VW to make Pekan regional hub, plans to make 30,000 vehicles by 2018

WOLFSBURG (GERMANY): DRB-HICOM Bhd's tie-up with German automotive giant Volkswagen AG (VW) to manufacture VW cars at the former's plant in Pekan, Pahang is expected to create 800 new jobs within the next two years. International Trade and Industry Minister Datuk Seri Mustapa Mohamed,
who met representatives from VW AG here on Monday, said the German car
company expected to produce more than 30,000 (VW) vehicles at the plant
by 2018. “Pekan will become the regional automotive hub for VW,” he told Malaysian reporters during a visit to VW's assembly plant here. Mustapa said DRB-HICOM's plant in Pekan was currently employing 2,300 people and was under-utilised. DRB-HICOM
had signed a collaboration and licence agreement with VW worth RM1bil
last year following a memorandum of understanding by both parties in
August to study the feasibility of locally producing VW passenger cars
in Malaysia. [You must be registered and logged in to see this image.] A view of DRB-HICOM facilities in Pekan. DRB-HICOM will begin exporting VW cars starting 2013
Mustapa said plans were still on-track to manufacture the VW Passat and Jetta models by year-end. “Discussions
are on-going to manufacture another model as well,” he said, adding
that DRB-HICOM will begin exporting VW cars starting from 2013. “We
expect to achieve up to 40% local content (for the VW cars) by 2014,” he
said. Mustapa added that Asean was one of the fastest growing markets in the world. “VW
sold 7,500 cars in Asean last year. Currently, they don't have a strong
foothold in Asean,” he said, adding that DRB-HICOM's tie-up with VW was
a step in the right direction. Mustapa, is currently leading a
trade and investment mission in Europe until this Friday to promote
trade and investment opportunities in Malaysia. The delegation paid a visit to the VW's Wolfsburg manufacturing plant to promote bilateral ties. “We need to create a feel-good factor about their investments in Malaysia,” he said. The
Wolfsburg factory is the largest auto plant in the world. It sits on
1,500 acres of land and produces 3,500 vehicles a day. The company
employs over 60,000 people. The delegation also made a stop at the Autostadt, an automotive theme park representing the VW group. Located
near the factory, the Autostadt has a state-of-the-art car museum,
brand pavilions for marques under the VW group, driving courses for
adults and children, as well as tours of its Wolfsburg factory.
(biz-thestar)