Proton and Suzuki Unite Together For Compact Car Segment

KUALA LUPUR : The local car maker of Malaysia, Proton signs a legal document with the Japanese automaker, Suzuki Motor Corporation to overcome it's hardships in the market. The letter, signed between the two, aims to boost sales for the local car manufacturer by focusing on the compact cars segment.

Officials said that the license agreement is to “form a long-term strategic collaboration and partnership.”

The first car, which will be out for sale after the agreement would be a Suzuki car, assembled at a Tanjung Malim's plant in Northern Perak state. The production of the same would start in next 16 months.

Mahathir Mohamad, Proton Chairman said that “This is one of our attempts to enhance the performance of Proton. We feel that we can learn and work with this company because it has the technology for compact cars and small cars."

On inquiring about Suzuki's stake in the company, Mahathir said, “it is still early days. There are many possibilities. I can't confirm that yet”.

Once the ruler of the road in Malaysia, Proton is now finding it difficult to cope up with the competition, due to the entrance of foreign auto brands affecting its sales in the country.

The partnership would result in a WIN-WIN situation for both the companies, as Suzuki is currently importing fully built cars in Malaysia. Now, after the agreement it could setup it's foothold in the country with ease.

The combined venture would challenge the No. 1 compact cars maker, Perodua in Malaysia.