Volkswagen AG Is Considering Expanding Production in Malaysia

Volkswagen AG is thinking about expanding production in Malaysia and has sent senior executives, which include management board members, to evaluate Proton Holdings Bhd’s operations for a potential relationship, a person acquainted with the matter said.

Europe’s largest auto maker is thinking of producing vehicles at Proton factories after its partner DRB-Hicom Bhd. DRB decided last month to buy 43 percent of Proton, the person said, decreasing to be identified because the talks are private.

Volkswagen has flirted with a Proton partnership in the past. The German carmaker called off cooperation talks with Proton in June 2010. The two companies also failed to reach an agreement in November 2007 after 12 months of negotiations. The partnership with DRB-Hicom was agreed in December 2010.

The Proton deal gives DRB control of two Malaysian car plants with the capacity to make a combined 350,000 vehicles per year. Proton’s vehicles are driven by taxi drivers across Malaysia and are among the cheapest cars and auto parts sold in the country. The company had two annualnet losses over the past five years.

Audi Provides High-tech at the Low End

Even though Audi didn't have a brand new A3 on display at CES 2012, the firm did provide its dashboard. The entirely functional head device in this dashboard revealed Audi's latest cabin technology. More significantly, it demonstrated that Audi won't hold this technology for its high-end models.

The menus took the same circular format as in the A7, but Audi has further refined this interface for better usability. It is easier to find points of interest in the A3's navigation system, and Audi made it possible to use a free text search for locally stored music in the car. Where the A7 has a dial, buttons, and a touch pad for tracing letters, the A3 puts the touch pad on top of the dial, saving space on the console. This innovative layout worked very well during a demonstration at the Audi booth.

Other new cabin tech methods in the A3 involve what Audi calls a phone box, an area in the console enabled with NFC (near-field communication) that can pair with phones also using that technology. As of now, the phone still needs to plug into a USB port for charging, but Audi A3 is looking into installing an inductive surface. The new A3 also includes a head up-display, showing useful vehicle information such as speed and navigation projected on the car windows.

December 2011's Auto Industry News

What is the auto industry news in December 2011? Do you want to find the answer? Then come here,and you will know.

• Fiat will miss its target of 2.7 million sales next year, by half a million units. Combined Fiat-Chrysler sales remain on course to swell by 400,000 to 4.6 million cars, and CEO Sergio Marchionne is confident of shifting 5.9 million cars in 2014 (Automotive News Europe)

 • Silverstone has been given outline planning consent for its 'Masterplan'. The Northamptonshire-based circuit wants to develop business and technology parks, a museum of car parts and new retail, leisure and spectator facilities, creating up to 8,400 jobs (Silverstone Circuits)

 • UK trade body the SMMT reports that car production rose 8.5% in November 2011. This reflects the year-long rise in output at British car factories, swelling by 6.1% year to date (SMMT)

 • Lola and Drayson Racing Technologies will unveil their new electric race car at the 2012 MIA International Low Carbon Conference (Lola-Drayson)

 • The spectre of double-dip recession dented European new car registrations last month. Sales for the 11 months to December, declined by 1.1% to 12 million registrations, with France and Italy leading the decline (Automotive News Europe)