VW to assist Proton to develop 2-3 models
Volkswagen AG (VW), which is seeking a local joint venture partner to assemble its vehicles, will assist Proton Holdings Bhd to develop up to three new models for the domestic market.
“We have started discussions, with proposals from both parties but it is likely to be cooperation on two to three models for Proton in the domestic market,” said VW executive director of sales international Kevin Rose.
“Discussions are taking place in an amicable environment. This is to potentially give them (Proton) access to cars not in their portfolio at the moment,” he told reporters after the official opening of VW Malaysia's corporate headquarters in Kuala Lumpur on Feb 16.
Volkswagen Group Malaysia Sdn Bhd managing director Axel Barth said Proton had asked for specific help and support from VW on a project-by-project basis.
“This is our answer to Proton to go upstream in the future,” he added, but did not elaborate.
Proton recently said it had rejected VW's request for control of the national carmaker's facilities, leading to the the breakdown of talks on the proposed collaboration between the two.
The two parties later decided to cooperate on specific projects that include the supply of products and components by the German auto maker.
Proton recently also entered into an agreement with its former strategic partner, Mitsubishi Motors Corporation of Japan, in a collaboration to develop new Proton vehicles by early 2007.
On VW’s local assembly plans, Rose said VW would initiate preliminary discussions with the public listed car manufacturers next week to start the assembly by 2008.
“We have a team coming here next week, we will start some initial discussions with two to three potential partners.
“We have plans to start production in Malaysia by 2008. This will give us 18 months to two years to build our brand and network,” he said.
He said VW recognised the importance and potential for Malaysia in assuming the role of a regional hub for the group due to its stability, infrastructure and resources.
“It is of course, very much a part of our Asean strategy to establish corporate presence in Malaysia.
"However, we would like to focus on building the brand and business locally while ensuring our seamless debut into Malaysia,” Rose said.
He said investments for production facilities here would depend on various factors such as the size of the facility and equity investment of the potential joint venture.
Rose said VW had invested 9.5 million euro (RM41.8 million) in setting up its local unit. It recently appointed AutoStadt Asia Sdn Bhd as the sole importer of Volkswagen cars in the country.
He said VW Malaysia planned to introduce at least eight new models within the year, which include Polo, Passat, Touareg, Golf, Golf GTI, New Beetle and the Jetta.
Moving forward, Rose said VW hoped to sell 3.3 million cars globally and to reach four million cars in the next few years, mainly in the South America, Asia Pacific, Africa and Middle East markets.
“We hope one day, this region (Asia Pacific) will give us around 250,000 to 300,000 cars,” he said.