Proton, Suzuki sign MoU for collaboration
Proton and its owners DRB-Hicom have signed a memorandum of understanding (MoU) and license agreement (LA) with Japan’s Suzuki Motor Corporation to form a long-term strategic partnership that could potentially see the introduction of Proton-badged Suzuki models assembled in Tanjung Malim for the Malaysian market.
The MOU and LA were both signed earlier today at Proton’s Centre of Excellence headquarters in Shah Alam with Proton Chief Executive Officer Dato’ Harith Abdullah, Suzuki Chairman & CEO Mr Osamu Suzuki, and DRB-Hicom Chief Operating Officer Dato Radzaif Mohamed representing their respective companies. Witness the occasion were Dato’ Sri Mustapha Mohamed, Minister of International Trade and Industry; Tun Dr Mahathir Mohamed, Chairman of Proton; and His Excellency Makio Miyagawa, Ambassador of Japan to Malaysia.
“Suzuki is strong for its technology and expertise in producing smaller engine segments, especially in the A- and B-segment categories that would complement Proton’s 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 maximizing of volume potentials, reduction of development lead time, and expediting time-to-market for both companies,” said Dato’ Harith.
“A collaboration like this is common in the automotive industry where car companies work together to reduce cost, optimize operations, and realise market potentials. The first phase of the project is scheduled to start production in the next 16 months and the production will take place at the Proton Tanjung Malim plant,” Harith continued.
The specific model that would result from this first phase is yet to be disclosed, but sub-1,000cc compact vehicles has been indicated as an area which Proton aims to benefit from this partnership. A 16-month time frame suggests it will most likely be a rebadged model with minimal engineering variation from the donor vehicle, although it was stated that the companies are looking to explore joint development for future projects.
Moving forward, Suzuki is looking to use this partnership as a vehicle to grow its volume in Malaysia, albeit by selling some of its models with a Proton badge. Operations of the brand’s subsidiary in Malaysia, Suzuki Malaysia Automobile, is set to be rationalized.
Proton is currently also in partnership with Honda to rebadge the previous-generation Accord as a replacement model for the Perdana. At today’s press conference, Dato’ Harith confirmed that Phase 2 development of the model, which will involve more significant redesigning of the vehicle’s upper body and will be available for sale to the public, is still ongoing.
