25 April 2011 | Corporate News
UMW TOYOTA MOTOR HIT ONE MILLIONTH VEHICLES PRODUCTION
Shah Alam, April 25 – UMW Toyota Motor's manufacturing facility, Assembly Services Sdn Bhd (ASSB) lined-off its one millionth production vehicle, the Toyota Vios TRD Sportivo. This milestone positions ASSB as the first non-national vehicle manufacturer to hit the one millionth mark in Malaysia.
The event to mark the significant milestone was held in the presence of YB Dato' Sri Mustapa bin Mohamed, Minister of International Trade and Industry. Also present at the ceremony was His Excellency, Mr. Masahiko Horie, Japanese Ambassador to Malaysia; YBhg Tan Sri Asmat Kamaludin, Chairman, UMW Toyota Motor Sdn. Bhd.; Mr. Takashi Hibi, Deputy Chairman, UMW Toyota Motor Sdn. Bhd.; En. Ismet Suki, President of UMW Toyota Motor Sdn. Bhd., YBhg. Datuk Syed Hisham bin Syed Wazir, President and Group CEO of UMW Holdings Bhd.; and Mr. Yasuhiro Yomoda, General Manager, Toyota Motor Corporation, Japan.
Speaking at the line-off ceremony, YBhg Tan Sri Asmat Kamaludin, Chairman of UMW Toyota Motor Sdn Bhd said, "I would like to congratulate all ASSB personnel for their strong dedication, teamwork and commitment all these years that have made this achievement possible. We would also like to thank all our vendors who have contributed to this milestone. A special thanks to the Malaysian and Japanese Government for their continuous support to the local automotive industry."
UMW TOYOTA MOTOR GROUP ACHIEVEMENT
ASSB first started its production 43 years ago in 1968. Since its inception, ASSB has accomplished many achievements and overcome challenges. In the year 2000, ASSB achieved production volume of 500,000 vehicles and doubled its production volume to one million vehicles within just 10 years. Strong Toyota sales in the country have contributed to this achievement and further strengthened ASSB’s position as one of the most important Toyota manufacturing facilities in South East Asia.
Commenting on company's investment, Tan Sri Asmat said, "For the past five years (2006-2010), UMW Toyota Motor Group has invested RM900 million and out of that amount, RM460 million was utilized for ASSB mainly to improve quality and production efficiency."
UMW TOYOTA MOTOR POLICY
UMW Toyota Motor's business direction and practices has always been guided by the National Automotive Policy (NAP). The company has taken initiatives to increase localization to produce its vehicles. When the second generation Toyota Vios was introduced in 2007, the company has increased the number of local parts to include the big stamping body parts, and resin parts such as bumper and instrument panel.
UMW Toyota Motor also puts high priority on vendor development. "We encourage our local vendors to implement the Toyota Production System (TPS) at their manufacturing facilities in order to improve quality, cost and delivery. Furthermore, we also encourage them to acquire technical collaboration with global vendors to enhance their production technology," added Tan Sri Asmat. Currently, the company has a total of 60 first tier local vendors.
The company has also expanded its export business to RM 915 million last year, reflecting 36% increased compared to RM 670 million in 2009. This includes exportation of vehicles to Thailand and multi-sourcing parts to some Toyota affiliates in Asia Pacific.
On Human Capital Development, Tan Sri Asmat commented, "We have established several programmes to develop and train our people with knowledge and skills." Among the training conducted at ASSB Training Centre is the 'Standardize Work'. In the course, staff also learn how to improve their daily task by adjusting their work processes themselves.
As part of the company's effort, the Inter Company Transfer (ICT) programme was established in 1992 and so far 110 engineers and staff have gained experience at Toyota Motor Corporation in Japan, Toyota Motor Asia Pacific in Thailand and Singapore.
Furthermore, UMW Toyota Motor also supports the Look East Policy encouraged by the Malaysian government. Currently there are a total of 27 Japanese university graduates working at ASSB.
UMWT GROUP FUTURE INVESTMENT
Tan Sri Asmat further commented, "To live up to our customers' expectations, we will further invest RM 1 billion in the next 3 years." From the amount, RM350 million is allocated to develop ASSB, including Camry CKD project preparation by 2012. Another RM300 million will be invested for network expansion and enhancement. On top of that, an investment of about RM200 million has been allocated to build a new centralized stockyard in Bukit Raja, which is scheduled to start operations by second half of 2011. The facility will also accommodate a test track, accessory centre, body and paint centre. On top of the RM 1 billion investment, Toyota vendors and dealers will also invest a substantial amount to improve their operation.
UMW Toyota Motor also has plan to increase its Vios local parts in the next model change by adding more high value parts and bulky items such as ECU, chrome plated resin parts, etc.
"UMW Toyota Motor is geared to further contribute to the nation’s economy and society. This will enable us to become one of the most desired organizations in this country. In line with our Customers' First philosophy, we are committed with the company’s theme for this year, "One Team, Customers First" and will continue to produce high quality products and services in the future. This will further strengthen our position as the top-selling non-national brand in the country," concluded Tan Sri Asmat.
UMW Toyota Motor seeks further support from the Malaysian and Japanese Government to expand its future manufacturing operations. The company also looks forward for the Malaysian government's further implementation of the National Automotive Policy to ensure a long term competitiveness of the automotive industry.
ABOUT ASSEMBLY SERVICES SDN BHD
Assembly Services Sdn Bhd (ASSB) is a wholly owned company by UMW Toyota Motor Sdn Bhd. It started its operations more than 43 years ago in 1968, under the name Champion Motor. The first Toyota vehicle being rolled out from the facility was the Toyota Corolla KE10.
The facility was placed under the UMW Toyota Motor Group after the Joint Venture company between UMW Corporation and Toyota Motor Corporation was formed in 1982. From there, the facility was developed and has gone through modernization stage from 1990 to 2000. ASSB reached its milestone of 500,000 vehicles in year 2000. In 2011, ASSB has further developed itself into an important Toyota manufacturing facility in this region and hit a new milestone of one million vehicles.
ASSB currently manufactures Toyota Vios, Fortuner, Hilux, Innova and Hiace models. They also produce Hino cab and export certain Hiace model to Thailand.
ASSB Production Volume 2000 – 2010 (including export)
ABOUT UMW TOYOTA MOTOR SDN. BHD.
UMW Toyota Motor Group, is a joint venture between UMW Corporation Sdn Bhd and Japan's Toyota Motor Corporation and Toyota Tsusho Corporation.
UMW Toyota Motor Group subsidiaries are Assembly Services Sdn. Bhd. (ASSB), Toyota Boshoku UMW Sdn. Bhd. and Automotive Industries Sdn. Bhd. (AISB) while associates companies are KYB-UMW Malaysia Sdn. Bhd., KYB-UMW Steering Sdn. Bhd. and JTEKT Automotive (Malaysia) Sdn. Bhd. The company is the exclusive distributor of Toyota and Lexus models in Malaysia. UMW Toyota Motor has established an extensive network of 90 sales and after sales outlets including dealers, throughout the nation.
Under the company's theme of "One Team, Customer First", UMW Toyota Motor puts high priority and attention to customers' needs and demands. Toyota's philosophy of improving the quality of life and contributing to the society where they operate their business is exemplified through innovative products and services, building and maintaining sound relationships with customers; business partners and employees, the preservation of the environment and honouring the language, law and culture of the society they live in.