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Almost 5 years ago, Volkswagen AG moved its regional aftersales centre from Singapore to Malaysia, opening a new facility at the Port of Tanjung Pelepas (PTP), a free trade area in Johor. It was the second major carmaker after BMW AG to use PTP as a regional facility for Asian markets. However, BMW, which had moved its facility from Sembawang in Singapore to PTP in 2003, shifted to an industrial zone next to Senai Airport in 2017.

Parts for four brands
Volkswagen’s facility would eventually serve 21 markets in the Asia-Pacific region, storing tens of thousands of parts for the Volkswagen, Audi, Skoda and Volkswagen commercial vehicle brands of the German group. The idea of having a warehouse in Malaysia is to speed up deliveries of parts to distributors in Asia. By keeping parts in a strategic location, delivery times can be shortened compared to having them come all the way from Europe.

PTP Johor
The Port of Tanjung Pelepas in Johor includes a Free Trade Zone (right) for companies using the strategic location as a regional hub to operate their warehouses.

Enlarged facility
With its business continuing to grow in Asia, Volkswagen must see a need to stock more parts and has set up a new Regional Parts Distribution Centre in PTP with a larger area of 50,000 square metres.

The new and larger facility, with direct port connectivity, offers up to 15% improved distribution and process efficiency. It is 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.

Improving parts delivery in the region
“Our new Parts Distribution Centre in Malaysia undoubtedly strengthens Volkswagen Group’s global aftersales supply chain, a key milestone in providing improved genuine parts delivery to our customers in Asia Pacific,” said Roman Havlasek, Head of Volkswagen Group’s After Sales.

“Malaysia offers a central and well-connected location which perfectly suits our plans to expand our foothold in the region,” added Head of Volkswagen Group Sales, Dr Christian Dahlheim.

“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. Besides vehicles, a strong aftersales performance is key for customer satisfaction,” he said.

Having a regional centre as well as a local hub means service centres can get parts faster.

Contrary to what some parties in Malaysia suggest, this is not a factory making automotive parts. It is only a storage facility for completed parts shipped from Europe and then despatched to various markets.

Parts from the Regional Parts Distribution Centre will be shipped to distributors in the various markets by air or sea, or in the case of Malaysia and Singapore, by road. For the Malaysian market, Volkswagen has a Parts Hub in Shah Alam, Selangor, to serve the market. It has been in operation since 2016, initially getting parts from the regional centre in Singapore and then PTP in Johor.

It is unlikely that the facility at PTP serves the assembly plant in Pahang which makes Volkswagens for the Malaysian market. That plant, within the HICOM Automotive Manufacturers (Malaysia) Sdn. Bhd. complex in Pekan, would receive the CKD (completely knocked-down) packs of parts from Port Klang. Genuine parts come from the master depot in Kassel while CKD packs are prepared at Wolfsburg in Germany.

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The population of Mitsubishi vehicles in Malaysia has been growing, especially with the popularity of the Triton and undoubtedly with the coming Xpander model. As the number of vehicles increases, so too will the demand for replacement parts.

In a proactive move, Mitsubishi Motors Malaysia recently migrated to a new parts warehouse in Shah Alam, Selangor as part of an expansion plan to meet with increasing aftersales demands.

Faster delivery of parts
The new facility has a storage capacity of up to 40,000 square feet, enabling the consolidation of all holdings under one roof to improve warehouse operations. This move will also speed up delivery of parts required by all authorized service centres nationwide.

Mitsubishi Motors Malaysia

“The relocation of our warehouse is in line with the continuous growth of Mitsubishi Motors business in Malaysia. The new parts warehouse is located at a strategic location with less road congestion and easy access to Federal and KESAS highway. With this accessibility, we will be able to accelerate our parts delivery to MMM’s business partners as we constantly seek to improve customer’s aftersales experience by reducing cost and increasing our work efficiency,” said Tomoyuki Shinnishi, CEO of Mitsubishi Motors Malaysia.

In Malaysia, there are 52 authorised Mitsubishi Motors service outlets and 52 showrooms (out of which 46 are 3S Centres).

Visit www.mitsubishi-motors.com.my for more information on products and services from the brand.

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Perhaps you may not have realised it but many years after a model has ceased to be produced, genuine parts from the manufacturer are still available from its own service centres or authorised parts stockists. Some may be surplus stock but there will also be many parts that continue to be made after production of the model (or generation) had stopped. This ensures that subsequent owners of the model can still get genuine parts which are made to the same high quality standards as when the model was still in production.

It’s a sort of ‘unwritten’ industry practice that parts for a model will continue to be available from the manufacturer for at least 10 years after the end of production. For a market leader like Perodua, which has been producing cars since 1994 and put over 3.7 million vehicles on Malaysian roads, there’s a major responsibility to ensure that the parts remain available. This is especially so in Malaysia where there is still no ‘end-of-life’ policy so cars tend to be used for a long time.

Perodua old models
Since 1994, Perodua has put over 3.7 million vehicles on Malaysian roads and many are still running.

One-third of parts demand for old models
Currently, a third of the demand for Perodua parts is for past models such as the first-generation Myvi, Viva, Kelisa and even the Kancil. Besides making the parts at its own factory complex, Perodua has also assigned some parts to Industrial Quality Management (IQM) Sdn Bhd, its supplier since 2002. IQM currently supplies metal stamping, body assembly parts and brake tube components to Perodua. It also began making Viva parts when production of the model ended in 2014 and last year. it began making parts for the second-generation Myvi on a dedicated new line.

Today, Perodua announced that it is centralising parts production for its past models with the launch of a new press stamping machine at its facility within IQM’s factory located in Tanjung Malim, Perak. The move is one of Perodua’s many initiatives with its suppliers to help expand their business and capabilities, bringing them one step closer to becoming global automotive suppliers.

IQM Tg Malim, Perak
The IQM factory in Tanjung Malim, Perak

Freeing up space and simplifying operations
At the same time, this frees up much-needed space in Perodua’s complex, simplifies the entire operation, reduces lead time and cost, and makes it easier to monitor under one roof. Perodua also assists IQM in terms of skill transfer and training where past model parts production is concerned.

A RM7 million investment on the machine, including its transportation and installation, was made by Perodua entirely. The 1,600-metric tonne hydraulic press stamping machine will produce body parts such as bonnets, side outer panels, rear quarter panels, fenders, doors and roofs for past Perodua models. The dies required to make the past model parts have also been moved to IQM.

Perodua Viva replacement parts
The parts made by IQM for the Perodua Viva since 2014.
Perodua
Dies for body panels to be produced with the new press stamping machine which required an investment of RM7 million.

Supporting owners of past models
“Perodua’s decision to centralise past model parts production at IQM is 4-pronged. One, we want to continue supporting owners of our past models with quality, quick and affordable parts through our Body & Paint business, because as long as you own a Perodua vehicle – old or new – we will always be there for you,” said Perodua’s President & CEO, Dato’ Zainal Abidin Ahmad.

“Two, we are committed to empowering all 135 of our Malaysian suppliers, not just by buying from them but helping to develop them via skill and technology transfers. Three, it represents our commitment to the nation and its economy by helping to boost the competitiveness of the Malaysian automotive eco-system,” he added. “Finally, it represents our commitment to ourselves. To keep improving our quality and efficiency so that Perodua can be a better and leaner company moving forward,”

Perodua B&P
Old models undergoing repairs at a Body & Paint facility after an accident may require body parts which must be properly manufactured to ensure safety and strength.

With all its current models having over 90% of parts purchased locally, Perodua is naturally the biggest buyer of automotive components in the country. It has spent RM4.5 billion on parts so far this year out of a planned RM5.4 billion for the whole of 2019.

Visit www.perodua.com.my to locate a service centre where you can purchase Perodua Genuine Parts.

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No matter how much the carmakers and authorities warn consumers about the dangers of using imitation products and parts, there are still motorists who buy them knowingly or unknowingly. And these days, the imitation parts can be hard to differentiate from the original items so consumers may be misled even though they should be suspicious if the prices are too cheap.

In a move to address this situation in the market, Perodua recently took the initiative of providing enforcement officers from the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) with an understanding of the problem and how to identify imitation parts.

Comprehensive briefing for enforcement officers
Some 120 KPDNHEP officers attended an engagement session at Perodua’s Sungai Choh headquarters where, together with select service dealers and stockists, they received a comprehensive briefing. They were acquainted them with Perodua’s range of genuine products and parts, where they are sold, the logistics flow and shown real and fake items.

“Perodua is aware of the circulation of non-genuine products and parts that bear Perodua branding in the market, some of which are almost indistinguishable from the originals. These include lubricants, oil filters, shock absorbers and brake pads,” said Perodua Sales Sdn Bhd Managing Director, Dato’ Dr Zahari Husin.

Be sure to buy Perodua Genuine parts from authorised service centres or stockists.

Warranty is void if imitation parts used

ProGanti parts are an affordable alternative and you won’t lose your warranty using them.

“This is very alarming as they are critical items. Customers may be misled into buying and using such items, which have not been tested by Perodua, on their vehicles. Besides voiding warranties, this could greatly jeopardise the safety and running condition of their vehicles,” he warned.

“We hope that the engagement session was informative and insightful, and that it will help them in their duties to identify, pin-point and put the brakes on counterfeit Perodua products and parts in the market,” added Dato’ Dr Zahari. “We urge the public not to be lured by unscrupulous traders selling imitation Perodua items, and to only buy and use genuine products and parts from authorised Perodua stockists or any of our 179 authorised Perodua service centres nationwide.

“Genuine Perodua products and parts are fairly priced and most importantly, they give you total peace-of-mind. As an alternative, we have the ProGanti range of parts that’s easier on the wallet but still tested and approved by Perodua,” he said.

Visit www.perodua.com.my to locate authorised service centres where genuine Perodua and ProGanti parts are available.

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