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DRB-HICOM-Volkswagen JVs Can Transform Pekan Into World’s Automotive Hub, Says Najib

By Sunday March 11th, 2012 No Comments

PEKAN, March 11 (Bernama) — Various joint ventures between DRB-HICOM Bhd and Germany-based Volkswagen will transform Pekan into a well-known automotive hub worldwide, Prime Minister Datuk Seri Najib Tun Razak said.

He said the collaboration had yielded immense benefits for the locals directly and indirectly particularly creating numerous job opportunities, thus increasing their income.

“I’m confident the various joint ventures between the two companies will propel Pekan into a well-known automotive hub in the world, especially in car assembling work, manufacturing automotive components and research and development in the automotive sector,” he said when launching the completely knocked down Volkswagen Passat at the DRB-HICOM Automotive Complex here.

Najib said the tie-up, established since December 2010, had created 3,300 jobs for the people in Pekan.

“The tie-up has brought in RM1 billion investment in four years. The investment will be a major contributor to the local economy,” said Najib, who is also Pekan Member of Parliament.

The prime minister said the launch of the completely knocked down assembling of Volkswagen Passat today marked an important history in the country’s automotive industry.

Najib said he hoped this collaboration would be an example, signifying a successful tie-up between a local company and a foreign car maker.

He said the tie-up would help uplift the domestic automotive industry to a higher level in tandem with the government’s plan to transform Malaysia into one of the leaders of the regional automotive hub.

“I was informed that a first batch of 300 units of Volkswagen Passat have been assembled at the complex in Pekan in accordance with the stringent quality standard set by DRB-HICOM and Volkswagen.

“I was also informed that several volkswagen models such as Polo and Jetta will be assembled here soon. I hope this will be a reality,” said Najib, who test drove a Volkswagen Passat, witnessed by some 1,000 attendees.

He gave a thumbs-up to the car, saying “the car is of very good quality.”

Najib said besides taking shape as an automotive hub, Pekan is also being developed as part of a cluster of towns, encompassing Kuantan, Gambang and Gebeng in the likes of major cities like Johor Baharu, Penang and Klang Valley.

He said the government has made various investments to upgrade infrastructure facilities to woo more investments to Pekan.

The Pekan Automotive Park, for instance, would become the catalyst to the government’s plan to attract RM4.5 billion investment, which would create 10,580 jobs, and would contribute RM12 billion to the National Gross Domestic Product by 2015, he said.

The prime minister also urged the automotive industry to increase their competitive edge and conduct a restructuring exercise to boost car production on a big scale.

“When the production volume reaches an appropriate level, it will pave the way for increased investment flow, quality workforce and significant progress in research and development initiatives,” he added.

Source : Bernama

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