DRB-Hicom studying Proton-Indonesia joint venture

KUALA LUMPUR: DRB-Hicom Bhd is studying the proposed collaboration between Malaysia and Indonesia to produce an Asean car.
Group managing director Datuk Seri Syed Faisal Syed Albar said a discussion on the matter is taking place as a memorandum of understanding was signed in 2015 between its subsidiary, Proton Holdings Bhd, and an Indonesian company to undertake the joint effort.
“There is no cost involved and we need to study it a lot,” he told reporters after briefing the Council of Eminent Persons here today.
Proton is 50.1% owned by DRB-Hicom and 49.9% by China-based automaker Zhejiang Geely Holding Group via its wholly-owned subsidiary, Geely International (Hong Kong) Ltd.
It was reported earlier that the joint effort between Proton and Indonesia to produce an Asean car would be revived following talks between Prime Minister Tun Dr Mahathir Mohamad and Indonesian President Joko Widodo during the former’s visit to Indonesia last month.
Meanwhile, Syed Faisal, who is also Proton chairman, disclosed that Geely has invited Mahathir to visit the company’s facilities in China during the prime minister’s visit to the country next month.
Syed Faisal gave an assurance that the launch of the first Proton sport utility vehicle (SUV) will take place as scheduled in October.
He said the briefing today also covered future technology offered by Geely.
“Tun Mahathir likes the SUV that we loaned to him earlier, which indirectly shows that he has confidence in Geely’s technology in Proton,” he said.
On the Mahathir’s plan for another national car, Syed Faisal said he believes that Proton, as the national car, has secured the confidence of banks, vendors and dealers. “In that regard, we will think of Proton first, and there will be no change in direction on that.”
Syed Faisal reiterated the group’s commitment to pursue a 30% price cut from its automotive parts suppliers by year-end.
Also present at the briefing was Dr Li Chunrong, CEO of Proton’s manufacturing arm, Perusahaan Otomobil Nasional Sdn Bhd. – Bernama