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By Manik Mehta
FRANKFURT, Sept 24 (Bernama) — A seven-company strong Malaysian automotive mission, organised under the aegis of the Malaysian External Trade Development Corporation (Matrade), has been scouting for business opportunities in Germany.
The mission, which on Tuesday completed a four-day visit to Germany, earlier attended the just-concluded Automechanika trade fair in Frankfurt, where it held 10 meetings with buyers of original equipment manufacturer (OEM) products.
The mission, led by Matrade’s Susila Devi, Senior Director (Products and Services Development), who is considered to be one of Matrade’s top experts on foreign business development, called at the Wolfsburg headquarters of the German automobile giant Volkswagen which “flirted” for some time with the idea of taking over Malaysian carmaker Proton.
“Volkswagen had organised meetings with the Malaysian companies with its purchasing/procurement and quality control people,” Raja Badrul Nizam Raja Kamalzaman, the Cologne-based Malaysian trade commissioner, told Bernama.
Volkswagen finally narrowed down its choice to four Malaysian companies which later participated in one-on-one meetings at the company’s headquarters.
Volkswagen had asked quotations for the supply of automotive wire harnesses from a Malaysian company called JK Sumi Wire Harness.
“But the Volkswagen interlocutors were, generally, happy that Malaysian quality standards meet Volkswagens requirements, even though the Malaysian suppliers will be required to fine-tune their supplies to Volkswagen’s specifications,” Raja Badrul explained.
Another Malaysian company was asked to provide samples of rubber hoses and car mats along with quotations.
Volkswagen showed interest in procuring rear lights, holding out the prospect of giving volumes of some 280,000 pieces per year. “This is indeed a huge volume,” said one Malaysian company representative.
Volkswagen is also interested in other kinds of lights such as interior lights.
Obviously, Volkswagen wants to broaden its supply base in Southeast Asia by considering Malaysia as a source of supply.
In a conversation with this correspondent after her meetings with Volkswagen representatives, Susila Devi observed: “Our impression is that there is lack of awareness among German companies about Malaysia’s capability to supply parts and components on OEM basis.
Thus, the Germans were surprised that Malaysia has been supplying to big names such as Toyota and Honda.
“Our coming here has been an eye-opener for the Germans who realise that, unlike China, Malaysia can supply good-quality value-added products at competitive prices.
By talking to them on a one-on-one basis, any doubts they had about Malaysia’s ability could be removed,” she said.
She confirmed that some of the Malaysian companies in her delegation were asked to provide designs and quotations. Volkswagen, she said, was very keen to source from the Asia-Pacific region and Malaysia stands to gain from this move.
Indeed, Volkswagen had taken a decision to set up a regional sourcing centre in Singapore which will benefit Malaysia immensely.
The delegation also visited the headquarters of another major German industrial company called Miele which manufactures washing machines.
“The delegates met the heads of the purchasing department, dealing with plastic and rubber components and moulding. Three Malaysian companies were short-listed for individual talks and were given specifications of Mieles requirements.
“Miele representatives were satisfied with the quality standards of Malaysian products and said they will visit the plants of the suppliers in Malaysia,” Raja Badrul said.
The delegation later visited the state of Baden-Wuerttemberg in southern Germany.
“We had a meeting with the Baden-Wuerttemberg Landesbank whose specialist for the automotive sector, Matthias Pohl, explained the future direction of the automotive industry.
He highlighted the criteria which Malaysian companies will be required to observe to qualify as automotive suppliers to Germany which is implementing the new EU regulations on carbon-dioxide emissions.
“This will mean that suppliers will have to pay greater attention to the tightened standards which will require new technology,” Raja Badrul said.
The Malaysian delegates held a total of 20 one-on-one meetings in Stuttgart.
In fact, three of the companies were invited to visit the R+D centre of some German companies near Stuttgart.
However, Germany is currently in a near-recession situation which is inhibiting buyers from placing large orders.
This was also evident at the just-concluded Automechanika trade fair where 33 Malaysian exhibitors said there were not enough buyers.
The exhibitors were divided into two groups, one under the aegis of the Federation of Malaysian Manufacturers and the other under the Malaysia Rubber Export Promotion Council.
Malaysia is generally viewed as a reliable supplier of good quality products.
Its exports of automotive parts and components to Germany, according to Matrade, amounted to RM26.39 million in 2007 while exports from January to July 2008 amounted to RM17.28 million.
But, as one optimistic Malaysian put it, this was tantamount to “merely scratching the surface”.
“The potential for business is huge,” he added.
– BERNAMA
Naza Kia is targeting to sell 200 units of Citra II Rondo per month, says Naza Group chief executive officer
NAZA Kia Sdn Bhd has unveiled the Naza Citra II Rondo, banking on the cross-over utility vehicle (CUV) adapted from the new Kia Carens to help it capture 20 per cent share of the multi-purpose-vehicle (MPV) market.
“The local MPV market size is about 45,000 units annually. We hope to increase our share in the segment to 20 per cent with the new Citra II Rondo,” Naza Group chief executive officer SM Nasarudin SM Nasimuddin said.
A monthly sales volume of 200 units of the Rondo is expected, he said at its launch in Petaling Jaya yesterday.
“I am being a bit pessimistic with our monthly target of 200 units. Hopefully, the sales will gradually increase,” he added.
Nasarudin said that steady sales of the Citra prove that Naza Kia’s seven-seaters are popular choices for Malaysian customers.
Naza Kia has actually positioned the two-litre Rondo between the Citra and the bigger Naza Ria MPV, and to be a serious contender in the cross-over segment.
Coming in two variants, the Rondo 2.0 EX sells at RM84,888, while the high-line version Rondo 2.0 EXS costs RM88,888.
Nasarudin emphasised that the company has focused on giving customers value for money.
He pointed out the long list of standard equipment, including dual-front airbags, anti-lock brake system and electronic brake distribution, stylish side mirrors and a Shiftronic gearbox.
Compared with the Citra, the Rondo has some changes at the front and rear ends.
Customers can order their Rondo with a choice of four colours: fine silver, black cherry, urban grey and volcanic red.
Petaling Jaya, 15 September 2008 – Naza Kia Sdn Bhd today launched the 2.0L 7-seater Naza Citra II Ronda at their Naza Auto Mall. This event was officiated by SM Nasaruddin SM Nasimuddin, CEO, Naza Group of Companies, Jimmy Im, Managing Director, Asia Regional Headquarters Kia Motor Corporation and other invited guests.
“The Citra Rondo is a crossover utility vehicle (CUV) that combines comfort and convenience with utility value,” said SM Nasaruddin.
“In 2007, 45,000 MPVs were sold and as per this year 32,000 units were sold which represents an increase of 20%. This segment is a growing segment and the Rondo is therefore positioned in between the Citra and Ria,” he added.
“Our sales target is to sell 300 units per month,” he elaborated.
It is built on the same platform as the Optima including sharing the engine, transmission and chassis components. There will be two variants, the EX and EXS and both are powered by the 2.0L DOHC CVVT engine. The EX comes with body-coloured door handles, body-coloured side moldings and black front grille crossbars while EXS comes with a roof rack and 16-inch alloy wheels.
The 4-cylinder engine is rated to produce 145 horsepower and 189 Nm of torque with the electronically controlled Sportmatic transmission.
The EX variant’s price is RM85,636.10 and the EXS RM89,641.30 on-the-road with insurance for company registration in Peninsular Malaysia. The four colour choices are Fine Silver, Black Cherry, Urban Grey and Volcanic Red.
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