Published on June 16th, 2015 | by Subhash Nair0
PROTON Form Long Term Strategic Partnership Between Suzuki Motor Corp & DRB-HICOM
PROTON Holdings Berhad, DRB-HICOM Berhad and Suzuki Motor Corporation, Japan today signed a Memorandum of Understanding and License Agreement to form a long term strategic collaboration and partnership between the three companies. Signing on behalf of PROTON was YBhg Dato’ Abdul Harith Abdullah, Chief Executive Officer of PROTON, on behalf of Suzuki was Mr Osamu Suzuki, Chairman & CEO of Suzuki Motor Corporation, Japan whilst on behalf of DRB-HICOM was YBhg Dato’ Radzaif Mohamed, Chief Operating Officer, Automotive Distribution & Manufacturing. The event was graced by Yang Berhormat Dato’ Sri Mustapha Mohamed, Minister of International Trade and Industry, PROTON Chairman and former Prime Minister of Malaysia, the Honourable Tun Dr Mahathir Mohamad and His Excellency Makio Miyagawa, Ambassador of Japan to Malaysia. Also present were Yang Berhormat Datuk Ir. Haji Hamim Samuri, Deputy Minister of International Trade & Industri and YBhg Dato’ Syed Mohamad Syed Murtaza, Chairman of DRB-HICOM and a Board Member of PROTON.
The spirit of the collaboration encompasses four main areas which are products, technology, people and market. With this collaboration, it would allow PROTON to have access to the models, platforms, powertrain and automotive technology of Suzuki. Suzuki will then provide the specific technical assistance for the products and scope selected. “Suzuki is strong for its technology and expertise in producing smaller engine segments, especially in the A and B segments categories that would complement PROTON Long Range Product Plan.
We look forward to the collaboration as this gives us the opportunity to tap into each other’s strengths which can result in the maximising of volume potentials, reduction of development lead time and expediting the time-to-market for both companies. Suzuki is a renowned global strategic partner and has presence in 13 countries operating via 19 plants. What’s more, Suzuki sells approximately 3 million cars a year globally. The collaboration will also see all three parties working together to rationalise Suzuki’s presence in Malaysia.
Currently, Suzuki is operating through its co-owned subsidiary, Suzuki Malaysia Automobile Sdn Bhd (“SMA”). SMA is owned by DRB-HICOM (40%), Suzuki (40%), and Itochu Corporation (20%). The rationalisation is expected to be completed within one year after the signing.