Proton vendors to collaborate with Chinese companies for X70 production – RM170 million initial investment

Proton vendors to collaborate with Chinese companies for X70 production – RM170 million initial investment

Continuing from yesterday’s signing between Proton and the Malaysian Automotive Institute (MAI) to pool resources for vendor development, the national carmaker today organised the first signing of collaboration agreements between eight Malaysian vendors and their Chinese counterparts for the local production of the X70 SUV, including joint ventures and technical assistance between these companies.

The vendors that will partner up with each other are Delloyd Industries Malaysia and Hubei Tri-ring Auto-electric Appliance, Hicom Teck See Manufacturing Malaysia and Jiangsu Xinquan Automotive Trim, MTV Digital Technology and Tianjin Bodun Electronics, Multi-Code Electronics Industries Malaysia and SH SIIC Transportation Electric, and Delloyd Alpha and Ningbo Xinpin Auto Parts.

Also signing agreements are Delloyd Electronics and Avic Guiyang Wanjiang Aviation Electromechanical, Proreka and Ningbo Fushi Automotive Components, and Xenso Electronics and Shenzhen Jiuzhou Zhuoneng Electric. Ningbo Tuopu Vibro-acoustics Technology, a Chinese auto parts developer and manufacturer, will also be setting up shop in Malaysia on its own to produce components for Proton.

Proton vendors to collaborate with Chinese companies for X70 production – RM170 million initial investment

The agreements is set to bring an initial investment of RM170 million to Malaysia – an amount that is expected to multiply as Proton’s manufacturing volume is set to grow over the coming years – and should result in around 450 new jobs. The initial local content target for the CKD X70 is 30%. It will grow to 40% before exports to ASEAN markets start.

Proton said the signing is the first step towards building a supplier base capable of meeting the technology and quality standards of Proton’s next-generation vehicles, developed in partnership in Geely. It is also part of the company’s commitment to grow its domestic and export sales, as it turns its Tanjung Malim headquarters into a research, development and production hub for right-hand drive models within the Geely Group.

The X70 is one of three new Geely-based models set to be introduced in the near future, the others being a B-segment SUV based on the Bin Yue and an MPV based on a soon-to-be-launched three-row model, codenamed VF11. The Boyue-based X70 will be launched in November this year in fully-imported (CBU) form, before CKD local assembly kicks off next year.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • YB Albert on Oct 10, 2018 at 4:34 pm

    How come the same over charging vendors are involved? I thot Dr.Li wants to get rid of these deadwood? Just amazing…u r supposed to get 30 percent reduction in pricing for parts from these dudes?

    Like or Dislike: Thumb up 14 Thumb down 5
    • rally_fan (Member) on Oct 10, 2018 at 4:57 pm

      if im not wrong, they are still here because they have committed to giving what Proton under Dr.Li’s leadership has asked for. Vendors who didn’t want to commit to the new terms are out.

      Like or Dislike: Thumb up 16 Thumb down 1
      • Deloyd on Oct 10, 2018 at 6:56 pm

        The same vendors that supplied my Saga shitty plasticky door panels, steering wheel that won’t horn, power windows that sounds like someone slaughtering a cat and a dashboard that gives me rickety music ? ..and my Saga is less than 2 years old.

        Like or Dislike: Thumb up 6 Thumb down 5
        • kzm (Member) on Oct 10, 2018 at 8:29 pm

          It is the same vendor that supply p2 for their car oso lol..

          Like or Dislike: Thumb up 2 Thumb down 0
          • nosushi on Oct 11, 2018 at 11:21 am

            Jepunis alpat and velfaiya dashboard when hot day can even melt. Jepunis makes car much worse dashboard than plasticky saga dash

            Like or Dislike: Thumb up 3 Thumb down 5
      • Slave master on Oct 10, 2018 at 7:05 pm

        Not sure whether to clap or mourn … Seeing Malaysians obediently kowtowing to a foreigner. Same goes to those still working at Proton HQ .

        Like or Dislike: Thumb up 5 Thumb down 7
        • Henry on Oct 11, 2018 at 11:39 am

          That’s what you do when you are weak. Be strong if you want others to kowtow to you.

          Like or Dislike: Thumb up 1 Thumb down 0
    • These r the initial vendors that has reduce their prices.

      Like or Dislike: Thumb up 13 Thumb down 6
      • John Minum Teh 8X on Oct 10, 2018 at 5:28 pm

        Why all China companies only reduce the price? Looks like they want to be more competitive and give Malaysians good value for money

        Like or Dislike: Thumb up 2 Thumb down 9
    • Delloid on Oct 10, 2018 at 5:10 pm

      Faulty power windows no more.

      Like or Dislike: Thumb up 4 Thumb down 15
      • Avenger on Oct 10, 2018 at 7:51 pm

        No power window problem since 2008. Please come to the present timeline.

        Like or Dislike: Thumb up 14 Thumb down 1
  • Pilihanraya Kalah Teruk on Oct 10, 2018 at 4:45 pm

    Li Chunrong should not bother with existing Proton vendors. This is because for over 30 yrs, Proton’s vendors and suppliers have been cheating Proton with super low quality parts with super high prices.

    This is why Proton’s name became busuk and Proton went into multiple bailouts and bankruptcy.

    In actual fact, Proton cars were very good nd the concept of Proton was very good for Malaysians but because these very same suppliers busuk Proton’s name so much, Proton went down the drain.

    Li Chunrong should be careful and not allow these same crooks to busuk Geely name. Li Chunrong should source the parts either from either directly from China or ask the China manufacturers to open up factories in Malaysia for trustworthy relationship as what they are doing above.

    Ple get a fresh list of 30 Proton vendors and suppliers and do not go back to the ones that cheated Proton the past 30 years.

    Like or Dislike: Thumb up 29 Thumb down 6
    • kzm (Member) on Oct 10, 2018 at 8:30 pm

      P2 use the same vendor have no problem.

      Like or Dislike: Thumb up 2 Thumb down 1
    • Agree, actually dr Li is very rite bcos not all vendors r spoilt some they just don’t ve enough $ & technology so by joint venture will settle the problem…

      Like or Dislike: Thumb up 1 Thumb down 0
  • John Minum Teh 8X on Oct 10, 2018 at 4:57 pm

    Lucky China has come and saved Proton and is currently saving Malaysia in other sectors.

    We need more people from Mainland like Li Chunrung to not only run our GLCs but also fill up Putrajaya so that things will run faster and more efficiently.

    In less than 5 years, we will definitely be First World with such hardworking manpower

    Like or Dislike: Thumb up 6 Thumb down 10
  • Delloyd Industries Malaysia
    Hicom Teck See Manufacturing Malaysia
    MTV Digital Technology
    Multi-Code Electronics Industries Malaysia
    Delloyd Alpha
    Delloyd Electronics
    Proreka
    Xenso Electronics

    Are above vendors currently Proton’s parts supplier?
    Looks like each vendor must tied 1:1 with China vendor. Is that part of the deals?

    Like or Dislike: Thumb up 3 Thumb down 1
    • kzm (Member) on Oct 10, 2018 at 8:31 pm

      They oso p2 vendor.. go to their website n see who their customer.

      Like or Dislike: Thumb up 1 Thumb down 0
  • anonymous on Oct 10, 2018 at 5:45 pm

    Toyota Rush is coming, Proton X70 aka Geely Boyue definitely is out.

    Like or Dislike: Thumb up 0 Thumb down 20
    • What a funny comparison, the fact is X7 will beat Rush up side down!
      Toyota Rush, 100 hp, 136 Nm torque
      X7, 181 hp, 285 Nm torque

      Like or Dislike: Thumb up 16 Thumb down 1
    • Nobody was ‘rushing’ for the old Rush and neither anybody is ‘rushing’ for the new Rush. This Rush can stay in Jurassic World called Toyota showrooms.

      Like or Dislike: Thumb up 20 Thumb down 30
      • Ben Yap Bras and Panties on Oct 11, 2018 at 7:44 am

        Bro, everyone will get X70 or Toyota Rush, so nobody ever buys Honda BR-V with only two airbags, lousy Honda models quality, bad service quality in Honda Malaysia and bad assembly quality in Honda Malaysia

        Like or Dislike: Thumb up 1 Thumb down 0
      • Mario and Bros on Oct 11, 2018 at 7:47 am

        Everyone are rushing to get new Rush or Proton X70

        Like or Dislike: Thumb up 0 Thumb down 0
      • Don’t keep in Jurassic world. Sell to me 1985 Toyota price. RM25k. I take Rush

        Like or Dislike: Thumb up 0 Thumb down 0
        • Becareful what you wished for. It was a dangerous thing back then and even more dangerous now, with the lack of safety.

          Like or Dislike: Thumb up 2 Thumb down 0
    • proton junkie on Oct 11, 2018 at 12:09 pm

      Toyota Rush is a reskinned Avanza, the van with a bonnet or hood. Go figure.

      Like or Dislike: Thumb up 1 Thumb down 0
  • Paul Tan on Oct 10, 2018 at 8:29 pm

    Slave Master, Please lah, do not open ur mouth unto gear b4 sending it to ur big brain of yours What u r saying now belittle these vendors of Proton whom u hv accused to kow towing to a foreigner I presume u r jealous of these successful businessmen who dare to dream n not afraid to venture where ppl like u r afraid to venture or incapable of doing any business

    Like or Dislike: Thumb up 2 Thumb down 1
  • Same L0rr on Oct 11, 2018 at 3:16 pm

    Hope power window ok this time.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Delayed payment on Oct 11, 2018 at 10:09 pm

    Delivery on time?? Payment on time or not.. always delay only…

    Like or Dislike: Thumb up 0 Thumb down 0
 

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