KUALA LUMPUR: Proton Holdings Bhd and Zhejiang Geely Holding Group have agreed to set up a joint venture for Proton to assemble and market its cars in China.
According to a statement issued by Proton, the 50:50 JV will include the set-up of a production facility in China to assemble cars and the development of a network of dealers to market Proton in the country.
The portfolio of cars for China will primarily come from existing Geely platforms, although the external design of the vehicles will be undertaken by Proton.
The agreement also provides for existing Proton platforms that are found suitable to be developed into models for the Chinese market.
“Clearly with Geely on board, Proton’s route into China has become more tenable. Part of Geely’s role is to secure the manufacturing licenses and regulatory approvals required for such a venture under China’s regulations. Geely will also identify a suitable location where the manufacturing facility is to be based”, said DRB-Hicom
Group Managing Director Datuk Sri Syed Faisal Albar.
Proton added that existing Proton component vendors with the requisite quality and competitive edge may also be considered as suppliers for the JV company.
"Prime Minister Tun Mahathir Mohamad had lamented previously the lack of Malaysian car exports into regional markets, despite Japanese, Korean and Chinese brands making their way onto Malaysian shores," it said.
The parties target to incorporate the JV within the first half of 2019.