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VW to manufacture cars in Malaysia in 2011

21 December 2010 Last updated at 12:00 GMT

The German car manufacturer Volkswagen has announced it will start producing some of its cars in Malaysia.

It has joined forces with the local auto group DRB-Hicom Berhad who supplied 70% of the investment.

The VW group, which includes brands such as Audi, Skoda and Seat, aims to boost sales and production in Southeast Asia to between 40,000 and 50,000 over the next few years.

Jennifer Pak reports.