Malaysia’s DRB-Hicom and Volkswagen plan to jointly invest up to MYR1bn (US$330m) in a new car manufacturing facility in the Malaysian company’s automotive hub in Pekan, according to prime minister Datuk Seri Najib Razak.

DRB currently assembles the Volkswagen Passat in Pekan but a new joint venture factory will be built to produce the Jetta and Polo models. 

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The cars will be sold locally and exported to other ASEAN markets. 

DRB managing director Datuk Seri Mohd Khamil Jamil confirmed Volkswagen had originally planned to build these cars in Thailand but a meeting with the Malaysian prime minister in mid-2010 helped swing the decision in favour of his country.

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