Bengt M' Svensson

1
Bengt M. Svensson

• Fmr Vice President
• Overseas Manufacturing
• Volvo Car Corporation

2
Volvo Cars in South East Asia

• Focus on Manufacturing
• within ASEAN

3
Why Manufacture Cars in South East Asia?

• Historical and current national trade barriers in
  the entire ASEAN region (duties and taxes)
• Continuous postponements of made agreements to
  ease trade
• Strategic decision - a growth area

4
Volvo Cars History in South East Asia

• Manufacturing Establishments
• 1967- Malaysia (JV gtVCC) Still in
  operation
• 1975-1998 Indonesia (JV)
• 1976- Thailand (VCC) Still in operation
• 1980-1981 Singapore (JV)
• 1997-1998 Philippines JV)

5
1997-1998 The Turning Point

• Plant closures and temporary shutdowns
• Implementation of AICO
• Forming a 100 percent owned National Sales
  Company (Volvo Cars Malaysia)
• Aquire full ownership of the factory (Swedish
  Motors Assemblies)

6
Malaysia after 1998

• Launch of the full new VCC product range- from
  S80 to the new S40
• VCC still dependant of Contract Assembly in the
  factory
• National Cars still dominating
• Japanese and now also Korean brands growing
  stronger
• Jan 1, 2005, a Key date
• will the AFTA members honour the agreement
  allowing internal AFTA trade of cars?