Volkswagen starts production in Malaysia image

German automaker Volkswagen and its Malaysian partner DRB-Hicom had begun the production of Passat vehicles in Malaysia by breaking ground on a new manufacturing facility.

Prime Minister Datuk Seri Najib Razak said the $417 million collaboration between DRB-Hicom Berhad and Volkswagen AG was a perfect example of how a private sector driven initiative could contribute towards Malaysia’s aspirations to become a leading automotive hub, with the strong support of the government.

The CKD Passat, which is the first Volkswagen model to be locally assembled, is priced at RM170,888 which is RM14,000 lower compared with the CBU (completely built up) version.

Both the CKD and CBU versions have similar specifications.

Established in December 2010, the joint venture has so far invested MR1bn and assembled about 300 units of Passat 1.8TSI at the complex.