Sunday, 11 March 2012

VW, DRB-Hicom targets 40% local parts by 18 months

PEKAN (March 11): Volkswagen AG and DRB-Hicom are targeting at localising 40 per cent of the automotive components in the next 12 to 18 months, said Dr Christof Spathelf, Senior Vice-President, Group Manufacturing Overseas of Volkswagen AG.

"We are currently preparing the component TECHNOLOGY [] programme to achieve the 40 per cent in the next 12 to 18 months. This will be in phases, 0 to 15 per cent and to 40 per cent finally.

"The vision and target is to achieve 40 per cent. At present, we are bringing the components from Germany to ensure the quality," he said at the unveiling of the completely knocked down Volkswagen Passat 1.8 TSI by Prime Minister Datuk Seri Najib Tun Razak here on Sunday.

DRB-Hicom Group Managing Director Datuk Seri Mohd Khamil Jamil said the event marked a significant milestone that would further augment DRB-Hicom’s commitment to its completely knocked down (CKD) operations for the production of Volkswagen vehicles for the local market and subsequently, the Asean market.

In December 2010, both DRB-Hicom and Volkswagen signed a collaboration agreement to form a partnership to locally assemble Volkswagen vehicles in DRB-Hicom’s automotive manufacturing facility in Pekan.

The Passat 1.8TSI is the first of a few Volkswagen vehicles to be assembled at the DRB-Hicom Automotive Complex in Pekan.

DRB-Hicom's Chief Operating Officer Datuk Lukman Ibrahim said that in achieving the 40 per cent, DRB-Hicom and Volkswagen have a localisation programme which ensures that vendors are within that particular league to be vendors to Volkswagen.

"There will be some training and testing that Volkswagen will have to impose on local vendors to ensure that the programme will cover as much as possible without compromising on the quality of the cars at the end of the day,” he said.

Lukman said DRB-Hicom and Volkswagen have assessed 27 vendors and 20 have met the requirements.

"This is part of the preparations that is taking place until we do the localisation,” he said. - Bernama

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