Monday, October 19, 2015

The Go Auto factory visit - The GWM Haval M4 local assembly and how contract assembly is done properly


A while ago I had a chance to visit the Go Auto assembly plant in Gurun, Kedah. Go Auto is currently distributors and assemblers for the Great Wall Motors (GWM) brand of vehicles here in Malaysia. It isn't just the Great Wall Haval M4 being assembled here actually. But there is more to them than meets the eye. 

The Go Automobile Manufacturing Sdn Bhd plant began operations sometime in 2011 and started out assembling vehicles and 4x4 pickup trucks belonging to Great Wall Motors. These days the plant can assemble slightly more than 300 units of vehicles per month and there are plans to expand the size of the factory so that it may eventually produce over a thousand vehicles per month. At the moment operations are on a smallish scale compared to the NAZA plant located in front of it. The Go Auto plant may be small but what I could see is an efficient system implemented. And they do not only assemble Great Wall Motor vehicles, they also contract assemble for other automotive brands from China too.


There are three assembly 'lines' or areas within the confines of the plant. The third line assembles heavy automotive vehicles. These are large trucks – tippers or even prime movers or full sized bus chassis. Currently this line actually assembles Dong Feng tipper trucks (shown above and below) for the local distributor. It is a simple setup where a few very skilled personnel actually assemble about two to three trucks per month. This is quite a nice feat to watch as you see only three or four people working at a time finishing up a large vehicle with relative ease. Of course, this is why technical skill is important.



The second line is the one that contract assembles commercial vehicles like the 13 seater passenger vans, food trucks and other mid-sized vehicles. You would see JinBei food trucks assembled here, or ZX Auto 4x4 Pick Ups that are sold in Thailand assembled here or GAC SUV in left hand drive for exports to Cambodia. When I was there, they were assembling BAIC passenger vans that are for our Malaysian market.


The main line is the one that most of us would be interested in. It currently produces about 300 units of the Haval M4 SUV monthly – This is currently the only vehicle being assembled as production of the the Wingle Pick Up truck has ceased for the time being (more concentration by Go Auto on niche market cars like the Haval M4 and the upcoming Honda CRV sized SUV). Most of this are for the Malaysian market and later, these would be exported around the right hand drive ASEAN market. It would seem that the Go Auto plant is actually a centre for assembling right hand drive vehicles as well as vehicles that would benefit from the ASEAN tax breaks. Which is why this small plant has the potential to make it really big regionally by assembling Made in China vehicles. Quite a clever move by the people who manage Go Auto.

Chassis assembly

Anyway, during the walkabout around the plant as well as information garnered during the initial briefing by the Production Plant Manager, Mr. Yusof bin Saad, I am of the opinion that the operating style of the plant is quite unique. They use something called a tier zero system, whereby there are vendors who actually assemble the main line cars like the GWM Haval M4 for Go Auto instead of Go Auto staff themselves. There are six main vendors that actually do the warehousing or parts, parts quality control and assurance, chassis assembly, interior trim, final installation bits and fluid filling (coolant, oil, brake fluid etc). The parts from the warehouse are sorted and sent to the assembly line where it is checked by a vendor, passed and then assembly by the chassis vendor is done. Then when this part has been completed, an initial check is done before the next vendor starts his assembly and this continues until the end. Each and every end of station a QC check is made until the whole car is completed where a final check and pass is given by Go Auto staff themselves.

This system actually makes things quite efficient and the fact that the vendors would not simply release a vehicle unless it hits a certain approval. Of course, this sorts out most of the issues in assembling a vehicle but even so it does not fully ensure that all cars would be perfect. Vehicle imperfections are lessened. I have seen Haval M4 test mules with 100,000km and 205,000km which do not rattle. This is a good sign that the system works. But whilst I do think that this system cuts down a lot of problems upon delivery. Of course, there are still the occasional issues here and there which I have heard. Nothing is 100% perfect, if it were, the people running Go Auto wouldn't be mortal men or women.

Trim Assembly

This lean and mean system is what allows Go Auto to assemble cars quickly. The operation rate for the plant is 85% capacity with 14 to 16 units of the Haval M4 per day. I was quite impressed with the overall setup. Their intention to become a leading assembler for smaller brands for the ASEAN market is a good move. In fact, there have been also talk by Asian countries who are not members of ASEAN to actually enter into negotiations with Go Auto on behalf of some of the Chinese principals. It goes to show the trust put into this company by them.

Eventually when the plant expansion is done, the Go Auto plant could become a player in the regional market. This is actually so unlike some of the assembly plants we have here which only cater locally. Thinking global or even regional is a very, very, good thing. Enough of this 'jaguh kampung' or local hero mentality. And it is quite surprising that we see something like this happening in a factory in the heartland of Malaysia. I think this happens when the people who work at a place actually believe wholeheartedly in what they are doing. From the management to the people who assemble the vehicles. This is actually so different from the norm.

This human touch may be the key to Go Auto's further success. 

Completed cars go through rolling road tests for brakes and engine on the right of the photo. After this they go through a simulated rain shower before being passed by the QC people.



Two Jin Bei commercial vehicles and a black coloured GWM hatchback that was under evaluation beside a Perodua . It was this or the Haval M4. And the M4 won.

After the visit, I got a chance to test this 205,000km+ Haval M4 AMT test mule. Nothing rattles and it was on its original AMT clutch, gearbox and engines.  We took it through the paddy field tracks, to an island nearby and up Gunung Jerai. The review of that drive can be read here


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