VW and DRB-HICOM Start Production in Malaysia image

Recently Volkswagen Group Malaysia and DRB-HICOM officially started production for the VW Passat on a SKD basis in Pekan.

The companies also laid the foundation stone for a new production hall on the plant in Pekan, in the presence of the Prime Minister of Malaysia, Dato‘ Sri Najib Razak, and a large number of guests from politics and industry. At this plant are to be produced two additional models, the Volkswagen Jetta and Polo.

“Today’s start of production is a key step in the long-term development of the Malaysian automobile market. By expanding its activities in Malaysia, the Volkswagen Group will significantly reinforce its position in this key market,” said Dr. Michael Macht, member of the Board of Management of Volkswagen Aktiengesellschaft with responsibility for Group Production.

DRB-HICOM is known for producing commercial vehicles and passenger cars at its Pekan and Melaka plants, also being a major vehicle dealer and automobile importer in Malaysia. Two years ago, Volkswagen and DRB-HICOM already laid the foundations for cooperation by signing an agreement for local vehicle assembly at the Pekan plant.

Last year VW saw a growth of 20% in deliveries in the Asia/Pacific region, translating in 2.57 million units compared to 2.14 million from 2010.