GM plans to produce Chevrolet cars in Malaysia

[paddyk]

KUALA LUMPUR: General Motors Corp (GM) aims to expand the manufacturing of the Chevrolet car models to Malaysia, with details to be finalised in the next few months.

South-East Asia operations president Steve Carlisle said the plan was currently at the study stage with details such as the number of vehicles to be manufactured and when production would start, to be firmed up over the next few months.

The rationale behind the move was GM's policy of “building where we sell,” he said.

“Our intention is to add to General Motor's Thailand story by extending our manufacturing presence to Malaysia,” he said at the launch of three new Chevrolet models yesterday.

Currently, GM manufactures models of the Chevrolet brand for the South-East Asian market at its 142,000-unit per year capacity, 66ha plant in Rayong, Thailand.

In Malaysia, the manufacturing of Chevrolet models would be in partnership with DRB-HICOM Bhd, under Hicom-Chevrolet Sdn Bhd, Carlisle said.
Meanwhile, the new models launched were the latest versions of the Optra Magnum Estate 1.6-litre, Optra Magnum Sedan 1.6-litre and 1.8-litre, and Aveo 1.4-litre.

On-the-road prices with insurance for the models start from RM95,205.50, RM88,023.50 and RM72,587.20 respectively.

Hicom-Chevrolet chief executive officer Yukontorn Wisadkosin said the new models would appeal to Malaysian drivers' “taste and sense of distinct individuality”.

For example, the Optra Magnum Sedan comes with traction control and option of a sporty aero kit, the Aveo now has a refined and luxurious interior while the Optra Magnum Estate provides generous space and a sporty design while staying true to its family-oriented design.

All three models were expected to contribute equally to Chevrolet sales in Malaysia but the Aveo model would likely have the largest volume as it targeted a larger market segment, she said.

To date, Hicom-Chevrolet had six 3S (sales, service and spare parts) centres and was on track to meeting its target of 15 such centres in Malaysia by year-end, she said.

As a start of efforts to turn around the Chevrolet brand in Malaysia, “Chevrolet will be represented by nothing less than a 3S centre or dealership”, she said.

She added that Chevrolet would honour valid warranties issued in the past to 14,000 to 15,000 existing Chevrolet customers and provide after-sales servicing for vehicles sold by previous dealers.

On the lack of spare parts for previous models, she said Chevrolet was leveraging on GM's global network to ensure a supply of parts.

“We will release the pricing of the parts in a month or so,” she said

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[plane]

Great find!
GMI has done a lot of discussion on why GM should or should not have purchased Proton.

Well, it looks like GM has a viable strategy without Proton and is moving forward.
With the 19.6% sales gain in South America/Africa/Middle East,
ramping up in India and Russia,
and still selling strong in China,
GM seems to be on a roll around the world.

[Ming]

I really like seeing GM branch out across the globe like this. It makes much more sense than retreating into a shell of making only distinctly American vehicles at home in a shrinking market, with a few disconnected subsidiaries abroad.

The only unfortunate thing is that GM here at home didn't take small, fuel efficient cars seriously enough that, like Japan, we could export hundreds of thousands of American made cars to the rest of the world. Instead for many years we exported a trickle of vehicles like the S-10 Blazer, Chevy Venture and Astro. And for that matter, even GM's Opel subsidiary couldn't pull it off in the long run, despite having cars that were perfectly positioned for a global market and were sold in places like India, Australia, and even Japan at one point. At least we have companies like GM Daewoo to take up the slack and make huge inroads in Europe (as "Chevrolet"), China and elsewhere where people appreciate cars like that, but it would have been nice to have had a class-leading Cavalier built by American hands be a name on the lips of car buyers worldwide like the Corolla or Civic.

The Japanese are not cheap laborers, yet they still manage to sell us their inexpensive rides like the Scions or the Fit. Something tells me that it wasn't just Union Wages to blame for GM North America's small cars never getting a good rep worldwide. It was a lack of focus and desire to sell such cars, I think.

[GM lover]

I am glad to see GM expanding

[2648562]

^Totally. With GM selling off profitable North American divisions all the time, I get a little upset with them expanding overseas. Especially when it seems GMNA is being neglected. But I do understand GM needs to expand their presence worldwide if they're going to be able to compete with the likes of Toyota here in this country. And I have a feeling GM's sell where they build philosophy isn't always their first choice. I just hope GM, in their not exactly financially strong state, doesn't bite off more than they can chew and has the right people in place to manage their increasingly complex core business that they've not managed well in more then 30 years.

[FenwickHockey65]

Well, when you think about it, the lessons GM learns overseas will benefit its North American brands. Just look at Saturn. Gone are the days of cheapo plastic everywhere. GM learned that people liked Opels and incorporated it into Saturn.

[mbukukanyau]

GM is going to milk the optra plartform until it becomes another pontiac Grand Prix,

[TKR]

Originally Posted by mbukukanyau

GM is going to milk the optra plartform until it becomes another pontiac Grand Prix,

No. The vehicle (also known as Viva, Lacetti amongst others) is due to be replaced later this year by a new vehicle based on the new Delta II architecture. Hopefully there will be a new Wagon, Hatch and sedan.

[Robert Ryan]

The Japanese are not cheap laborers, yet they still manage to sell us their inexpensive rides like the Scions or the Fit. Something tells me that it wasn't just Union Wages to blame for GM North America's small cars never getting a good rep worldwide. It was a lack of focus and desire to sell such cars, I think.

You are right about that. Factor in the very poor quality small vehicles produced by the various US car companies and an inability or as you say it "lack of focus", to make anything better. They are still pretty behind the eightball and it shows.

At least we have companies like GM Daewoo to take up the slack and make huge inroads in Europe (as "Chevrolet"),

I would not get too excited by GM Daewoo products, as their cars have not had a stellar track record in Australia.

[tgagneguam]

Interesting, GM expands overseas, and the overseas divisions seem to do well; the divisions experience revenue and profit growth.

In North America, where the plan seems to be to cut back (and cut back, and cut back some more, to go beyond shaving the marrow of the carcass), revenue growth is harder to come by, and profit has eluded the largest NA automaker/seller for quite some time. Giant fixed costs remain a strain to address. More recently, when GM has stabilized its share in NA, when it has once again focused on product and retail sales, profits seem to have stopped their decline, and revenue seemed to have experienced a bit of a bump.

Hmmm, I know there's a lesson in there somewhere, GM.

[unkillsam]

Originally Posted by Robert Ryan

You are right about that. Factor in the very poor quality small vehicles produced by the various US car companies and an inability or as you say it "lack of focus", to make anything better. They are still pretty behind the eightball and it shows.

I would not get too excited by GM Daewoo products, as their cars have not had a stellar track record in Australia.

The Yen being worth more then $100 dollars at the time certainly contributed to it.

[nadepalma]

I guess this is supposed to make up for the failed deal with Proton over the last 2 years? I hope that they get everything up and running in short order..

[1999 White C5 Coupe]

Will the Chevrolets built in Malaysia still be "An American Revolution!"?

[mang01]

Originally Posted by unkillsam

The Yen being worth more then $100 dollars at the time certainly contributed to it.

You missed it by that much (try 100yen being worth more than US$1) it's currently only 98US cents to 100Yen after retreating from just over US$1 (or 100cents) for the first time ever recently; it had been as low as 81US cents in the middle of last year - the lower the number of US cents the more valuable the US currency is to the other one). But the yen is just one currency that it has lost ground against in the last year or more (78c to the Oz$ in late 2006, now 92c, so a simliar loss of value).

[t-rex]

GM has history in Malaysia too. From the late '60s up till about 1980, Capital Motor Assemblies built various Opel and Isuzu products for GM Malaysia. Popular models included the Opel City (T-body Kadett hatchback), Opel Gemini (Isuzu), and Opel Commodore (73/77 Rekord). One of the precious irreplaceable things I lost in Katrina were some GM Malaysia brochures from around 1977. I never could find out specifically why they went out of business. Probably because of the ever-encroaching Japanese.