Published on October 11th, 2018 | by Subhash Nair0
Proton Vendors Sign Agreement with Overseas Counterparts
PROTON took another step for the local production of the X70 SUV when a number of its vendors signed collaboration agreements with their overseas counterparts at a ceremony here today. The first batch of
agreements to be signed, ranging in scope from joint ventures to technical assistance, will bring an initial investment of RM170 million to Malaysia. The amount is expected to multiply over the years in tandem with increases in PROTON’s manufacturing volume.
The signing of agreements between Malaysian and overseas vendors is the first step in establishing a supplier base capable of meeting the technology and quality standards required to manufacture the next generation of Proton cars to be jointly developed with Geely. It is also a commitment by PROTON to grow its sales locally and via export markets as Tanjung Malim is transformed into a research and development as well as production hub for right hand drive models within the Geely Group.
To achieve this, PROTON is investing RM1.2 billion in plant expansion initiatives to cater to the manufacture of all new Proton models in Tanjung Malim. This is in line with the strategic partnership agreement signed between PROTON and Geely in 2017 with the intention to rejuvenate PROTON and its model offerings. The long-term goal is to re-establish the brand as a market leader domestically while growing its presence internationally, particularly in ASEAN right-hand-drive markets.
Proton X70 assembly to begin in 2019
The Proton X70 will be the first model jointly developed by PROTON and Geely to be manufactured at the Tanjung Malim plant. Prior to its launch, it will be displayed at a series of customer previews designed to introduce Malaysians to PROTON’s first SUV. Customer response has been very encouraging with many placing bookings with a deposit of RM1,000 since the order book was opened on 8 September.