KUALA LUMPUR: German automaker Volkswagen Group has set up its new regional parts distribution centre in Port of Tanjung Pelepas in Johor to provide a genuine parts supply chain to 21 markets in the Asia Pacific region.
With a larger facility of 50,000 sq metre, the new distribution centre can now store more parts and extend the range and depth for better parts availability comprising 65,000 genuine parts of the group's brands of Volkswagen Passenger Cars, Audi, ŠKODA, and Volkswagen commercial vehicles.
Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said Volkswagen Group follows the increasing trend of global companies such as automotive, life sciences and medical devices, electrical and electronics, machinery and equipment in establishing global and regional distribution hubs in Malaysia.
"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," he said in a statement today.
He said robust connectivity is paramount in enabling their investment and human capital to flow more freely across borders.
Volkswagen Group sales head Dr Christian Dahlheim 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," he said.
Apart from the vehicles, he said a strong after sales performance is key for customer satisfaction as Malaysia offers a central and well-connected location which perfectly suits Volkswagen Group plans to expand its foothold in the region.
Located in the free trade zone with direct port connectivity, the new site offers improved distribution and process efficiency and the warehouse processing is enhanced by as much as 15 per cent.
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.
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 Volkswagen Group after sales head Roman Havlásek.
He said the Malaysian government, through the Malaysian Investment Development Authority (MIDA) supported the company's relocation to Malaysia.
"We were pleased by the ease of implementing our project here and the assistance given by the team at MIDA."
Volkswagen Group Asia Pacific after sales director Marco Beitien said despite the unprecedented Covid situation, the Malaysian government swiftly implemented measures to enable business continuity within the safety of workers and community.
"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," he said.
MIDA welcomes investments such as Volkswagen Group to strengthen the linkages within the local industry, while creating jobs for Malaysians and enhancing Malaysia's positioning as a global supply chain hub.