As soon as VW announce its purchase of 20% of Suzuki, at least 2 major VW related news hit the web. One is regarding VW's goal of controlling up to 10% market share of the Indian car market within the next 4 to 6 years. Another is the announcement of joint development between VW and Suzuki for a small low cost car, speculated to be the Alto replacement. The two back to back news reflects the level of background planning and due diligence that have already been conducted prior to this. There is a very clear goal in VW's intention of increasing its stake in Suzuki. Contrast this with the take over of Chrysler by Fiat. Until today, nobody is certain what will happen to Lancia or Alfa Romeo. While Sergio Marchione have already announced his plans for Dodge, Jeep and Chrysler - the long term direction of these American brands is still not quite crystal clear. Part of his options laid out is to rebadge Lancia models as Chrysler, to be sold outside Europe. I wonder how in Marchione's infinite wisdom believe this is going to work out. Fiat's purchase Chrysler appears to be one of "buy first, plan later."
Part of VW's plan for India is to increase its dealer network to 200 showrooms within the next 2 or 3 years. At the moment, VW brand vehicles only controls a dismal 2% of the Indian car market while Maruti-Suzuki controls more than 60%. The group's presence in India is mainly via Skoda. Of course, supporting this expansion is VW's new plant in Chakan, West India, that has an annual capacity of 110,000 units. It currently produces the VW Polo and Skoda Fabia hatch while an unspecified estate will also be assembled by second-half of 2010.
Maruti Suzuki have also hinted that the replacement for the Alto (known in India as A-Star) minicar could be jointly developed with Suzuki, with a target price of around USD 4,300 to USD 5,400. The VW-Suzuki model will be slotted below the cheapest VW branded model - the Up!, that will be launched in 2011 with an estimated price of USD 8,800. But introduction of the Up! in India as well as other developing markets of Asia is still unconfirmed.
The current Alto is the best selling car in India, controlling more than 50% of the segment. It is also developed in India (rather than Japan), with many of the engineering input from Indian engineers. The Alto is currently only made in Maruti-Suzuki's plant in Manesar, India and is exported to Australia and Europe. It is a far better example of technology transfer that benefits the locals, contrast this to result of deal that the Malaysian government offered to Daihatsu via Perodua. Though the company is always keen to point out that x number of engineers are sent to Daihatsu in the process of developing a particular model.
4 comments:
"Though the company is always keen to point out that x number of engineers are sent to Daihatsu in the process of developing a particular model"
Are these x number going to Japan to have fun or are they really involved in the developing??
I would just say: "Involved in developing" my @$$.
Typical P2 BS.
Same thing many have been saying behind anonymity. Many uuto parts suppliers and automotive marketing related services companies have been saying the local staffs in P2 know surpringly very little. It's mostly suppliers that have the knowledge to do many of the job tasks.
It appears that DMC is unwilling to share many of the intellectual property, reducing P2 to nothing more than Japanese car assembly plant (ok fine they do cylinder heads and metal stamping as well but you get my drift) partially paid for by Malaysian tax payer.
Surprisingly I have also come across a number of very competent Proton staffs. But unfortunately many of them have left the company, for one reason or another. Najib is concerned on brain drain?
Come on guys, reality strikes and embrace the facts that P1 pay peanuts. Only those who really appreciate the job or have passion (or those who comfortable enough and not be able to move anywhere) will stay. Ask Petronas, why did the staff hardly found resistance to the temptation of joining Aramco or gulf oil co hard to come by? They'll approach you and say "I'll pay you 5 times more than what youre getting" and they say the rest is history.
P2 was established as a backup to P1 programme (getting Jap money to eased off Thai's success). Its just natural for them to have to bow to the Nihon-jin and doing screwdriving job for the mother company (with Malaysian face). At least we have jobs (of designing bumper and fixing jigs).
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