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Volkswagen Planning Pekan, Malaysia, Manufacturing Plant

Volkswagen has announced a $318 million investment in Malaysia to build its new Passat and Jetta models by late 2011. The German auto maker will partner with Malaysian car company DRB-Hicom Berhad.

"Developing the market potential of the region is of major significance for the VW Group's long-term growth strategy," said VW Board Member Christian Klingler.

DRB will fund 70 percent of the investment, while VW will build production infrastructure and finance training and quality controls at an existing DRB facility in Pekan, Malaysia.

DRB will produce about 3,000 VW vehicles each year and increase production after 2012.

VW is planning sales and production growth in Southeast Asia from 14,000 vehicles last year to up to 50,000 in the coming years.

The VW vehicles produced in Malaysia will be available for purchase by the fourth quarter of 2011. They are slated for the Malaysia auto market and could be exported to other Southeast Asian countries.

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