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Volkswagen Group Strengthens Its Parts Supply in Asia Pacific through the New Regional Parts Distribution Centre in Malaysia

Volkswagen Group Strengthens Its Parts Supply in Asia Pacific through the New Regional Parts Distribution Centre in Malaysia

Kuala Lumpur, 14 January 2021 – Volkswagen Group, one of the world’s leading automotive manufacturers based in Wolfsburg, Germany, has set up its new regional Parts Distribution Centre in Port of Tanjung Pelepas, Malaysia. The strategically located facility aims to provide a robust genuine parts supply chain to 21 markets in the Asia Pacific region.

With this larger facility of 50,000 square metres, the new regional Parts Distribution Centre can now store more parts than its predecessor and thus extend the range and depth for better parts availability. There are approximately 65,000 genuine parts of the Group’s brands of Volkswagen Passenger Cars, Audi, ŠKODA, and Volkswagen Commercial Vehicles.

YB Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI), commented, “Volkswagen Group follows the increasing trend of the establishment of Global and Regional Distribution Hubs in Malaysia by companies in industries such as automotive, life sciences and medical devices, electrical and electronics, and machinery and equipment. These companies seek to tap on Malaysia’s strategic location as well as our efficient and reliable infrastructure such as ports, airports and financial institutions, allowing them to improve operational efficiency and optimise product and service quality and speed for their customers. Robust connectivity is paramount in enabling their investment and human capital to flow more freely across borders.”

Dr. Christian Dahlheim, Head of Volkswagen Group Sales, said: “The Asia Pacific Region offers a lot of growth potential for the Volkswagen Group, especially when it comes to e-mobility. Our electric product range already consists of very attractive models like the Volkswagen ID.3 and ID.4 as well as the Audi e-tron that is fast growing. Apart from the vehicles, a strong After Sales performance is key for customer satisfaction. Malaysia offers a central and well-connected location which perfectly suits our plans to expand our foothold in the region.”

The new site offers improved distribution and process efficiency. Located in the free trade zone with direct port connectivity, the warehouse processing is enhanced by as much as 15 per cent. Moreover, the prime location is well linked to the air hubs and roads, enabling better hub-and-logistics flow and faster cargo turnaround.

The new facility is also customised to Volkswagen Group’s requirements, where storage systems like semi-automated paternoster and vertical narrow aisle are built for better warehouse space and process optimisation. In addition, value-added service is now offered to its customers, such as repacking and relabeling at retail level for the ease of dealer distribution.

“Our new Parts Distribution Centre in Malaysia undoubtedly strengthens Volkswagen Group’s global After Sales supply chain – a key milestone in providing improved genuine parts delivery to our customers in Asia Pacific,” said Mr. Roman Havlásek, Head of Group After Sales. “The Malaysian Government, through the Malaysian Investment Development Authority (MIDA) greatly supported our relocation to Malaysia. We were pleased by the ease of implementing our project here and the assistance given by the team at MIDA.”

The strong fundament of the Parts Distribution Centre made it possible for Volkswagen Group to overcome the challenges brought about by the COVID-19 pandemic in the region so far. Mr. Marco Beitien, Director After Sales for the Volkswagen Group Regional Office in Asia Pacific, said “Despite the unprecedented COVID situation, the Malaysian Government swiftly implemented measures to enable business continuity within the safety of workers and community, which is also our top priority. This allows us to maintain stable parts supply in the region to support vehicles of the Volkswagen Group used in the essential industries like ambulances and security vehicles, even during the critical phase.”

Global supply chains have enabled many MNCs to oversee their operations in different parts of the world with ease, infusing efficiency into business operations.

The Global Trading Centre (GTC) scheme was announced in the Budget 2021, as part of Malaysia’s strategy to further encourage companies, both MNCs and local companies alike, to establish their global and regional distribution hubs. MIDA welcomes investments such as Volkswagen Group that strengthen the linkages within the local industry, create jobs for Malaysians and enhance Malaysia’s positioning as a Global Supply Chain Hub.

The GTC scheme is an enhanced, comprehensive scheme which provides a tax incentive and facilitation to ease import and export activities and aims to support companies in key manufacturing and services sectors venturing into procurement, distribution and trade activities to further strengthen their global supply chain.

Interested stakeholders may obtain more information by contacting the Business Services and Regional Operations Division at MIDA or visiting the MIDA website at www.mida.gov.my.

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

About Volkswagen Group

Based in Wolfsburg, Germany, the Volkswagen Group is one of the world’s leading automotive manufacturers, and the largest car maker in Europe. The Group comprises twelve brands from seven European countries: Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. The passenger car portfolio ranges from small cars all the way to luxury-class vehicles. Ducati offers motorcycles. In the light and heavy commercial vehicles sector, the products range from pick-ups to buses and heavy trucks. Every weekday, 671,205 employees around the globe produce on average 44,567 vehicles, are involved in vehicle-related services or work in other areas of business. The Volkswagen Group sells its vehicles in 153 countries.

In 2019, the total number of vehicles delivered to customers by the Group globally was 10.97 million (2018: 10.83 million). The passenger car global market share was 12.9 percent. Group sales revenue in 2019 totalled EUR 252.6 billion (2018: EUR 236 billion). Earnings after tax in the fiscal year now ended amounted to EUR 14.0 billion (2018: EUR 12.2 billion).

For more information, please contact:

Ms. Rosedalina Ramlan
Director
Business Services and Regional Operations Division, MIDA
Email: [email protected] DL: +603 2267 3515

Mr. Christoph Oemisch
Volkswagen AG
Corporate Communications
Spokesperson Finance & Sales
Email: [email protected]

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