Malaysia’s DRB-Hicom has signed an agreement with Volkswagen to assemble and manufacture Volkswagen vehicles in Malaysia.
The agreement, signed yesterday in Singapore, was the culmination of “intense discussion” between the two companies, DRB-HICOM group managing director Mohd Khamil Jamil said in a media statement.
“Both parties anticipate the production of the CKD (completely-knocked down) models in Malaysia,” he added.
The Volkswagen vehicles will be assembled at DRB-HICOM’s largest automotive manufacturing facility in Malaysia in Pekan, in the state of Pahang.
It was a dramatic conclusion of the negotiations between the two companies. DRB-Hicom had, at one stage, been asked to step aside and give way to Malaysian automotive company Proton to negotiate possible collaboration with the German automaker. Both, however, failed to reach an agreement.
DRB-Hicom and Volkswagen resumed talks after the collapse of the Proton-VW negotiations.
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