Go secures first EEV manufacturing licence

KUALA LUMPUR: Malaysia Automotive Institute (MAI) CEO Madani Sahari (pix) said at least six car makers have submitted applications for energy efficient vehicle (EEV) customised incentives, while one or two more companies are expected to receive EEV manufacturing licences by end of this year.
He said this at the first EEV manufacturing licence handover ceremony to little-known private company Go Automobile Manufacturing Sdn Bhd yesterday.
GAM plans to invest RM2 billion to manufacture fuel-efficient sport utility vehicles (SUVs) for China-based Great Wall Motor Co Ltd (GWM).
Pressmen were made to understand that GAM is not related to Naza Group, as initially thought.
"GAM is owned by myself and my two partners, Wan Ahmad Wan Omar and Farok Maasom," said GAM CEO Ahmad Azam Sulaiman.
Earlier this week, it was reported by a local daily that GAM is a partnership between parties related to the Naza Group and GWM, China's largest SUV producer.
It was also reported that GAM is owned by Green Oranges Sdn Bhd, which is controlled by Datuk SM Shalahuddin SM Amin, the founding member of Naza Group, as well as Mohd Azli SM Nasimuddin Kamal, the son of late Tan Sri Sheikh Mohd Nasimuddin Kamal, who founded Naza Group.
"No, we are not related to Green Oranges, but Green Oranges is our (GAM's) dealer," Ahmad Azam told the press conference after the EEV manufacturing license handing over ceremony and the launch of tier zero automotive supplier excellence programme (T0 ASEP) here yesterday.
Ahmad Azam clarified that GAM does not sit under Green Oranges in its corporate structure as the two companies are totally separate entities. Hence, Shalahuddin and Mohd Azli do not own any stakes in GAM.
The new investment will be made by GAM solely, he said, and it is expected to be funded through a combination of internal funds and borrowings from local and foreign banks.
Ahmad Azam said GWM will not contribute to the investment at the moment. He however, did not rule out the possibility of GWM taking a stake in the form of joint-venture at a later stage.
GWM, the Chinese automobile manufacturer formed in 1984, currently owns Haval and Great Wall brands, covering products range of SUV, passenger car and pickup.
"The new investment consists of producing EEVs in the new plant in Gurun, Kedah, with a total production capacity of 100, 000 units by 2018," said International Trade and Industry Minister Datuk Seri Mustapa Mohamed in his speech.
The RM2 billion investment is planned over three phases, with first production as early as Sept 2014, as GAM will introduce two EEV-compliant models, the 1.5-litre Haval M4 and 2.0-litre Haval H6 cars to the local market.
The second phase with a production capacity of 50, 000 units will start operation by the middle of 2015 while the third phase with a total production capacity of 100,000 units will be ready by 2018.
According to Mustapa, the GAM- GWM partnership plans to export 60% of its output to other Asean countries, including Thailand and Cambodia.
The new investment by GAM in partnership with GWM is expected to create about 4,000 jobs in Gurun.
A total of RM500 million has been allocated for establishing a research and development (R&D) centre in Gurun, to develop higher fuel efficiency and reduce carbon emission of the vehicle, Mustapa added.