GM Exploring Plans For Plant In Malaysia

Despite General Motors (GM) entering bankruptcy protection in the United States, its Southeast Asia operation is going ahead with future expansion, including exploring plans to open a manufacturing plant in Malaysia.

He said that based on conditions in Malaysia, it would be possible to have a joint venture, adding that GM was prepared to talk to any potential partners, including national carmaker Proton.

In 2007, DRB-HICOM Bhd and General Motors Asia Pacific Holdings LLC (GMAPH) formed HICOM-Chevrolet Sdn Bhd to strengthen the Chevrolet brand in Malaysia. DRB-HICOM holds 49 percent in the new company and GMAPH the remainder.

At a press briefing here today, Carlisle said GM Asia Pacific, including GM Thailand and Asean, would be an important part of the "New GM" and would maintain normal business operations although the world's biggest automaker has filed for bankruptcy in the US.

Asked why GM would want to open a plant in Malaysia when it already has the state-of-the-art manufacturing plant in Rayong, Thailand, Zara said this was necessary to meet different requirements in different parts of the region, especially concerning tax.

He said Thailand provided lower excise duty for pick-ups while Malaysia and Indonesia imposed lower excise duties for locally assembled cars and multi-purpose vehicles (MPVs) respectively.

"If we bring cars from Rayong to Malaysia, the import duty is low but the excise duty is high. Malaysia is also one of the biggest markets for cars in the region and we need to take into consideration this aspect," he added.

via BERNAMA

GM's Rayong manufacturing plant in Thailand

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