PETALING JAYA: Volkswagen Group Malaysia Sdn Bhd expects to finalise its plans for an assembly plant for its completely knocked down (CKD) models in Malaysia by the first half (1H) of this year, said managing director Andreas Prinz.

The company and its local partners were now looking at some options including the plant’s potential location, he said.

“Once finalised, it will take us about 15 to 18 months to set up our plant here,” Prinz told the press at the launch of the first Volkswagen 3S Centre here yesterday.

He said Volkswagen had not decided which models would be assembled here but they would likely include Golf GTI and Beetle.

According to Prinz, 1.5 million units of the German marque were sold in Asia last year, with China as its largest market. As for its Malaysian business, he said Volkswagen aimed to double its market this year from the 900 units sold in 2009.

Prinz said the group would offer several other models, such as the Golf, Polo and Scirocco, by the middle of this year. The company currently offers 10 Volkswagen models in the local market.

FA Wagen Sdn Bhd, a unit of Federal Auto Holdings Bhd, has invested RM1.2 million to set up the new Volkswagen centre.

Federal Auto managing director Cheng Seng Fook said FA Wagen expected to open two branches within the next 12 months.

A purpose-built six-storey flagship in Glenmarie, Shah Alam, costing RM6.5 million is due to open its doors in September this year while its 3S branch in Johor Bahru is slated to commence operation early next year.

In total, FA Wagen would have invested around RM10 million in its expansion plans, said Cheng.

FA Wagen took over the authorised Volkswagen dealership in Jalan 222, Petaling Jaya in November last year. The branch is also the first authorised outlet in Malaysia to comply completely with Volkswagen’s new corporate identity.

It contains a generous 4,600 sq ft showroom, capable of showcasing up to seven cars. The full-fledged service centre is equipped with eight work bays and is able to service up to 200 cars a month.

The substantial investment in the new Volkswagen’s branches reflected FA Wagen’s confidence in the marque and its growth potential in the Malaysian market, said Cheng.


This article appeared in The Edge Financial Daily, March 24, 2010.