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VW to focus on brand building for sustainable growth
Malay Mail

KUALA LUMPUR, Jan 27 — 2016 has been a tough year for the motor industry, with most carmakers registering a drop in sales. The end of the slide is not yet in sight, fuelled by rising costs of living and not helped by the weak ringgit. Total TIV (Total Industry Volume) dropped 13 per cent year on year to just over 580,000 units sold. Volkswagen recorded 6,048 units sold for 2016, a drop of 5.5 per cent.

At a special ‘round table talk’ session with some motoring and business journalists last week, Volkswagen Passenger Cars Malaysia (VPCM) spoke of its plans for 2017 and onwards.


The VW Vento. — Picture by YS Khong

The round table talk session was chaired by the two Managing Directors, Erik Winter, Managing Director, Brand and Human Resource, who came on board just a month ago, and Florian Steiner, Managing Director for Aftersales, IT, and Finance. Also sitting in was Roland Ooi, Brand Director.

Winter stated that whilst sales numbers are important to sustenance, VW shall be putting more emphasis on building up the brand. He said that the company will be working to maintain its market share in 2017 while embarking on some other activities to build the brand.

VPCM will concentrate on its four key models, the Polo, Vento, Jetta and Passat, which are currently locally assembled. Imported models such as the Golf and GTi, as well as other models will continue.


The VW Tiguan. — Picture courtesy of VW Malaysia

In the pipeline are two new model launches, the all-new Tiguan and the New Beetle. These new models should create some interest in the market — the all-new Tiguan will be built on the MQB platform and will be larger than the outgoing Tiguan — some overseas media have tested the pre-production vehicles and so far the reviews have been very positive. The all-new Tiguan fills up a very important segment for an SUV that is smaller than the Touareg which the outgoing Tiguan could not on account of its small size. Going a step further, the all-new Tiguan has an additional third row of fold-flat seats that can be put into good use especially for extended families. From what we hear, the Tiguan will be locally assembled, which means it will be competitively priced.


The VW Passat. — Picture by YS Khong

VPCM also plans to expand its network, both in sales and after sales, expanding the current 31 outlets with another four within the first and second quarter of 2017. In Q2, there are plans to launch the ‘Volkswagen Academy’, a VPCM-dedicated training academy with full-fledged trainers for technical, non-technical, parts, service and sales training. The centre shall be housed on four floors, with a total daily capacity of up to 150 trainees.

Florian Steiner also reiterated that VPCM has in fact started the brand building initiatives, pointing out that VPCM has already put into place a 5-year manufacturer’s warranty, and goodwill warranty on certain items. VPCM also has in place ‘on site coaching’ (for dealers with difficult service problems to consult) and Parts Urgent Order to respond for emergency parts.

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