KUALA LUMPUR: DRB-HICOM BHD [] has entered into a collaboration and license agreement with Volkswagen AG (VW) and Volkswagen Group Malaysia Sdn Bhd (VGM) to collaborate in the assembly of Volkswagen vehicles in Malaysia.
Under the agreement, VW has granted DRB-Hicom the the exclusive, non- assignable and non-transferable right to assemble selected completely knocked down (CKD) VW models with VW's specifications and quality requirements in Malaysia.
For its part, VW will supply CKD kits and provide relevant engineering and technical support to enable DRB-Hicom to assemble the CKD models and their parts.
DRB-Hicom will then sell the products exclusively to VGM's subsidiary for onwards distribution and sales, and it will also import completely built-up VW brand passenger cars which in turn would be sold to VGM's subsidiary.
DRB-Hicom said on Tuesday, Dec 21 that by becoming an exclusive assembler of selected models of VW brand passenger cars in Malaysia, the collaboration would allow it to expand its vehicle assembly and component manufacturing activities and further strengthen its position in the local automotive industry.
'The collaboration will also allow the group to participate in VW's future export programme for certain Volkswagen brand passenger cars to the Asean market,' it said.
The company said the collaboration expenditure would be funded by internally generated funds and bank borrowings.
DRB-Hicom said the parties had agreed that the collaboration's expenditure would not exceed '133.7 million.''
Under the agreement, VW has granted DRB-Hicom the the exclusive, non- assignable and non-transferable right to assemble selected completely knocked down (CKD) VW models with VW's specifications and quality requirements in Malaysia.
For its part, VW will supply CKD kits and provide relevant engineering and technical support to enable DRB-Hicom to assemble the CKD models and their parts.
DRB-Hicom will then sell the products exclusively to VGM's subsidiary for onwards distribution and sales, and it will also import completely built-up VW brand passenger cars which in turn would be sold to VGM's subsidiary.
DRB-Hicom said on Tuesday, Dec 21 that by becoming an exclusive assembler of selected models of VW brand passenger cars in Malaysia, the collaboration would allow it to expand its vehicle assembly and component manufacturing activities and further strengthen its position in the local automotive industry.
'The collaboration will also allow the group to participate in VW's future export programme for certain Volkswagen brand passenger cars to the Asean market,' it said.
The company said the collaboration expenditure would be funded by internally generated funds and bank borrowings.
DRB-Hicom said the parties had agreed that the collaboration's expenditure would not exceed '133.7 million.''
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