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VW to launch a Malaysian subsidiary

German automaker Volkswagen will open a car distribution company in Malaysia next month, a report said.

Volkswagen incorporated the local subsidiary, Volkswagen Group Malaysia, on Dec. 15, and a corporate launch has been planned for next month, said The Edge financial weekly, citing an unnamed Volkswagen Malaysia official.

The Malaysian subsidiary will be headed by the former chief of sales for Volkswagen's Asia-Pacific market, Axel Barth, it said.

The news follows an announcement from Volkswagen last week that it has dropped plans for an alliance with Malaysian automaker Proton.

But Volkswagen, which has been looking to enter the Malaysian market, has also been in talks with other domestic dealers since 2002, and is expected to enlist Quasar Carriage to be its "super dealer," said the weekly.

The Malaysian company currently distributes Volkswagen's Skoda range of cars.

"VW Malaysia prefers to have an exclusive tie-up with a player that does not currently have a major commitment to other brands. Quasar fits the bill because it is also a distributor of Skoda," an industry player was quoted as saying.

Under the move, VW Malaysia will distribute the cars, Quasar will be its super dealer and a local conglomerate will handle the assembly of certain models, said The Edge, citing unnamed sources.
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