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Govt welcomes German carmakers for third national car project

KUALA LUMPUR: Malaysia has opened its doors to German automakers to help develop the new national car project.

The invitation is indirectly extended to giants such as Volkswagen AG, BMW AG and Mercedes-Benz which are known to have major assembling operations in the country.

Deputy International Trade and Industry Minister Ong Kian Ming said there were many successful German automakers that had been assembling vehicles here with higher local content.

“It clearly shows their success in Malaysia and if anyone is interested in exploring opportunities in a third national car project, we are open to any suggestions,” Ong said at Malaysia-Bavaria Trade and International Cooperation and soft launch of ACES-Industry 4.0 by East Coast Economic Region Development Council (ECERDC) here today.

Also present were German ambassador to Malaysia, Nikolaus Graf Lambadorff and ECERDC chief executive officer Datuk Seri Jebasingam Issace John.

Asked whether the government had received any proposal from the German automakers, Ong said it would be better to wait for an announcement.

Last week, Ong said the government had received 14 proposals from the private sector on the proposed third national car project

Commenting on the prospect, Lambadorff said many may not know that that there was a lot of German vehicles produced in Malaysia.

“There are at least four German car manufacturers planning to expand their operations in Malaysia to increase their production. They are not only want to explore the market in Malaysia, but also in Asean countries. However, I have not spoken to them (about the third national car project), so I do not know (their feedback),” he said.

About 35 years ago, Malaysia became the first country outside of Germany to assemble Mercedes-Benz’s flagship S-Class, with the legendary W126 generation model.

The group currently produces 12 models locally at its production plant in Pekan, Pahang.

Volkswagen produces some VW models such as the Passat and Vento in Pekan too, which is within local partner DRB-HICOM Bhd’s automotive complex there.

BMW, on the other hand, has an assembly plant in Kulim, Kedah in partnership with Sime Darby Bhd. It produces certain variants of the 3 Series and 5 Series models, among others.

The factory is among 30 production sites in 14 countries around the world for the BMW Group and is an important touch point for it in the Southeast Asian region.

Meanwhile, Jesabingam said the government had invested RM12 million in providing buildings and facilities for ACES centre of excellence that will start operations early next year.

“ACES establishment is in line with the government's aspiration in producing productivity-driven economies and this centre is not just for Pahang, but across the country and Asean,” he said.

ACES is a joint initiative between ECERDC and Germany’s TUM International GmbH in Gambang, Pahang.

It will provide consultancy services, advisory services, industry certification 4.0 and training in smart practices and technologies for Malaysia and Southeast Asia.

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