Volkswagen to start producing vehicles in Malaysia in 2011

The Volkswagen Groups is continuing to expand its activities in Southeast Asia as part of its Strategy 2018 growth program. In the presence of Malaysian Prime Minister Datuk Seri Najib Tun Razak, the Group just signed an agreement with partner company DRB Hicom for local production of vehicles. From the end of 2011 Passar models will be assembled in Malaysia aiming the long-term development of the Malaysian automobile market.

"Developing the market potential of the ASEAN region is of major significance for the Volkswagen Group’s long-term growth strategy," Christian Klingler, Member of the Board of Management of Volkswagen AG with responsibility for Sales and Marketing, commented in Kuala Lumpur.

Klingler explained that the Malaysian market, with more than 570,000 vehicles sold in 2010, plays an important role on the strategy of the Group. "We will be using existing structures and capacities at the DRB Hicom plant in Pekan to systematically extend our presence in the Malaysian market of the future," Klingler continued.

At the end of 2012 the Group will be expanding the production of Volkswagen models in Malaysia. The assembly plant in Malaysia will have an initial annual capacity of several thousand vehicles and will be successively increased.

The partner company DRB Hicom has the largest automotive production network in Malaysia and builds passenger cars and commercial vehicles at its plants in Pekan and Melaka. The company is also an important automobile dealer and importer in Malaysia and the owner of a nationwide sales network.