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UMW Toyota not manufacturing cars locally

Apparently The Edge Daily’s reporter had misinterpreted UMW Toyota Motor’s Managing Director David Chen’s statements at the Kuala Lumpur International Automotive Conference last week.

There is no plan to manufacture any Toyota models in Malaysia. Toyota is just designating Malaysia as one of it’s regional production centers for certain models. Toyota currently uses Thailand as it’s passenger car and pick-up truck center and Indonesia for MPVs and SUVs. Malaysia will be the production center for some models, but only for assembly and the first would be the van that is being exported.

Perhaps there was some confusion with terms like manufacturing and assembling. This is the problem with mainstream news sources that are not automotive news-focused, most of the time their journalists do not have a full understanding on how the industry works, and the jargon involved.

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UMW Toyota to manufacture cars locally

Source: Chips Yap

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UMW Toyota to manufacture cars locally

UMW Toyota Motor Sdn Bhd is taking it’s operations here to the next step. It will start manufacturing cars here in Malaysia, with the first roll-out expected in 18 months time.

Toyota’s sales success of around 7000 cars a month has reached a milestone where it will begin to be financially feasible to manufacture vehicles locally instead of importing CKD kits and merely assembling them here in Malaysia. These Malaysian-manufactured Toyota cars would have over 60% local content. Toyota officials did not mention which models would be manufactured locally, but it is likely the high volume models like the Toyota VIOS which accounts for 1,500 units of the 7,000 monthly sales figure.

There is a future possibility of price reductions for the locally manufactured vehicles from cost-savings from its operations, but this is just a possibility. UMW Toyota is also exporting a vehicle assembled locally to Thailand beginning next Monday. The model exported will be a van model.

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Proton might enter SUV and MPV market

Proton Logo[ UPDATE: The first test mules of the Proton MPV spotted! ]
[ UPDATE #2: EXCLUSIVE: Initial Proton MPV exterior, interior and spec details! ]

Proton is studying the feasibility of developing an MPV and an SUV, said director of manufacturing Datuk Kamarulzaman Darus. Development will take up to 24 months if the results of the feasibility studies are positive.

In such a short period of development time, it would mean Proton would be using a platfrom from one of it’s strategic partners, which could be either Volkswagen or Mitsubishi at this period of time. It could even be Peugeot.

Some interesting facts – Peugeot and Mitsubishi has a joint venture SUV program. The Peugeot 4007 is actually a re-engineered Mitsubishi Outlander. As for the MPV, it was previously rumoured that Proton would be developing an MPV based on the Volkswagen Sharan. That’s a large MPV, not a small one like the Toyota Avanza.

Details are sketchy right now, and the projects are not even approved and could possibly not even see the light of day if the feasibility studies have negative results, but at least it is something to look forward to once the Satria Replacement Model is launched. Another model to look forward to is the Perdana replacement model, which might be based on the Mitsubishi 380, or a Volkswagen Passat. Funny, when originally announced, Proton planned to launch the Perdana replacement by the end of 2005, but I guess that plan was scrapped when talks with Volkswagen broke down. The Mitsubishi 380 sounds likelier now.

Update (25/5/2006): Proton says if the projects are given the green light, it will be developing them on their own with assistance from Lotus Engineering. This would be a good opportunity to use Lotus Engineering’s Versatile Vehicle Architecture (VVA), in which a common platform can be used to develop a variety of vehicles like SUVs, MPVs, and even coupes. The Lotus APX Aluminium Performance Crossover concept vehicle was a demonstration of the versatility of the VVA platform. Click here for more details on the Lotus Versatile Vehicle Architecture (VVA).

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Proton to buy Passat and Sharan Platforms
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Perdana Replacement Model to be a Volkswagen Passat

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Proton signs pact with Chery and Jinhua

Before this, there were rumours about Proton’s collaboration with Chery Automobiles Co Ltd and Jinhua Youngman Automobile Group Co Ltd, both Chinese automotive companies. Today, we find out that Proton is actually collaborating with both companies as strategic partners.

Proton signed a pact yesterday with Chery and it’s Malaysian distributor Alado Corp Sdn Bhd to do a feasibility study that will last until 28th August 2006 on the assembly and distribution of Chery vehicles here, as well as the assembly and distribution of Proton vehicles in China.

Proton’s collaboration with Jinhua Youngman is of a different type. Jinhua wants to sell CKD vehicles in China. Associated Press reports that this partnership is actually between Jinhua Youngman and Proton’s child company Lotus Engineering, and will involve jointly designing, developing selling completely knocked down (CKD) vehicles in China. This feasibility study will last 120 days starting yesterday.

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.

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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

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Perodua overtakes Proton in market share

Proton and Perodua has been at each other’s heels since December last year when Perodua outsold Proton in monthly sales by 99 cars. Perodua’s lead was shortlived when Proton outsold Perodua the following month by 550 cars. In February, Perodua outsold Proton again, beating Proton monthly sales figures by 763 units.

This time however, the Malaysian Automotive Association reports that Perodua’s monthly sales have topped Proton by a massive 4,284 units, making it have a market share of 44% (13,574 units) as opposed to proton’s 30.35% (9,290 units). For every Proton Savvy sold by Proton, Perodua sold 6 Perodua Myvis. The Myvi has proven to be a stunning success.

Hopefully the Proton Satria Replacement Model due to be launched before the end of this month will help with Proton’s downward sliding sales figures.

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Satria Replacement Model Prices

srm_100306_thumbnail.jpgUtusan Malaysia reports that the Proton Satria Replacement Model will be launched before the end of this month, and both 1.3 litre and 1.6 litre versions will be launched. Utusan also reports that the 1.3 litre model will be priced below RM45,000 and the 1.6 litre version will be priced below RM55,000. That’s about the same range as the Proton Gen2.

Industry sources say that the Proton Satria Replacement Model will be given a name that will reflect it’s target market – young professionals who enjoy a spirited drive.

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Car sales down in April 2006

Passanger car sales for April 2006 fell 7% from 32,926 units the same time period last year to 30,610 units this year. The Malaysian Automotive Association (MAA) said this was due to rising interest rates for hire purchase loans, uncertainty on the direction of new car prices and postponement of new car purchases due to low used car value.

Out of the total amount, national car sales were 23,326 units, a 5.4% drop from last year and non-national car sales were 7,284 units, a 10.37% drop. The new cars launched this month should boost sales a bit for June 2006.

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Naza 206 Bestari In-depth Review

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[ LATEST UPDATE: Naza has updated the Naza 206 Bestari for the 2008 model year. Click the link for more information! ]

I remember falling in love with the Peugeot 206 a few years ago when I was in college. There was this blue one parked in the college parking lot belonging to some lucky girl with generous parents, and every time I walked up to the college entrance I would take the opportunity to admire it. It’s a sporty little hatchback, and the addition of the air vents on the hoods did wonders to add to it’s sporty look. Although Peugeot has released the 207 recently, the 206 still remains in it’s portfolio, serving a different market segment. Now Malaysians have the opportunity to experience the Peugeot 206 in CKD form, with the launch of Naza’s latest car, the Naza 206 Bestari, previously known by it’s codename the Naza NX-02.

[ Click here for Naza 206 Bestari Test Drive Review ]
[Read more...]

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Toyota Yaris 1.5G and 1.5S in Malaysia

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Toyota has released specification and prices for the Toyota Yaris on their website. The Toyota Yaris comes in two trim levels, the Toyota Yaris 1.5G and the Toyota Yaris 1.5S. Let’s have a look at the specifications and most importantly price of the latest hatchback on our shores.
[Read more...]

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3 hatches, a minicar and an MPV

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This month is actually a pretty exciting month for the Malaysian automotive industry even though news seems slightly dead for the past week. But you know what they say, it is always the calmest before a storm. We have 5 car launches this month. One has already been launch, that’s the Naza Sutera. Two from Toyota, another one from Naza and hopefully Proton will be launching the Proton Satria Replacement Model this month too. Then we will be able to see all the cars in full glory at the end of the month at the KL International Motor Show 2006.

small_wish.jpgMotor Trader has a teaser on the two new CBU Toyota cars that will be revealed tonight (May 16) once the press embargo is over. From the teaser images, it’s confirmed that the two new Toyota CBUs will be the Toyota Wish and the Toyota Yaris hatchback. The Toyota Wish is an MPV competing with the Honda Stream. So far there are 1.8 litre and 2.0 grey import versions on the market, but it’s not known yet whether Toyota will be offering both models here or one of them through official channels. We’ll know tonight I guess. The Toyota Yaris hatchback is offered internationally with 1.0 litre, 1.3 litre, and 1.5 litre engines but it’s mostly likely that we will get the 1.5 litre model. From the spyshots that we’ve seen so far, I think it’s the 4-door model, which will put it in direct competition with the Honda Jazz, both being 4-door CBU hatchbacks.

As for the other Naza car, the Naza NX-02 will be launched tomorrow night (17th May 2006). More details on the Naza NX-02 after the launch, including it’s official name and specifications, and most importantly price.

Now we come to the Proton Satria Replacement Model, let’s hope it launches in time to be showcased at the KL International Motor Show. It should be very soon, anytime now! There you go, one K-car, two 4-door hatchbacks, one 2-door hatchback and an MPV for the month of May 2006. Any car I missed?

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