year – of the new Tiguan and updated Beetle – plus some special editions, but the focus will be on activities that will build the brand. Years ago, there were plans to bring in the Golf GTE plug-in hybrid, but that has been scrapped.
The unprecedented “Drop Everything” sale by VW in the first half of last year offered eye-popping prices on old stock that had to be cleared. While it worked as intended, such an approach may not be good for the brand in the long term, although there were probably not many options for VW given the situation then. Resale values, already battered, would have been affected by the mega sale.
The company believes that by “regaining trust and confidence,” resale values will improve, but admits that it’s a long process. “It won’t come overnight, it takes time, but we believe that with a better brand image, residual values will improve,” said Winter.
What’s for sure is that there will not be another Drop Everything-style big sale. Winter reiteratedwhat was said before and declared that “we keep the prices,” which also means that there won’t be any increase in price despite the forex situation surrounding the ringgit. “There will be incentives during festive seasons, but we won’t be seeing discounts of RM30,000 to RM40,000 again,” he said.
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VW needs to regain the people’s trust again. its gonna be a long ride.
This story says, it takes just 2 years to destroy a brand. But much longer to rebuild one.
Gain trust is not about story telling, its drastic improvement implementation with immediate effect… for eg. Nissan in 2017 announced give 7yrs unlimited mileage warranty to engine, transmission & others selected part (previous warranty is only 3yrs 100,000km). Could VW do better, give 9~10yrs warranty instead…???
Stories about VW after sales service will do to VW what the power windows did to Proton. Proton fixed the power window problem but by then everyone knows Proton as the car with the power window problem.
In VW’s case, it’s much worse. My neighbors ask me how’s my DSG, is it ok? I keep telling them yes, but when my car goes into the workshop for engine problems and my parking lot is empty for months, my neighbors, who are into cars, and looking to buy new ones, will just go to other brands.
There’s so many choices now, why buy VW?
Winter is somewhere impossible here, why-it’s only hot & humid here. History do help us to understand the present and prevent us repeating mistakes in future; with honest practice then trust will come after automatically. Where is the honest practice, Passat even expensive than BMW 3series…!!! Projected 2018 to be repeat “drop everything, but lingerie excluded” For an example look at Ford Mondeo RM209,500 [non-luxury segment priced to luxury segment; BMW 3series only rm180,000]; end-up how many unit Ford Mondeo sold since launched…???
VW has to relook at its marketing strategies. Price for vento turbo is ok. But golf tsi should be selling around 115k max. Jetta at 120k. Golf gti at 165k. Passat at 155k.
They just have to market to the hipsters.
Hipsters are the easiest group to con to buy cheap German cars.
Really ar? My neighbour left VW 1.5 years ago and now sells Honda. That explains a lot.
Simple, drop dry clutch DSG completely edi.
It’s as taboo as Proton’s Punch CVT or Samsung’s Galaxy Note 7.
The moment people see it, brain switched off, run scared and never trust it.
Volkswagen cars are really a joy to drive. One has to experience the performance of its TSI engines and lightning fast dual clutch transmissions. Their cars are also solidly built. Their 1.4 twincharger, with both a supercharger and turbocharger is an engineering marvel which has won engine of the year awards. I own a twincharged VW and when I floor the pedal after paying the toll, it catapults forward with a strong thrust leaving all other cars, especially Japanese naturally aspirated cars behind. Test drive the GTi or Golf R and it’s the feeling of albeit piloting a jet with the sheer amount of torque at your disposal.
You must hate yourself to enjoy Volkswagen pay thousands in maintenancr
Yes drop DSG and pay for replacement with a 4 speeder Punch. At least it clears some bays in VW service centres. Then admit DSG dry clutch is a failed german engineering.
Why wanna drop dry dsg? Are you even an owner to comment or heck an automotive engineer ? Wake up and move out from your cocoon. If you get your facts from reliable sources, you will know that all CKD VWs are completely reliable. Call me lucky or anything you wish but I am an owner and I am happy with my ride. Behind the wheels of your Toyota, the best you can do is to imagine the TRD body kit adds on 50bhp (Sorry guys, Toyota never do turbo, so I had to stress on bhp and not torque) to satisfy the adrenaline rush cravings your mind is longing for. It’s ok to criticise constructively but you have to back it up with real, hard evidence, and there is none hence keyboard warriors create something out of nothing.
Too late. Ask VGM give unconditional 10 years warranty to all DSG. Then might be a chance
I’ve never own a VW but i’ve sat in plenty of them(friends) from polo to passat. What i can say is the quality of VW is really good for its price. Heard that service center is crappy and DSG always got problem but that is not true. I think it all depends on how you take car and drive your VW and which SC you go to. Rakyat should give VW another chance rather than bashing them
i like your comment “it all depends on how you take car and drive your VW”, could u please elaborate in details or are u suggesting vw drivers need special skills/technique to drive a “good” vw car? in my opinion, a good car do not cause trouble nor need special driving method !!!!
Really? Sat in Passat and I don’t feel any more luxurious than sitting in a Camry.
VW feel is overated.
Please! Do not compare Passat with Camry. The moment you drive around Passat, you will know how good feeling and quality the Passat is compare to Camry. Camry is just 1 of the Japanese overprice crap car in Malaysia.
My VW Cross Touran has been at the workshop almost 2 months now. Let’s not even start with how they screwed up after sales, plenty of stories out there already.
They make good cars but dude, where’s my car?? No point giving warranty if the car just sits in the workshop.
My MK6 was declared by my friends as a showroom car because it spent most of 1/3 of his life in a workshop. I love the feel and drive from my VW but I’ve loss my confidence to own another VW due the hassle and problems that I had with the car. I sincerely hope that VW are able to rebuilt their quality and commitment to all VW buyers.
Luckily for my Scirocco 1.4 it didn’t spend as much time in the workshop as yours.
Long story short after 4 years of ownership my car has suffered 3 mechatronic issue, 1 leaking turbo and 1 electrical issue with a total of 6 months parked at workshop. So 6/48 months is considered much better than your case i guess.
It’s funny when the new principal keep coming with such PR but on the ground nothing change.
Parts availability is zero. Order will take at least a week if you are lucky or a month for parts like coolant pump.
Best yet, the service center claims that they are unable to order the parts and have the customer go to another service center. You can give 10 years warranty for all I care but when it comes to warranty claim, either you issue legal letter to speed things up or let you car sit in the warehouse like a duck.
Japanese brand has suboptimal service one.
Good luck for staying No 5 .
Car companies should not offer the 3rd to 5th year insurance-based warranties.
VW can try but the bad image is already ingrained in Msian psyche. Once bitten, twice shy scenario. Fiat / Alfa, Citroën, Renault all tried & failed. Best of luck, anyway.
Too late
Right things to do! You make me re-consider to get another VW, coz I’m really pissed with current reputation, service and brand image.
My Polo went in before Christmas, after 2weeks they said the parts need to source from Germany due to unavailability in Singapore. Thereafter they sent to another dealer and again informed the part needs 2weeks to source from Singapore. Already 1month no car. CNY also no mood.
Trust me . You try other workshop.
Sale your vw, buy toyota/honda..
Low RV how to sale.
Tips: Pull out all your wire. Maybe that wire harness alone could fetch more than the entire car.
My main issue is the crazy prices that the service centres charge for scheduled service. It used to be ~RM500 for my polo 1.6 now it can be above RM1k! What is the reason for such a ridiculous increase in price?
Yeah, I have the same complaint. When I bought the car, the service schedule had indicated the items and costs for each. However, in my recent service, the total came to more than 240% of what was in the service schedule! Moreover, previously, GST was not applied to parts, only labor. Now GST also on parts! So the GST increase > 10X from the service schedule! VERY UNHAPPY!
if u want german brand, italian quality, malaysian service, indian manufacturing, american trustability…this is the car
BY admitting your shortcomings is a Good start. This is a hallmark of a Good leader. Looks like VPCM is serious in nipping the butt/the crust of the problems.
By improving on your warranties, VPCM is sending a message to it’s future & current customers that they are serious in their commitments to M’sian customers.
2017 is indeed about Building Brand Trust. Keep up & continue doing what you are doing. I have no doubt VW will make a successful return to M’sia.
Not too long ago, they said they are moving parts centre to port Klang by 2017. Now to Johor by 2018. Another wait n see? but if they are serious about business, they should show some serious commitment. Why stay in Singapore? How many VW cars Singapore is selling?
More than proton/perodua
We have to acknowledge the previous management and the current management are putting effort to turn around the brand. There are key areas that VW has to do it right.
1) Improve Claim Procedure – This apply to those existing owners who are facing issues with their cars (2010-2014). The red tape has to cut or remove. Claim procedure has to be painless and efficient.
2) VW has to make a bolder offer to the existing owners who are affected by the Drop Everything Campaign. It is much rewarding to see a better offer by VW and put more cars on the road and heal the heart of the existing owners. Your current trade in campaign is nothing special. Existing owner felt – “Potong Stim” with the Trade In Program.
3) Should offer better Warranty to Malaysian – 5 year “Was Good” ….for VW , you need to offer better warranty. To start with , Nissan already started with 7 years
17 years also no use, if ….
We have to acknowledge the previous management and the current management are putting effort to turn around the brand. There are key areas that VW has to do it right.
1) Improve Claim Procedure – This apply to those existing owners who are facing issues with their cars (2010-2014). The red tape has to cut or remove. Claim procedure has to be painless and efficient.
2) VW has to make a bolder offer to the existing owners who are affected by the Drop Everything Campaign. It is much rewarding to see a better offer by VW and put more cars on the road and heal the heart of the existing owners. Your current trade in campaign is nothing special. Existing owner felt – “Potong Stim” with the Trade In Program.
3) Should offer better Warranty to Malaysian – 5 year “Was Good” ….for VW , you need to offer better warranty. To start with , Nissan already started with 7 years
Crap, and I was hoping to buy a VW for 30-40k discount
Lampu depan macam mata kuyu.
I have a love hate relationship with VW. Used to own one. Must admit it was an addictive car but it gave me problems like I have never experienced before with other cars. After consulting an independent workshop, we concluded that the service centres suck. Both of them where I used to send my car to, one in Jalan Ipoh and the other in Sungai Besi, both have been shut down. It’s either they hire incompetence useless people or dishonest bastards. At one point we even suspected that people there replaced some parts in my car to faulty ones either to be sold outside or done by mistake. Either way it really compromised the experience of driving the car. Eventually the car got stolen. Now, with all the scandals and my not so pleasant experience with the brand, I just don’t know if I want to buy another VW…
The management is pretty well aware of their issues with the brand. They may have the ideas to rectify the problems. However, non of their plans are being executed the way it was intended. Guess the management themselves do not commit to what said. If they don’t commit to the sales and tech people, how do you expect them to commit to the customers or prospects? Whatever ‘promises’ seems to be half hearted. Give a checklist to the sales and tech staffs. Commit it to the customers and prospects. Word of mouth is the most effective to market.
The GTE would have sat where a 330e and c350e is sitting now… but it didn’t make it. You had years of leading but you gave it up. Same with Nissan Juke which was never introduced here… look what Honda got from HRV. Now Toyota, is your CHR coming? By the time it comes, the trend probably moves to Hybrid SUV while you might only introduce the NA version in Malaysia. Make waves, introduce your strength, bring in something special.
VW, until you exercise common sense and get rid of the dry clutch DSG and instead use the conventional 6 speed auto gearbox in your models, YOU.WILL.NOT.BE.TRUSTED period.
Building brand through resale value building trust through after sales service. That are the common buyer expectation.
The only way resale values will go up is with volume. If people don’t buy it new, they won’t buy it used.
VW needs to double their sales (without too much discounting) to get resale values close to Mazda.
Until then, it will be a cold car. Sales figures talk. Everything else is just marketing ra-ra.
In Europe most or VW are using manual gear
Here’s the comparison. My Toyota, which is now 5 years old, is used daily (approx 70km and more during the weekends), and has not had a single problem. It’s only been to the service centre for the regular services, and that too not at the recommended mileage. They were delayed by me because i have been busy. Unless VW can achieve something like this in a sustainable fashion, it will not gain market share. A handful of folks are seeking performance, but the bulk of the market want a reliable care with strong residual values.
VW constantly improving?Seriously???Im an owner and i,ve written emails via official link & also their FB message.
No reply!!!!!!!
deep inside, i want vento. but..nvm
VW is a real screw up brand! I am having my car engine replaced at 65,000km, pls tell me honestly guys who of you have experience an engine failure at such low mileage on other car brands?? Not another VW in my life.
VW is a good care to drive when it works. But chances of breaking down is so damp high that it takes away all the good driving experience. Forgot to mention that goodwill program from VW does not cover Labour which will still cause a bomb to some of us. The 1.4 tsi engine is a design flaw from VW and this extra 2 years goodwill program is a COVER UP of a major design flaw!!! Pls check globally how many 1.4 tsi engine failures at low mileage, VW pls own up and have a worldwide recall!!
Same trauma to my Golf Tsi engine. I second your opinion on the worldwide recall.
The goodwill repair by VW does not include Labour which will still cause a bomb to some of us. VW pls do a worldwide recall on your so call engine of the year! Looking at all the engines dying prematurely at low mileage shows that this is a MAJOR DESIGN FLAW by VW!!!
Customer service at Service centre sucks
TOTALLY UNACCEPTABLE CUSTOMER SERVICE. PLS BUCK UP VOLKS.
Its never about the price you pay for the service and the parts. It’s all about the customer service that you provide.
You ask for appointment even for inspection. Ok. Fine, we book a time for inspection, easily have to wait 3-4 weeks to get an inspection slot.
20th JUNE:
Then, you diagnose, it took just 2-3mins. okay good news that you get some findings on the diagnosis tool. Recommended replacement parts identified. Okay, now, pls change it for me.
No sir, we can’t do it now. You have to make another appointment for it.
Your staff did some checking, and told me the parts is under warranty and I do not need to pay for it. The parts is available but you got to make an appointment for the replacement. Oh, that’s kind of inconvenient.
Okay fine, what’s the nearest available slot
Volks CS: 17th July
Me: okay just book it please.
17th July
Brought the car over for the parts claim.
Well, oh well,
Volks CS: Sir, are you okay to leave your car for 2-3 days for the warranty claim?
Me: why does it need so long just to replace a speed sensor? Is it the documentation process or is it due to the replacement work?
Volks SC: it’s the documentation for the claim.
Then….after checking….
Sir your car is not under warranty for that parts your request to replace.
We check your service record dated back to the first service history your came to service late by over 400days. If you wish to replace the parts, you have to pay for it.
Me: If I pay for it, can I get the parts replacement today itself?
Volks CS: Yes.
Me: at the first point, I don’t quite agree on the breach of the service due dates and I have to pay for the parts now. This is a pre-Reg car. How do u expect customer send for service when the car is not sold yet.
WTF is this?
You didn’t check my warranty eligibility and recommended me to claim for the parts. I make an appointment one month in advance and letting go other jobs to come for the appointment. I waited for almost 1full month for the appointment And now finding out it’s not claimable yet can be replaced within 2hours if I pay.
I am NOT being furious of the price to pay for the parts, BUT Its just totally unacceptable with this kind of service you are providing. What’s the point I come back to Service Centre if I don’t get better parts or services yet wasting a lot of unnecessary time.
17July already inform Volkswagen SC about driver side door lock malfunction. Sometime I can’t unlock my car and I need to climb over from the left side.
Today 22Aug, still parts not arrive and still haven gotten fix. First, I am furious about the parts durability, secondly, the service I am getting is totally unacceptable. Sucks.
#volkswagenservicesucks
#volkswagenmalaysiaservicesucks
#volkswagenglenmarieservicesucks
#volkswagenservicecentresucks
If someone ask opinion to own a Volkswagen car, i really will say DON’T unless you are a billionaire. If still not listening the answer is you a digging your own graveyard and you are responsible for that.
The Normal service charge is 5 times higher than Japanise car but the quality, technology, comfort are merely see any different.
Spare part don’t even ask the price. Just dump the car if caught in accident.
Never ever buy VW if you want peace of mind.
Having GTI MK6 is considered a mistake and the car has to be in the dealer workshop repeatedly due to leaking cooling water, jerking engine and ABS nightmare. It is like showroom car which always in the dealer site fur repair. Think many many time before embarking to VW world. Be ready to empty yur pocket of the charges.I like the feel and drive from my VW but I’ve also loss my confidence to own another VW due the hassle and problems that I had with the car. I sincerely hope that VW are able to rebuilt their quality and commitment to all VW buyers, maybe?
Pls avoid VW all together, I am an owner of a Golf TSI, Engine replacement at 60k, Clutch and Mechatronic malfunction and the car is diagnose with a turbo problem. My message to all, pls don’t ever buy a VW! I really regretted selecting this brand just for the sake of the performance and never considering the reliability in the long run.
Please please please DON’T BUY a VW, I am begging u guys for the very last time to stay away from this problematic and unreliable brand! I have been in and out of the workshop without a car for the past 3 years of ownership without the problem been diagnosed. It is just not worth all the trouble. Finally I have to sell it off because I really can’t live with a car that is always in the verge of breaking down, and I can’t bring my family on road trips to somewhere far been paranoid that it will breakdown on the highway. My advice to all, pls stay away from VW!!!
Whoever that will buy a VW is pure stupidity and I placed myself at the top of the list. For making the biggest mistake of my life for purchasing my so call “dream” car, the Golf – Car of the Year that gives me trouble for seven long years!!!!