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]