DRB-HICOM and Volkswagen AG has signed Memorandum of understanding (MoU) for CKD manufacturing in Pekan.

Look like the dream of owning a Volkswagen for the masses here in Malaysia would become a reality as yesterday DRB-HICOM and Volkswagen AG has signed a memorandum of understanding (MoU) to collaborate on the assembly and manufacturing of VW car here in Malaysia. It is not a surprise VW would find another partner here in Malaysia after the failed talked with Proton as Volkswagen is really looking forward of having a car manufacturing facilities here in Malaysia as Malaysia has the biggest share of selling cars compared to other ASEAN region.

The MoU was sign at Volkswagen center in Singapore between the DRB-HICOM group managing director Datuk Seri Khamil Jamil with Volkswagen senior vice president, group manufacturing overseas, Dr Christof Spathelf and its head of sales for China and Asean, Soh Wei Ming.

This MoU will pave way for DRB-HICOM and Volkswagen to jointly plan the production of Volkswagen models here in Malaysia and currently both parties is in intense discussion of having a CKD (Completely Knocked Down) models here in Malaysia. As we may know, DRB-HICOM has its automotive manufacturing facilities in Pekan, Pahang, thus, the CKD programme will commence at its full fledge facilities once all the necessary facilities are up and running.

"We hope the entry of Volkswagen, Europe's biggest vehicle manufacturer into Pekan, would help to spur its transformation into a vibrant and self-sustaining regional automotive hub, as envisioned under the East Coast Economic Region initiative," said Mohd Khamil.

Accoding to Mohd Kamil, The group will also look at engaging the full participation of its component manufacturing companies, in a move to support Volkswagen's localisation programme, in line with the National Automotive Policy

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