Blog: Dave LeggettSmart move by VW

Dave Leggett | 27 October 2004

Looks like a smart move by Volkswagen to take up some of Proton's unutilised capacity in Malaysia. It gets VW a foothold sales and manufacturing foothold in Malaysia but also in the ASEAN trading bloc and free trade area, opening up the possibility of expanded sales in other countries of southeast Asia too. Most importantly, it does it all realtively cheaply and shifts VW's Asian policy away from over-reliance on developments in China.

Thus far, VW's Asian strategy has been focussed almost exclusively on its Chinese operations. That's fair enough, but being too Sino-blinkered wouldn't be a good thing going forward as VW's margins are under attack there and market share is destined to fall as more capacity from numerous market rivals comes on stream. 

I wonder what models will be made in Malaysia? Bora/Jetta, Golf? Polo? Fox in kits from Brazil?


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