Paul Tan's Automotive Industry News

Proton and Chery discussing two-way partnership

More developments on Malaysia-China automotive industry relations. Previously there were rumours on Proton’s involvement with Jinhua Youngman and Chery. Jinhua Youngman was believed to have entered a deal with Proton to assemble Proton CKD kits in China and rebadge them as Jinhua cars.

Now there is news on talks between Proton and Chery Automotive Co Ltd for a two-way partnership which would allow Proton cars to be assembled for the growing Chinese market, as well as providing Chery a base for automotive assembly here in Malaysia. While Proton and Chery officials did not comment much on talks, word is that talks have advanced to a relatively advanced stage although no final agreement has been reached yet.

The outcome of this would likely be Proton CKD kits assembled at Chery facilities for the Chinese market, and Chery CKD kits assembled at Proton’s facilities for the Malaysian market. But I wonder what of the NAP ruling regarding selling assembling capacity to 3rd party manufacturers.

24 Comments »

  1. motorhead said,

    March 30, 2006 @ 3:09 pm

    haha.. good la..

    proton = chery = quality…

    i guess… any komen?

  2. triplesaber said,

    March 30, 2006 @ 3:28 pm

    the name chery reminds me of a p*rn megazine my bro brought back frm Canada years ago..hehe.
    If Proton can sell cars in China, then good la. The population is so huge, and perhaps Proton can make enuff money to finally stop relying on G’s protection, and invest in making good cars tht can compete with the majr players. i just hope it wont drag Protong down into another costly mistake.

  3. dfs3000my said,

    March 30, 2006 @ 3:32 pm

    Hmm, I can still recall that there was one test collision on the cherry models and what did it end up? Well, looks like a milo tin anyway. I hope that proton will improve the cherry quality and not end up adapting that quality. ;)

  4. pycazu said,

    March 30, 2006 @ 3:32 pm

    See how P1 will perform in the toughest car arena with so many big players around. Oversea market never can create a way of escape for P1…

  5. kody said,

    March 30, 2006 @ 4:01 pm

    Wahlaueh…

    motorhead bro, this is the actual formula
    PROTON + CHERRY = TONG SAMPAH…
    just my own 2 cents. Good & bad together you can become either good or bad, when bad + bad then become nightmare WORST…
    P1 go sell to VW, then ur core markets custoers will gain confident faster. :)

  6. motorhead said,

    March 30, 2006 @ 4:09 pm

    hahaha…

    mine a bit polite… but yours can use osolah…. hahaha… lucky i am not a tong sampah driver..

    hehe..

  7. HatukNgkau said,

    March 30, 2006 @ 4:19 pm

    Paul Tan said,
    March 30, 2006 @ 3:07 pm

    But I wonder what of the NAP ruling regarding selling assembling capacity to 3rd party manufacturers.

    ============================================

    don worry, have u forgotten the “case by case basis” clause after that? Proton will get approval. Semuanya OK!

  8. Denniz said,

    March 30, 2006 @ 4:19 pm

    2 Negatives = Positive. :D

  9. tariq said,

    March 30, 2006 @ 4:20 pm

    *cough cough*

  10. kuntakinte said,

    March 30, 2006 @ 4:50 pm

    No matter how far, a loser will always be able to spot their own kind.

  11. mystvearn said,

    March 30, 2006 @ 4:58 pm

    Lets try to recap the Chinese market for a while here. Proton are making slightly better cars than Cherry, so by entering China, people over there can choose between worse quality Cherry or “slightly” higher quality proton. Or yet they can choose better quality from other international car manufacturers.
    Proton will utilize its factory to full potential as it will have some “work” in manufacturing other cars, as for the sales of cars Malaysian’s are even more sceptical of Cherry than Proton so proton sales would not be that affected here. Unless of course Cherry is the next KIA/Hyundai, then it will it the national car market.
    Since VW wanted controlling stake, acnd could not obtained it, maybe proton should go a “MV augusta” towards VW and get quick cash LOL. Though I don’t think this will happen. I am not sure how on earth dod proton not know what they had with MV augusta anyway.
    Back to the Cherry thing, hopefully proton does not plan to with cheap low quality parts from Cherry for their upcoming models just to make prices competetive….

    But short term prospect for the normal people like us is that we just LOL at the idea

  12. E-Nabill said,

    March 30, 2006 @ 5:15 pm

    buy one p1 , free one cherry!
    i hope this partnership wil help p1 more than cherry…if it translates to p1 selling more cars thn no problem,anything othr than that…thn the idea of chery flooding msian market really scares me…

  13. kody said,

    March 30, 2006 @ 5:26 pm

    Wahlaueh…
    Time will prove how well our infant(P1) will develope… either get sick n die…, doing so so…hoping PAPA protection again n again… now try to get a friend with almost same capabilities… i wonder what can p1 learnt from?? only access for assembly there n save cost to penetrade China market. May be the WAJA still can sell overthere… but tolong….dun bring the GEN 2 to there…
    p/s i still prefer WAJA than GEN2 because of outlook, space, interior & class(waja interior looks more class than GEN2)

  14. accordmania said,

    March 30, 2006 @ 11:10 pm

    Proton Cherry is sound like a delicious ice-blended cherry with cream + vanilla flavored icecream potong….mmmm…sure sell like hot cake.

  15. rexis said,

    March 31, 2006 @ 8:06 am

    Well it sound very milo to me… milo tin

  16. Initial D said,

    March 31, 2006 @ 9:13 am

    anyway, this better happen…………….coz………better than none.

  17. Sharfox said,

    March 31, 2006 @ 10:03 am

    Hmmm…. As usual,
    Costly mistake la…wrong decission la, better go with VW la…. c’mon la Bros. I remember when we discussed about the JV bt P1 and VW. Most of us bash both P1 and VW. And then the JV thing is being hold and there you came again and bash. Now, P1 are looking for a cost effective yet massive market by signing with Cherry and then getting bashed again.
    Any possitive feedback in terms of economic of scale? Non I guess. Now, Cherry is one good thing to bash rite?… That’s ou problem since ‘green’… we judge b4 they can show something to us. Bro Initial D, I kinda agree with U, better happen than none.

  18. catborg said,

    March 31, 2006 @ 12:07 pm

    Sharfox..
    the blind basher still stupid basher..
    just ignore them.. they just rubbish..

    anyway.. china is very big market..
    even there’s many market palyer outside ther..
    but if you can get 1% from their BILLIONS punya market rakyat..

    how much was it?

    THINK!

  19. motorhead said,

    March 31, 2006 @ 12:28 pm

    poton can la.. at least quality a bit better la… may be can market in china.. good oso la.. furthermore international deals getting more relevan nowdays… just dont bring china quality to msia la.. see how cheap skuters doin in msia.. buy 1 free 1 people oso never buy, like disposable junks …& never saw a single cheery car oso.. i wonder how cherry Datuk can tahan…

    but i heard gen2 2006 model have many improvement.. anyone can verify??

  20. chris_the_germ said,

    March 31, 2006 @ 1:52 pm

    goosebumps! Proton with Chery quality going around in China?

    I don’t think that this will have any effect on Proton. China is too competitive in car prices. And I would only assume that Proton’s costs are higher than anybody elses, cause of economies of scale. Or: expect Chinese Protons for RM 20,000…

  21. outspoken said,

    March 31, 2006 @ 2:40 pm

    is money what? and proton cars wll be rebadged in china.. so no direct effect on proton’s brand name..

  22. Proton signs pact with Chery and Jinhua » said,

    May 24, 2006 @ 11:05 am

    [...] Proton targets 100,000 cars for the export market by 2008. Partnerships with Chinese and Indian companies will allow it access to more markets and hopefully help it achieve it’s 100,000 cars target. Related Posts: Proton and Chery discussing two-way partnership Proton to announce tie-up with Chinese firm this week Proton and Chery partnership Proton and Jinhua Youngman Automobile in partnership [...]

  23. ah_birdy said,

    May 25, 2006 @ 9:35 pm

    Hi motorhead,
    Infact Chery is a high quality car company, if you ever been to China. I have drive and see a lot of different model Chery in China. Even some Taxi is using Chery in China. Proton quality really need to be improve.

    The Chery models which sell in Malaysia is at the cheaper range among Chery models. For example QQ is just RMB2,9800=RM1,4000(Ringgit Malaysia) in China-even cheaper than a Kancil, but in Malaysia, it is selling at a higher price. That is why you all felt the quality not good. because
    “Expensive price, But lousy quality.” But infact, “It is very cheap car, but govenment tax allot compare others Foreign cars.” If not, even Kancil also cant survive.

    http://www.alado.com.my/web/models/M14.html
    See this… then it will show you the technology where Proton achieved.

    China have a lot of high quality and high technology product, just we Malaysian prefer to import cheaper products, that is why the quality if not good.

  24. Assorted Proton announcements said,

    September 1, 2006 @ 11:53 pm

    [...] Memorandum of Understanding between Perusahaan Otomobil Nasional Sdn Bhd, Chery Automobile Co Ltd and Alado Corporation Sdn Bhd to be extended for another 2 months subject to approval of Board of Directors of all three companies. This is likely to do with the talks Proton has been having with Chery on a joint venture in assembly and distribution for Proton cars in China as well as Chery cars in Malaysia. [...]

previous post: NAP After-Effects: Proton reduces prices further
next post: The Fast and the Furious Tokyo Drift Movie Trailer

Leave a Comment

You must be logged in to post a comment.

Don't have an account?

If you do not have an account on paultan.org, please click here to register. Note that first time commenters will have to be approved before your comment appears.

Please do not submit your comment twice, the system has accepted your comment, it just needs to be moderated first. Once your first comment is approved, all subsequent comments will show automatically.

What are you waiting for? Register now!