Following the first signing of the collaboration between Proton’s Malaysian vendors and their overseas counterparts, the Malaysian automaker has held a second exchange of collaboration agreements, which is set to bring an initial investment of RM47 million on top of the RM170 million in initial investment from the first agreement signed in October last year.
The collaboration agreements range from technical agreements and joint ventures to 100% foreign direct investments with overseas vendors investing directly into the Malaysian economy, and the sum invested is set to grow over the years in tandem with increases in Proton’s manufacturing volume, the company said.
The vendors involved will supply parts to Proton’s manufacturing facility in Tanjung Malim, which is currently undergoing a plant expansion and is expected to be complete soon. This will roll out the first CKD version of the Proton X70 in the second half of this year.
In this second batch there are seven foreign parties, of which are four joint ventures, one technical collaboration and two 100% foreign direct investments. The four JVs are with Liuzhou Shuangfei Auto Electric Appliances Manufacturing, HSHP Auto Technology, Ningbo Rocket Automobile Parts and Suzhou Prachtig Electronic Material. The two 100% FDIs are by Plastic Omnium China and Changzhou Tenglong Auto Parts, while the technical collaboration is with EcarX (Hubei) Technology.
“Proton’s vendor development programme is gathering pace and the company has worked hard on its matchmaking activities to find the best alliances that will benefit all vendors, the local economy and Proton as well. We are convinced that by building partnerships with overseas counterparts, it will be possible for local vendors to reach a world standard for technology advancement and quality in a short time frame,” said Proton CEO Li Chunrong.
“If our vendors achieve their targets, it will enable them to compete internationally, thus leading to the development of a vendor community that will allow the Malaysian automotive industry to compete on a global scale. The participation of these vendors is also vital to Proton’s long-term goals, which ultimately is to lead the industry to develop world-class competencies,” he added.
Though the agreement is for overseas vendors working with local vendors supplying for Proton vehicles, the reverse is also a possibility. If local vendors can meet the requirements of Geely in China for supply chains in that market, they can be considered for the China market as well, said Proton deputy CEO Datuk Radzaif Mohamed.
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Why cant proton make a small car like axia…
These are the same vendors that cheated Proton the past 20 years. 6 months ago, Li Chunrong said, it was the vendors and suppliers that were overcharging Proton big time that made Proton collapse.
Li Chunrong, in 6 months, could identify this whilst our local hero CEOs could not identify this problem in 20 years
Li Chunrong said it was the vendors and suppliers that was Proton’s biggest problem and not its cars. Infact, this is true. Proton cars are great and top quality if you ask me.
So it is the SAME vendors and suppliers that are standing here proud today. They should all be EITHER changed OR they should each pay back compensation to Proton for making Proton collapse.
Really shameful to stand proud when you made Proton collapse whilst Proton enriched all the kroni Suppliers and Vendors.
Remember bailout money for Proton came from the rakyat.
Sad to say that most of the vendors and suppliers were all UMNO goons and kronies. Previous Ministers all had their hands in supplying to Proton.
Pity, own Malaysians destroyed Proton. Proton was such a good company with such great quality cars. But it was greed of a few people that brought the company down.
How you know? you work with the supplier meh?
same price. Better buy Proton Saga FL…
I don’t think they want to fight the Axia already. Not worth it. Margin too thin to fight and they will need lots of volume. Just not feasible at this point in time.
The big question, how many real work is really DONE and manufacture in Malaysia or pure JV to import parts from China.
I not surprise its only a pass through as China own PMI is falling and they wont create jobs for others..
Veli simple answer. Thru CKD importation of these parts, they will know the pricing, so can these OEM vendors price theirs lower than total cost of importing the parts but with global quality standards? Otherwise, they can take a long hard look at their inefficient operations and think how to compete with the world.
The entry of Geely also herald new Malaysia Baru fighting spirit for Proton to take on the world. 61year of dedak and tongkat bantuan did us no good, see snowflake locals struggle
I hope Li Chunrong can make sure that Proton is no more cheated again by vendors and suppliers.
We want to see our National car maker succeed. Enough of few people milking Proton at our expense.
Wow. Never knew P1 is 61 years old. Wait, arent u the same person that said P1 was born by the Brits just b4 merdeka?
I have never seen him say such a thing. Don’t post fake news john
@Aziz
Why yes you did. You said Proton was setup 10 years after KIA, which was established in 1947. So based on your logic, Proton was born way back in 1957. Kantoi much with your dupe?
Which men’s just doing a cronies pssthriuhh job to inflate the price which explain why the car won’t be competitive , it’s like instead if fully assemble in China, the China lamp and car seat manufacturer ship the lamp, car seat to Malaysia suppliers and Malaysia supplier sell to Proton locally…There is no value at all but let this middle man earning,
Same shit over the last 30 years and that’s why proton destine to die…Or with government bailed out another round for sure Geely selling back to whoever local GLC few years later when debt rise again
X70 still 110% China, parts are all from China. Only assemble in Mesia. But by Mesian or China in Mesia?
All profits for every X70 sold will go back to China. China says Thank YOU to Malaysia.
Unless X70 is CKD, then only DRB will get 50.9% profits. Until then, Proton gets nothing.
Long live China! The rich country gets even richer.
P1 going up and up and up! The continuation towards crony-less P1. Those suppliers that cannot accept VolvoGeely global standards can move to P2 or Perotiga. Current Jepun standards taboleh pakai lagi. Outdated 20 years ago.
P1, Geely, VolvoCar, VolvoTrucks, Mesidis, Lotus > all
Why is the government bailing out the company again by calling it expansion? The plant is dilapidated and it is spent solely to make it work again!
the real questions is why????
What bailing? Where is it stated in the article?
Go read the latest development on the Tanjung Malim plant upgrade. After you read please let us know here how much it costs and where is the funding coming from?
Collaboration agreement for vendors to get financing?
Was it through open tender?
Foreign direct investment dun mean they come and throw money into OEM vendors. Collaboration of R&D and sharing of IPs oso is foreign direct investment.
you’re using a big word FDI while not understanding the fundamentals of it. What foreign investment do we have with the vendors? the FDI is on Proton, which is a good strategic initiatives.
But the vendors? What R&D technology and IPs is shared? these vendors are mere contract manufacturers, which is expected to have financial issues. So why engage them when we can directly import them to keep the price lower? what is the impact of price increase for such engagement?
Just look at the X70 price today.
U wrote a lot but u din even read half the article: “there are seven foreign parties, of which are four joint ventures”.
By localising the parts, IPs r being shared. The core design philosophy is what these vendors shud grasp, much like how Waja & Gen2 has a Mitsu feel in the engine bay. As for R&D, a collaboration work between the JV certainly benefits the locals. And like I says above, if these vendor can prove to localise these parts at lower cost than impot from China, it will benefits both sides of the JV, P1, and locals. This shud have been done the 1st time but meddling by Bapak to benefits his cronies failed it. This time got no Bapak kacau, so it will be on a purely business case. Either they succeed or they can leave and join the rest of the cronies in P2 & Perotiga.
You regurgitating and not answering the questions, typical PH mentality. Your timeline of Bapak is also very confusing. Bapak left and now has returned.
What FDI are you talking about?
What IP are you talking about? Your statement is akin to stating IF Proton holds a 10% share in Iphone, we can start selling Proton Iphones as well.
Is there government funds/grants injected into Proton?
Yes / No simple.
In Malaysia, open tender or tender does not exist. Departments still follow BN style which is give to fren fren. See the type of people running Putrajaya….all dedak material
Then why you tell people to vote for them since they are the same dedak people from Atuks time? Should have went for Bapa Transformasi instead. Really regret listening to you now.
All china vendor… malaysia vendor bole bungkus n open a durian restoran beside the roads…
I dont see smiling faces in the picture….
Wat FDI?? All tongsan company
so what? 49% already sell to tongsan people, you local people still dreaming gov will help you forever.
There is a caveat. IF the local vendors CAN MEET China std…ha..ha…this tells you Malaysian make inferrior parts that is far below that of China now.