Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Friday, February 11, 2011

DRB-HICOM, VW to assemble Passat in November

PEKAN: DRB-HICOM and Volkswagen AG will start production in November with the assembly of Volkswagen Passat sedan 1.8 litre at the automotive complex in Pekan.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed described it as an important development especially for the country's automotive industry.

“This is the result of a collaboration between DRB-HICOM with Volkswagen sealed in December last year. There are now 20 personnel from VW AG's headquarters here to discuss and finalise the production operations expected to take place this November,'' he told reporters after a tour of DRB-HICOM Automotive Complex here yesterday.

A collaboration and licence agreement with Volkswagen worth RM1bil was signed last year following a memorandum of understanding by both parties in August to study the feasibility of locally producing Volkswagen passenger cars in Malaysia.

DRB-HICOM and Volkswagen have agreed to share costs in a ratio of 70% to 30%, respectively.

The Pekan plant is expected to manufacture between 40,000 to 50,000 Volkswagen cars annually.

DRB-HICOM group chief financial officer Datuk Lukman Ibrahim, in his speech earlier, said the recent collaboration with Volkswagen would witness the assembly of selected Volkswagen cars in the plant.

“With the CKD (completely knocked down) plan in place, both parties have agreed to systematically expand the Volkswagen production as well as its localisation plan.

“This will not only create new job opportunities, in particular for Pekan but also stimulate our local automotive manufacturing industry via introduction of better technology, quality products and standards,'' he added.

He also said the deal was a private-funding initiative, in line with the Government's call to boost the country's economy and for that, Volkswagen would invest RM300mil at each stage of the joint venture.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts Plugin for WordPress, Blogger...