Suzuki Malaysia stops its local production line after MOU with Proton

Kuala Lumpur: Suzuki Malaysia Automobile will not be manufacturing anymore on Malaysian land as the Japanese automaker has stopped its vehicle assembly at Pekan production plant. This announcement came out rolling after Suzuki and Proton signed a Memorandum of Understanding and License Agreement back in June. This suggests that Proton will now be manufacturing on the Suzuki platform in Malaysia and Suzuki will be ceasing the sales of CKD (Completely Knocked Down) vehicles from now on in the country.

Both the companies signed an MOU back in June in as a part of which our local car manufacturer Proton will get access to models, platforms, powertrains and automotive technology of Suzuki. Apart from which Suzuki will also be providing technical assistance to Proton regarding its products on sale in Malaysia under various scopes.

Suzuki took this extreme step considering the lower volume sales of its vehicles in the country and maintaining the huge plant was not economically feasible for the carmaker. Thus, now Proton is expected to launch their Suzuki-rebadged models in Malaysia.

Read Also: Proton and Suzuki Unite Together For Compact Car Segment

The previous Suzuki owners need not worry much as the company has planned not to shut down its service centres nationwide. The source also added that Suzuki will still be around to serve its existing customers.

On the other hand Proton is quite excited with the deal and is looking for bigger profits, the local carmaker is said to be producing around 60,000 and 100,000 Suzuki models for both local and export markets.

Hence, we can expect a Proton Swift soon, what's your take on the deal!

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