DRB-Hicom Studying Proton-Indonesia Joint Venture

KUALA LUMPUR, July 10 (Bernama) -- DRB-Hicom Bhd is studying the proposed collaboration between Malaysia and Indonesia to produce an ASEAN car. Group Managing Director Syed Faisal Albar said a discussion on the matter was 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 Tuesday. Proton is owned 50.1 per cent by DRB-Hicom and 49.9 per cent 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 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 had invited Dr Mahathir to visit the company’s facilities in China during the Prime Minister's visit to the country next month. He also reassured that the launch of the first Proton sport utility vehicle (SUV) would take place as scheduled in October. Syed Faisal said the briefing Tuesday also covered the 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 Prime Minister’s plan for another national car, Syed Faisal believed that Proton, as the national car, had 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,” he added. Syed Faisal also reiterated the group's commitment to pursue a 30 per cent price cut from its automotive parts suppliers by year-end. Also present at today's briefing was Dr Li Chunrong, Chief Executive Officer of Proton's manufacturing arm Perusahaan Otomobil Nasional Sdn Bhd. -- BERNAMA