Proton recruits expertise from Peugeot
Following earlier reports of talks between the two firms, Malaysian automaker Proton and PSA group (Peugeot/Citroen) have signed an agreement for inter-company collaboration.
Proton, which once enjoyed a practical monopoly in its domestic market, is facing higher competition after the Malaysian government began relaxing import laws and allowing foreign cars into the market. To keep up with the competition, Proton is entering into a partnership with PSA that will provide them with the French automaker's considerable experience, starting with product development, through assembly and quality control, and all the way down to distribution.
PSA, meanwhile, will benefit from an improved foothold in Malaysia which could serve as a base of operations for all of Southeast Asia.
[Source: Reuters via Yahoo! India]
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Reader Comments (Page 1 of 1)
Bob Damon 5:56PM (9/19/2006)
Proton can use the help. The Malaysian market is highly competitive. Proton has sold a lot of cheap cars when the Malaysian government kept competitor prices high, but on a level field they would get crushed. They do make some recent models that look good, but I rode in a lot of Proton taxi's that were just not on the same level as foreign vehicles. Just like other countries, those with money are choosing higher end status vehicles - BMW, Lexus, MB.
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UH2L 6:14PM (9/19/2006)
That's a sweet logo. I've only seen pictures of Protons, but I'm sure that they can make a global stand like Tata in India has started to do.
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