Before the COVID-19 pandemic made lockdowns a part of life, some car companies were exploring retail activities online. They had their websites and as customers’ needs changed, they provided the necessary features and functions on their website to meet those needs. Then came the lockdowns and suddenly, customers could not visit showrooms so the online ‘business’ accelerated. ‘Contactless’ interactions were promoted, and unless absolutely necessary, the customer didn’t have to be at the showroom.
While a lot of information can be presented online, the one thing that is important to some customers is the test-drive. For this, they have to go to the showroom or as many companies are doing now, the salesman can bring the vehicle over. In spite of advanced simulators available that even make e-racing possible, it seems that this is something that the auto industry has still to provide.
First in the world
Nevertheless, Abarth (part of the new Stellantis Group) Abarth is first car brand in the world to offer ‘test drives’ from the comfort and safety of a customer’s home. They can experience a ‘test drive’ in the new limited edition Abarth 595 Scorpioneoro, a limited edition model with only 2,000 units available globally.
The ‘test drive’ takes place on iconic driving roads in North Wales, hand-picked by Abarthisti as some of the best driving roads in the UK. While nothing will ever compare with test driving an actual car in the real world, the VR ‘test drive’ provides customers and their families a fully immersive alternative.
Undergoing trial in England first
For now, the virtual test-drive is undergoing a trial with one Abarth dealership in the UK offering it. If this initial trial, which began yesterday, proves successful, it could be rolled out to additional retailers across the UK.
During the trial period, an expert representative from the dealership will deliver an Abarth crate to the front door of the customer (taking into account all government SOPs). Inside the crate will be the VR headset pre-loaded with the ‘test drive’ footage and a pair of Bose headphones to ensure customers can fully experience the famous growl of the Abarth exhaust. Abarth-branded items including a Bluetooth speaker and baseball cap are also included. In addition, a brochure is included providing drivers with all the detail they need on the Abarth range.
Guidance by automotive influencer
When ‘drivers’ put the headset on they will be greeted by Abarth owner and automotive influencer, Stef Villaverde, who will host and guide them on the virtual experience. Stef will give customers all of the key product information about the car before taking them on a ‘drive’ of some of the UK’s best driving roads.
The VR experience transports viewers ‘seated’ in the Italian sportscar instantly to the sweeping bends of the Great Orme, the lakeside vista of Llyn Ogwen and off-road adventures on Black Rock Sands. These roads were specifically chosen by Abarth’s online community of owners who deemed North Wales to be the prime spot to experience an Abarth.
With the uncertainty around ever-changing restrictions, business closures and other measures to combat the pandemic, the VR experience gives customers the opportunity to enjoy the thrill of ‘driving‘ an Abarth while staying in the comfort and safety of their home.
The suspense is over: Lewis Hamilton has signed on the dotted line (too bad, George) to establish a new contract with the Mercedes-AMG Petronas F1 Team which he has been with since 2013. Until now, there has been a lot of speculation about Hamilton’s demands and salary expectations (though none were officially confirmed to the media) and the possibility the George Russell – who drove in his place for one race last year – might instead be taken on.
Greater diversity and inclusion
A significant part of the new agreement builds upon the joint commitment to greater diversity and inclusion in motorsport that was made last year by Lewis Hamilton and Mercedes-AMG. This will take the form of a joint charitable foundation, which will have the mission of supporting greater diversity and inclusion in all its forms in motorsport.
The Hamilton and Wolff duo will continue to be together.
“We’re very happy to keep the most successful F1 driver of the current era in the most successful F1 team of the current era,” said Markus Schafer, Member of the Board of Management of Daimler AG, responsible for Group Research, Mercedes-Benz Cars Chief Operating Officer and Non-Executive Chairman of the Mercedes-AMG Petronas F1 Team.
“Lewis is not only an incredibly talented driver; he also works very hard for his achievements and is extremely hungry. He shares his passion for performance with the entire team which is why this collaboration has become so successful. But Lewis is also a warm-hearted personality who cares deeply about the world around him and wants to make an impact. As a company, we share this sense of responsibility and are proud to launch a new, joint foundation to improve diversity in Formula One. Opening the series to under-represented groups will be important for the sport’s development in the future and we’re determined to make an impact,” he said.
Strategic steps for future success
Retaining Hamilton in the team is an important step for the future success of the Mercedes works team. Over the past 12 months, Daimler AG and the Mercedes-AMG Petronas F1 Team have established several key strategic pillars to lay the foundations for a bright future of the Mercedes F1 works team.
In March 2020, the company announced a new sustainability strategy for its motorsport teams, which includes cutting the CO2 emissions of the F1 team in half by 2022 compared to 2018 and achieving a net-zero carbon footprint from 2020 onwards. The sustainability commitment of the team goes far beyond that of the wider sport and aligns closely with Daimler’s global sustainability strategy.
In June, the team made a commitment to greater diversity and inclusion within the team and the wider sport which was symbolised by the new black base livery of the car. Later in the year, the team launched its programme ‘Accelerate 25’ to honour the commitment. Part of the programme is the objective to continuously raise the standards of entry and initially aim for at least 25% of all new starters at the Mercedes-AMG Petronas F1 Team to come from under-represented groups until the end of 2025.
In October, Daimler AG announced a new strategic course which includes a closer partnership between the Mercedes F1 works team and the Mercedes-AMG performance division. Both partners are united in their pursuit of performance and cutting-edge technology.
At the end of 2020, INEOS became a new shareholder in the Mercedes-AMG Petronas F1 Team, which is now owned in three equal parts by Daimler AG, INEOS and Toto Wolff. At the same time, Wolff’s contract as Team Principal & CEO of the team was extended and ensures his continued leadership in the coming years.
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In addition to these important strategic pillars, the new financial regulations in Formula 1, which came into effect on 1 January 2021, will help F1 teams on their journey to financial sustainability in the years ahead.
“2020 was a difficult year for Formula One, but we’re happy the series was able to go racing and produce a thrilling season,” said Schafer. “Despite the challenges, we were able to not only defend both championship titles, but also make some very important strategic decisions for the future of the team. We’ve aligned the sustainability efforts of our Mercedes works team more closely with those of Daimler, both in terms of the environmental impact and the economic value for the team’s shareholders.”
Technology transfer to the next level
He added that the closer collaboration between the F1 team and AMG ‘creates an exciting opportunity for both sides and will take our technology transfer from the racetrack to the road to the next level’. “Formula One is one of our biggest global marketing platforms and the steps we’ve taken in the last 12 months ensure that this platform stays highly attractive for us. We remain strongly committed to the sport and are excited to see what the future holds for our Mercedes works team,” he said.
Hamilton will again be partnered by Valtteri Bottas (above) who announced that he will continue racing together with the team until at least the end of 2021. It will be his fifth year with the Mercedes-AMG Petronas F1 Team after joining in 2017.
For many years now, one of the industry events early in years has been a presentation of the previous year’s performance by Mercedes-Benz Malaysia (MBM), and a look at its plans for the new year. Unfortunately, with the MCO and concerns about the COVID-19 pandemic, physical interactions have to be minimized and events with big groups are out of the question.
Virtual showroom
So this year, the presentation is done in the good old fashioned way with a press release. The New Normal ties in with the launch of its e-commerce platform, a virtual showroom that allows customers to find out more about the German models online.
Mercedes-Benz Malaysia Virtual Showroom
“2020 placed great demands on us as a society. Despite the challenges, the situation also presented us with an opportunity to be more resilient and agile in this new technology-led environment. While the safety and of our customers is our top priority, we explore innovative ways to optimize our offerings. The virtual showroom is an example of our pursuit in continuous digitalisation effort to bring the best experiences for our customers,” said Dr Claus Weidner, President & CEO of Mercedes-Benz Malaysia.
In 2020, MBM hosted its first ever digital premiere car launch for the latest Mercedes-AMG compact cars, with the digital debut of the new all-new A 35 hatchback, A 45 S and the CLA 45 S. The company also hosted its first regional digital premiere of the all-new GLB SUV for Malaysia, Singapore and Indonesia, and ended the year ended with a virtual launch of the new GLA.
Detailed quality checks at the assembly plant in Pekan, Pahang.
The models assembled locally at the plant in Pekan, Pahang, still stand at 13 variants from 5 model lines – C-Class, E-Class and S-Class sedans; GLC and GLC Coupe SUVs; as well as two Mercedes-AMG models, the C 43 and the GLC 43 Coupe. That’s certainly a big difference from the period before MBM started when only 3 model lines (and a couple of variants) were assembled – the C-Class, E-Class and S-Class. The company plans to localise additional models in the compact car and SUV segment this year.
In the continuous pursuit of the Best Customer Experience initiative, Mercedes-Benz dealerships in Alor Setar and Kuala Lumpur were also renovated substantially to be more luxurious. This saw the transformation of a conventional point of sale to a place where a customer can encounter the brand family and immerse themselves in a fascinating car purchasing and ownership journey. The first of its kind Mercedes-Benz Lifestyle Accessories and Collection Boutique was also opened.
One-stop solution for customers
Despite the pandemic, customer services providing customers with aftersales support saw a throughput of over 140,000 vehicles in 2020. This achievement was supported by various service differentiation offerings including extended service and warranty grace period (due to the MCO), Express Service, Drop&Go, Door-to-Door, Star Mobile, and the implementation of Mercedes-Benz Star Shield Programme, covering comprehensive safety measures across dealerships nationwide.
Star Mobile is managed by Cycle & Carriage in the northern region.
Other highlights included the introduction of the Mercedes-Benz Original Tyre Programme, which makes its dealer network now a one-stop service provider, and the implementation of various contactless convenience include the Mercedes me Adapter and Online Appointment booking.
Mercedes-Benz Financial services
Mercedes-Benz Services Malaysia (MBSM) has been offering a range of comprehensive and innovative finance and insurance solutions for Mercedes-Benz customers when purchasing their new vehicles. MBSM financed more than 50% of all Mercedes-Benz vehicles sold by authorised dealers in Malaysia and reached a concrete servicing portfolio of RM2.27 billion. It also recorded new contracts worth over RM717 million and introduced new financing and insurance solutions, the Star Protect and Star Protect Plus programme.
Going forward
MBM has a comprehensive strategy to further enhance its position in current luxury and performance segment. Amidst a challenging year ahead, the company intends to build a strong momentum by offering desirable and innovative products by leveraging its strength as a luxury brand and grow local economic value.
“We are cautiously optimistic about the auto industry’s recovery in 2021. Geared with our comprehensive customer-centric strategy, we are confident it will be an interesting journey as we innovate new ways we communicate and conduct businesses in the future together with our partners,” said Dr. Weidner.
“We want to assure our new and existing customers that we are with them throughout their ownership. We have accelerated most of our efforts to combine physical and digital touchpoints for a seamless customer journey. From dealerships with luxurious brand presence to digital launches and virtual showroom– it is all now easily accessible from anywhere. This new and improved presence is meant to simplify processes and enhance our brand experience by leveraging data and technology in this era,” added Michael Jopp, Vice-President of Sales & Marketing.
For the past 110 years, a woman has been leading Rolls-Royce cars, always slicing through the air in full view of the occupants and others on the road. The woman is referred to as the ‘Spirit of Ecstasy’ and has been a defining feature of the Rolls-Royce brand. It is one of the most famous, iconic and desirable symbols of luxury in the world. Along with the black and silver ‘Double R’ logo and Pantheon Grille, the ‘Spirit of Ecstasy’ (also known as the ‘Flying Lady’) mascot is a signifier of Rolls-Royce Motor Cars and its Brand.
The Spirit of Ecstasy was officially registered as intellectual property in February 1911. Its design was based on a bronze statuette, called the ‘Whisper’, created for a motoring pioneer and early Rolls-Royce enthusiast Lord Montagu of Beaulieu in England.
Eleanor Thornton – the inspiration
The figurine was actually inspired by a woman, Eleanor Thornton, who was at the core of the ‘motoring-set’ which emerged from the Piccadilly-based ‘Automobile Club of Great Britain’ as the 20th century was born. Prominent in this group were Charles Rolls, aristocratic showman and partner of self-made engineering genius Henry Royce. Also among them was Charles Robinson Sykes, a bohemian artist and sculptor. His friendship with the maverick group led to his creating the ‘Spirit of Ecstasy’ – an emblem that has stood as an internationally-recognised symbol of perfection ever since.
Although born in Victorian times, Eleanor Thornton would have personified modernity – whatever age she graced. From a modest background, her intellect and charisma saw her rise through an elitist society. She became the central presence of an unsung, yet immeasurably influential coterie of mavericks; one that helped to shape the future of motoring.
Eleanor’s voice led them, and she was a mercurial force that galvanised the group, allowing them to stand together at the forefront of a new frontier of motor travel. Instead of gathering in stale members’ clubs and silent reading rooms, they much preferred the roar of the racetrack and the camaraderie of the workshop, feeding their liberal attitudes with the excitement of speed and competition.
They mastered the art of motoring at pace, over distances never believed possible and encased them in the comfort of luxury, setting the template for every sophisticated thrill seeker since. It was a feeling they would define as ‘ecstasy’…
And so Sykes, when commissioned by his patron , Lord Montagu of Beaulieu, to create a statuette, he used Eleanor as his inspiration. Her presence was crystallised in the form of an ornamental figurine. Challenging the social conventions of the time, her appearance became instantly iconic as they encapsulated the pursuit of personal liberty, and freedom from conformity.
Evolution of the figurine
The first Spirit of Ecstasy figurines were a statuesque height of about 18 cm. Today, the height is a more petite 9.5 cm, their dimensions influenced by safety considerations. Previously flexible at the base, she is now kept safely out of sight within a special housing in the bonnet until the engine starts. She then rises smoothly and gracefully by a precisely engineered mechanism known, not surprisingly, as ‘the rise’.
The company’s foundational connection between the automotive and art worlds continues today with MUSE, The Rolls-Royce Art Programme, a lead protagonist in the world of moving-image art.
“As an emblem, the Spirit of Ecstasy represents far more than just our company and our products. To our customers, she is a potent symbol, instantly and universally recognised – of success, endeavour, achievement and standing. In her beauty, simplicity, elegance and rarity, she encapsulates everything our customers seek – and find – in their Rolls-Royce motorcar,” notes Torsten Muller-Otvos, CEO of Rolls-Royce Motor Cars.
“Within our company, the Spirit of Ecstasy fosters pride and esprit de corps, uniting and empowering the Rolls-Royce family right across the world. She reminds us of our inheritance and principles, and inspiring greatness in all of us. Every car we build must be worthy of bearing her, because it is she that makes every Rolls-Royce, and our company, unique and complete,” he added.
The Chinese New Year festive season is coming up and if you want to celebrate it with a brand new vehicle, Sime Darby Auto ConneXion (SDAC) has some deals for you which could save up to RM6,000. The savings are for the Ford Ranger Raptor and Ranger Wildtrak models (selected year) and while stocks are available.
The Ranger Raptor is still the only pick-up truck of its kind in Malaysia and even the region. Built with the expertise and assistance of Ford Performance, it sets a new benchmark as the first and only factory-built performance pick-up truck in the country.
While there are some models which have bodykits installed to give them a more macho look but the performance is not increased, the Ranger Raptor has enhanced performance to go with its much more aggressive appearance. In particular, the Fox Racing Shox that are installed as standard provide higher damping forces at full bounce and rebound to enable better off-road capabilities – and the ability to handle jumps.
The Ranger Raptor comes with a powerful 2-litre Bi-Turbo diesel engine which produces 213 ps/500 Nm which goes to the rear or all four wheels through a 10-speed automatic transmission. An intelligent Terrain Management System offers 6 modes, including a Baja Mode, which customise the engine and performance characteristics to the terrain for optimum grip and stability.
Not everyone may need the extreme capabilities of the Ranger Raptor but still want off-road capability without giving up on refinement. This is where the Ranger WildTrak will prove to be an ideal choice. Besides a generous list of standard equipment and features, it also has an array of smart safety technologies.
Some of the first-in-class features are Autonomous Emergency Braking with Vehicle and Pedestrian Detection, Forward Collision Warning, and Lane Departure Warning. There’s also Semi-Automatic Parallel Parking which will certainly be welcome by those who have been deterred by the vehicle’s size and length. At the touch of a button, the computer slots the Ranger Wildtrak in and all the driver has to do is manage the power.
Its 2-litre Bi-turbo diesel engine is also mated to a 10-speed automatic gearbox and provides drivers with 180 ps of power and 420 Nm of torque. This gives the WildTrak the ability to carry a maximum payload of 1000 kgs and a towing capacity of 3500 kgs.
To locate a Ford showroom in Malaysia, visit www.sdacford.com.my . In view of the current pandemic requiring observation of SOPs, customers are encouraged to make an appointment first. They can do so using WhatsApp to connect to the Ford Sales Line at +60 19-204 1200.
Malaysia was to have a ‘flying car’ last year but it seems to be delayed for reasons unknown and even the minister who was most supportive is no longer in the same position. Meanwhile, elsewhere in the world, other companies have been carrying out trials – without all the secrecy that surrounded the Malaysian project – of flying cars and there is even a flying electric racing car.
Alauda is the company that has developed the world’s first flying electric racing car which will be used in remotely piloted Airspeeder competitions in 2021. Remote pilots will fly electronically governed courses at speeds of up to 120 km/h in the event that will stand as a technical test-bed and feeder series to a manned racing series in 2022.
Competition drives progress faster
“The unveiling of the world’s first full-sized electric flying racing car is a landmark moment in the dawn of a new mobility revolution. It is competition that drives progress and our racing series is hastening the arrival of technology that will transform clean-air passenger transport, logistics and even advanced air mobility for medical applications. The world’s first electric flying car races will take place this year and will be the most exciting and progressive motorsport on the planet,” said Matthew Pearson, Founder of Airspeeder and Alauda Aeronautics.
The fully functioning electric flying racing car, in its third development version, is a full-sized remotely-operated electric vertical take-off and landing vehicle (eVTOL). It represents the realisation of more than 3 years development work to create a sport that will accelerate a new clean-air aerial mobility revolution.
Production underway for teams
A full grid of Mk3 electric flying race-craft is currently being manufactured at Airspeeder and Alauda’s technical HQ in Australia. More than 10 identical racing vehicles will be produced and supplied to teams in 2021. The craft is being developed and manufactured by a team drawn from leading names in aerospace, automotive and motorsport technology such as McLaren, Babcock Aviation, Boeing, Jaguar Land Rover, Rolls-Royce and Brabham.
The initial Mk3 races will provide vital information on vehicle dynamics, performance, safety and powertrain technology that will inform the final development of the manned Mk4 Airspeeder vehicle. Racing will play a vital role in hastening the arrival of eVTOL technologies which promise to revolutionise urban passenger mobility, logistics and even remote medical transport.
Safe environment with key innovations
Both the remotely piloted Mk3 programme and manned Airspeeder Mk4 flying cars will provide a safe environment from where key innovations around safety, noise and batteries can be refined and fed into the wider development of the growing industry.
The craft, which will be operated by an expert remote operator from the ground, features a suite of technologies and engineering elements never before seen on an eVTOL craft. These innovations will be validated in this key unmanned proving phase and include LiDAR and Radar collision avoidance systems that create a ‘virtual forcefield’ around the craft to ensure close but ultimately safe racing.
The Mk3 features a carbonfibre frame and fuselage chosen for its strength, stiffness and lightweight properties, which ensures manoeuvrability, performance and efficiency. The carbonfibre frame and fuselage adds a vital mechanical layer of safety, which will be further enhanced by a full carbonfibre monocoque body to be introduced on the Mk4 vehicle.
The powertrain has a 96 kW electric motor with a thrust to weight ratio above 2.0, on a craft that weighs just 100 kgs unmanned. This means that the Mk3 speeders will be able fly at speeds in excess of 120 km/h.
The design and dynamics
The Mk3 speeders are laid-out in an ‘octocopter X formation’. This provides significant advantages to pilots in terms of manoeuvrability and stability. When racing, the pilot will be able to make the same sharp hairpin style turns as a Formula 1 car but with the added third dimension of being able to move vertically. The octocopter configuration also adds an important measure of vehicle redundancy and will ensure the craft can safely land and remain in control should a rotor or battery system fail.
Airspeeder races will include rapid pit stops and to facilitate this, Alauda’s engineers have developed an innovative ‘slide and lock’ system for the rapid removal and replacement of batteries when on the ground. There will be different battery packs to suit racing conditions. For example, a lighter battery pack can be selected to deliver more manoeuvrability at the cost of raw power or endurance.
Airspeeder aims to be a truly global sport. While its technical HQ is in Australia, commercial operations are run from England. 2021 will see growth in its existing presence in the UK through the creation of a full-time engineering base, a strategic decision made on the basis of Britain’s standing as a technical and engineering powerhouse in motor-racing and advanced aerospace development.
“Airspeeder is built on the philosophy that nothing accelerates technical progress like sporting competition. The next generation sport plays the same role the pioneers of Formula 1 did nearly a century ago in driving technical development and building public acceptance for a new mobility revolution. The eVTOL sector is primed to transform urban aerial transport, global logistics and even remote medical transport with a clean-air, zero emissions aerial transport solution,” said Alauda’s founder.
With the COVID-19 pandemic very much affecting our lives and the need to protect ourselves, much is being done by the corporate and commercial sector to help in various ways. In the local auto industry, some carmakers have used their production facilities to make Personal Protective Equipment (PPE) for frontliners, which is much needed as it is one-time use equipment.
Volvo Car Malaysia (VCM) has also been doing its part and last year, it rewarded Malaysians who pledged to practice social distancing, an important measure to reduce transmission of the virus. This year, it has collaborated with NanoTextile Sdn Bhd to produce an anti-microbial reusable facemask. The project was initiated to help single mothers while engaging with trained vocational graduates from GIATMARA and local artisans to help them earn a sustainable living during the pandemic.
A sustainability program
Commenting on the collaboration, Nalin Jain, MD of Volvo Car Malaysia, SAID: “The project helps the environment as many surgical masks are being disposed every day that leads to environmental pollution. With sustainability programs like this, we ensure the fabrics are always re-energized by using advanced technology.”
A study was conducted when designing the facemasks, providing insights into the concerns people have when wearing a surgical facemask. These are cost, waste, allergic reaction and sizing. NanoTextile has addressed these concerns with its facemasks which are made of 100% cotton, are soft and washable, and water-repellent. They have self-cleaning features on the inside and outside layer, allowing use after up to 100 gentle washes.
99.9% anti-bacterial efficacy
NanoTextile’s award-winning technology has anti-bacterial efficacy of more than 99.9% that is laboratory-tested. This prevents contamination of the fabric by viruses and bacteria and decreases the penetration of droplets in contact. The facemask has 5 more layers of protection using a PM 2.5 filter, tested to be 90% effective in viral particle filtration.
Consumers can purchase the facemask from all Volvo dealerships throughout Malaysia. They are available in Medium and Large sizes and with a choice of 3 colours as well as a Batik Tekap pattern. “Batik has always been a pride of our country and we at Volvo Car Malaysia do recognize and embrace local arts and culture, and sustaining our Batik heritage,” said Mr. Nalin.
Porsche to assemble in Malaysia? That’s the current topic among enthusiasts following a report in The Edge Weekly. The business website mentions that its source has said the investment has been approved by Malaysian authorities and that the assembly will be done at the Inokom factory in Kedah.
It would be quite an unusual development for the German sportscar maker as it has never built its cars outside Germany. It has two factories – the original one at Zuffenhausen and the 19-year old one in Leipzig. In its 2019 financial year, total production from the two factories was almost 275,000 vehicles.
Porsche has come a long way from the time it began making sportscars in the 1950s. Today, it has two factories supplying to the whole world – the original one from the 1950s in Zuffenhausen (below) and a second one in Leipzig (bottom), both in Germany.Porsche builds its vehicles for the whole world at just two facrories – the original one from rhe 1950s in Zuffenhausen and a second one in Leipzig (below), both in Germany.
Porsche being a strong brand, demand for its products has always been good although the coronavirus pandemic which impacted the auto industry did result in a 12% decline in deliveries last year. In the first half of 2020, Porsche sold 55,550 vehicles to customers in the Asia-Pacific, Africa and the Middle East regions, with China’s intake of 39,603 units making it the biggest single market worldwide for the carmaker.
So is it time for Porsche to establish a production hub in the Asia-Pacific region? Bear in mind that the 100,000+ volume is made up of 5 model lines with the specialized all-electric Taycan being the sixth. Obviously, assembling outside Germany would not involve all the models so it would be one or two, with the Cayenne being the most popular so it could be a good candidate.
Manufacturers invest in overseas production facilities in places where they can get good incentives by government to do so. They obviously require a good infrastructure as well. At one time, the potential domestic market volume was important since they would assemble in another country and primarily want to sell there, with exports being secondary. However, with the formation of the ASEAN Free Trade Area (AFTA) as a single trading bloc and duty-free exchange of goods, it is no longer just one country to look at but the potential of regional volume, which can be quite big.
Local assembly of vehicles in Malaysia began in 1967.
Up till the 1980s, Malaysia was an excellent place for any carmaker to have a production base. It had a good infrastructure, a well educated workforce which was also familiar with the English language, a stable government and a growing economy. It had begun local assembly activities in 1967 so a broad range of locally-made components was available. Manufacturers who chose to assemble locally had their vehicles taxed at lower rates so they could be priced attractively.
However, things changed after the mid-1980s when Malaysia decided to have its own National Car, with the government being an investor in the project. Naturally, it had protection so it could compete against established brands and with the protection, the playing field was no longer level like before. The market came to be dominated by one brand while others had to fight in a far smaller slice of the market.
In the interests of ‘free trade’ and also as a member of the World Trade Organisation, the government never stopped anyone else from selling in Malaysia. They were welcome to import their vehicles in CBU (completely built-up) form and pay much higher taxes, or assemble them locally and have lower taxes but still more than what Proton had to pay.
While having a national car, the government nevertheless wanted to also make Malaysia a production hub in ASEAN. However, it basically wanted carmakers to build their factories in Malaysia but export almost all the production; the domestic market was to be left alone. While this may be fine in theory, as mentioned earlier, manufacturers prefer to look at the domestic market first. If they are to export to another country, why can’t they do it from their own factories in Japan or Europe? The shipping costs would be the same anyway and they would probably have lower production costs as well as the vehicles would be made in high-volume factories with better economies of scale.
The AFTA agreement helped but Malaysia has so far not benefitted much. When the manufacturers first learnt of the single market being formed, and the ability to export around the region without import tax, they were attracted. The market size estimated when AFTA was signed in the early 1990s was about 550 million consumers, with many steadily moving upward economically, and a potential GDP of US$750 billion.
So they looked at making investments and besides incentives, they also looked at domestic market potential. Malaysia was seen as ‘protected’ so it was not seriously considered, not that the government really cared since Proton was selling everything it could make anyway. So Thailand, where the playing field was seen as level, got big chunks of investment as Ford and GM built brand new factories to make their products for the region. Indonesia too saw investments with the aim of expanding existing factories to produce more and export.
Ford did consider Malaysia and had a plan to make the Escape SUV in Malaysia for the region. The plans were confirmed but then Malaysia decided that it did not want to open up as planned under the AFTA agreement because it said that its auto industry had been battered by the Asian financial crisis. It needed some extra years to recover, so the market had to stay closed. A frustrated Ford, realizing that it would not be practical to use Malaysia, tore up its plans and put its money into the Philippines where it had a factory.
Only Volvo seems to have chosen Malaysia as a hub of sorts but that is more a historical thing. Its factory here was the first to open when Malaysia began calling for local assembly and although it had production in Thailand, that was closed down and everything concentrated in this country for the region from 2012.
For the other carmakers, Malaysia was still and attractive market because it was the largest passenger car market in ASEAN. Thailand was a pick-up truck market and in Indonesia, the biggest demand was for MPVs. So in spite of the difficult environment, many carmakers continued to operate in Malaysia, make the necessary investments periodically to upgrade their plants and kept refreshing their model lines.
Porsche has been officially in Malaysia for a long time, with Sime Darby Auto Performance representing the brand since 2010.
But the much desired objective of the government – to be a regional production hub – remained elusive. There have been a few National Auto Policies (NAP), each one stating that aim, and offering various types of incentives without much detail. The general way that the Malaysian government’s Ministry of International Trade & Industry has liked to operate is with ‘customised’ incentives, perhaps believing that the approach would be more appreciated by investors.
However, many in the industry have expressed a dislike for the approach, preferring the details to be open for all to know and work with. Transparency is important for these businessmen, and as one veteran industry executive said, “How can I know that my competitor might have received a better incentive but actually invested less?”. So the has remained an indifference and even with the latest NAP announced a year ago, the lack of transparency and detail continued. Many people were disappointed that only an outline was provided and could not even begin to start working out plans to propose to their head office. Anyway, since then, the government has changed so it could be that the NAP will see a revised form, depending on the MITI minister.
For many years. Daihatsu has been taking the Myvi made in Malaysia and selling it as a Daihatsu Sirion in Indonesia. Mazda has also been exporting the CX-5 assembled in Malaysia (below) to Thailand.
Over the past decade, some companies have tried to export from Malaysia with limited success. Perhaps only Volvo and Mazda (with the CX-5) have been doing well with exports but Toyota started and stopped exporting its Malaysian-made Hiace to Thailand. Proton and Perodua export, of course, and of note is the fact that the Myvi made in Malaysia is taken by Daihatsu for sale in Indonesia as a Sirion under its own brand. That says a lot about Perodua’s quality as a Japanese carmaker would not simply use a product made by someone else.
Porsche and Sime Darby
The report by The Edge Weekly mentions that Porsche will use the Inokom plant in Kedah, which is not surprising. The plant, opened in the late 1990s, is owned by Sime Darby and a unit of the company is also the importer and distributor of the German sportscars. It would make things a lot easier for the same parties to also work together on an assembly project.
If Porsche is indeed going to do it, then it will not just be an assembly program to set up. The carmaker has not done completely knocked-down (CKD) activities before so it will have to set up a new department just for it. Perhaps, being in the Volkswagen Group, it will be able to get assistance from its colleagues in Wolfsburg as there is local assembly of some Volkswagen models being done in Pahang.
The Inokom factory in Kedah which assembles vehicles from the BMW, Hyundai, MINI and Mazda brands.
It is not just a matter of picking a model and putting it into a box in disassembled form for assembly in another country. The model has also to be engineered for local assembly, taking into account the level of automation and capabilities of the workforce. This is often the case with picking models for overseas assembly. Volvo had to first invest in laser welding equipment before it could consider assembling the XC60 in Malaysia.
The two Porsche factories in Germany are very advanced with manufacturing processes that ensure high quality. It is unlikely that all the manufacturing processes at Inokom will be identically advanced, so some modification may be needed, and that means an engineering program to develop a ‘Malaysian CKD model’.
It is possible that the ‘SKD’ (semi knocked down) approach will be taken although this approach was stopped by the government in mid-2019. With SKD, bodyshells can be imported already welded together. While the government no longer allows SKD, one never knows with a ‘customized incentive’ and also, the government of today is not the same one that formulated the 2020 NAP.
The Cayenne SUV would be a good candidate for assembly as it is popular throughout the region.
Righthand drive or lefthand drive? This is also another issue, especially if the volume is not going to be very big. What some carmakers have considered – Geely and Great Wall Motors being among them – is that a production hub in ASEAN could be dedicated to righthand drive (RHD) versions which they do not make in their own country. This is more applicable to the Chinese carmakers though as the other global players have long coped with making cars with the steering wheel on either side. So Malaysia could be designated to make RHD models for most of the ASEAN markets and when volumes get higher, then they can also consider LHD.
As for quality, there is nothing inferior about Malaysian assembled vehicles today. The manufacturers have many processes that ensure the quality standards are very high, even if they might not be exactly similar to those of factories in Japan or Germany.
The only thing is consumer perception even though one can say that in this era of globalization, people don’t really care as long as the quality is not poorer. Many years ago, when Proton was assembling the Lotus Elise and tried to export it to Japan, the customers there indicated that if they wanted to buy a Lotus, it had to be made in England. Likewise, when Mazda and Toyota wanted to source some of its models from Thailand for its ASEAN markets, customers in Singapore did not want them and wanted to have cars from the Japanese factories.
Finally, the price – which is often the first thing Malaysians think of when they hear that a model will be assembled locally. For a long time, they have been conditioned to expect that a model that is assembled in Malaysia will be cheaper and that is because there is a lower tax rate and in more recent times, the government also rewards those who make investments with subsidies that can offset production costs to allow lower retail prices. So yes, a locally-assembled Porsche could be cheaper though probably not by a huge amount.
Audi Sport has unveiled the second generation of its successful RS 3 LMS model, with a season of testing ahead before going into production and being ready for customers at the end of 2021. The second generation of the entry-level touring car has been improved in many areas to offer more benefit to customers.
The RS 3 LMS, which has been available since the end of 2016, has made 3,105 appearances in a total of 1,051 races around the world to date. On average, there were almost three RS 3 LMS cars on the grid in each race. This is impressive considering that Audi has not been directly involved, with the exception of a 2-year program in the FIA WTCR in 2018 and 2019.
In the four years since its launch, the racing car has collected a total of 764 podium places in Africa, North and South America, Asia, Australia and Europe, including 279 overall wins. This is a win rate of 26.5% in an extremely tough competition in which TCR race cars from up to 14 manufacturers compete. It was considered the global ‘TCR Model of the Year’ in 2018.
More racing character
The second generation presents itself with new developments in all areas that serve two goals: To make the near-production entry-level even better and to optimize customer benefits in all areas. Despite this, the model remains inexpensive to buy and maintain, offers an even higher level of safety and, with up to 340 bhp available.
Visually, the second generation differs significantly from its predecessor. At 1.95 metres, it still meets the maximum width defined in the regulations, but the body extensions are integrated into the contours in a more harmonious and aerodynamically favorable way than before. The front apron incorporates the air intakes as part of a significantly revised cooling concept for the engine and brakes. The rear wing, suspended from the rear for the first time, completes the optimized aerodynamics of the TCR racing car.
New engine generation
For the new RS 3 LMS, the fourth generation of the 2-litre 4-cylinder EA888 engine replaces the predecessor series. The engine block and cylinder head, crank drive, valve train, intake manifold, fuel injection and the new turbocharger remain absolutely standard in the racing car. Only the valve cover breather with its oil separator differs from the standard component, as does the exhaust system. Also, the standard engine management system from Magneti Marelli specified by the regulations is new.
The adoption of the engine from volume production has proved highly successful in TCR racing. In many cases, Audi’s power units already achieved tens of thousands of racing kilometres in the previous generation in the hands of the customers. Together with the standardized hardware, this guarantees transparency and equal opportunities for all manufacturers.
Benchmarks in safety
No other TCR touring car offers as many optional safety components as are on board as standard in the RS 3 LMS. The roll-cage consists of steel tubes that add up to just under 25.8 metres in length. A 6-point safety belt serves as restraint system for the driver.
The Audi Sport Protection Seat, unique in the TCR class, with its robust construction and elaborate upholstery offers maximum accident safety. For better occupant protection in the event of a side impact, it is moved closer toward the centre of the car. Optionally available seat-wrapping safety nets on the right and left provide additional protection for the driver.
The standard roof hatch facilitates recovery of the driver after accidents. It allows the helmet to be gently removed upward and, if necessary, a rescue corset (Kendrick Extrication Device) to be inserted vertically from above to stabilize the driver’s spine.
For the first time, the rear window in every car is made of polycarbonate ex factory at no extra charge. This material reduces weight and is extremely impact-resistant. The safety fuel tank complies with FIA FT3 regulations and has a capacity of 100 litres. A fire extinguishing system completes the safety equipment.
Improved ergonomics in the cockpit
The cockpit is even more driver-oriented and easier to operate. The steering wheel features a control panel specified for TCR purposes. In the centre console, 12 functions are ergonomically optimized and logically grouped in a clearly arranged keypad. The ignition and various light functions can be activated there, as can the cockpit fan or the optional windshield heating. The brake balance and, if necessary, the fire extinguishing function are also within easy reach below the centre console.
Adaptable chassis
The McPherson design on the front axle makes it possible to implement changes to the kinematics faster than ever before. Whereas the previous bolting system always required a chassis measurement for changes, spacer components known as shims can now be inserted in the control arm and track rod in a matter of minutes. The track rods are standard on the 4-link rear axle to achieve bump steer effects. They support the agility of the car when turning in.
“Our new Audi RS 3 LMS thus takes on a great and responsible legacy,” says Chris Reinke, Head of Audi Sport customer racing. “The focus of our development goals for our latest model was on the customers. Whether it’s about running times or setup options, safety or cockpit ergonomics: we want to offer the teams a car that’s even more of a racing car than before, that has many practical advantages in everyday use and that can be operated economically thanks to long running times.”
