Sime Darby Enters Assembly Agreement With Kia
News: Malaysian distributor Sime Darby, through its wholly owned subsidiary Sime Darby Kia Taiwan, has entered into technical licence agreements with South Korean automaker Kia Motors to assemble completely knocked-down (CKD) Kia passenger vehicles in Taiwan. The move is part of the company's strategy to expand its business in the Asia Pacific region. The company's Taiwan operations are expected to begin by H214 with the launch of the first two CKD models, according to Sime Darby Motors executive vice president Datuk Lawrence Lee.
BMI View: We expect vehicle production in Taiwan to firmly remain on a positive growth trajectory, aided by strong increases in production after 2015, due to VW commencing production then.