Close Ad

proton vendors put pen to paper with foreign peers on multiple levels

Proton vendors put pen to paper with foreign peers on multiple levels

After upgrading its network, Proton now upgrades its vendors

Dinesh Appavu Photo

Dinesh Appavu

11 Oct 2018

Under Geely stewardship, Proton is on the fast track to upgrade its nationwide network for better service and with that almost done and dusted, the next port of call is the product quality. That can only happen with a vendor system that’s equally up to the task and they’ve taken the first steps towards achieving that by means of foreign collaboration.

A number of Proton’s vendors put their John Hancocks on collaboration agreements with their overseas counterparts in lieu of local production of the new Proton X70 SUV next year. The first batch of agreements ranged in scope from joint ventures to technical assistance and will bring in an initial investment of RM170 million to Malaysia. That amount is expected to multiply in parallel with the growth of Proton’s manufacturing volume.

Increasing the quality and standards of future Proton models jointly developed with Geely necessitated the agreements to establish a supplier base capable of meeting them. Furthermore, Proton is expected to grow sales locally and internationally as Tanjung Malim is transformed into a research and development as well as production hub for right hand drive models within the Geely Group.

Proton itself will be pumping in RM1.2 billion in plant expansion initiatives to cater to the manufacturing of new Proton models in Tanjung Malim.

“Proton would like to urge its vendors to grab this opportunity to build partnerships with their overseas counterparts in order to reach a world standard for technology advancement and quality. This will enable them to compete internationally and lead to the development of a Malaysian automotive industry vendor community that is able to compete on a global scale,” said Dato’ Seri Syed Faisal Albar, chairman of Proton.

“The participation of Malaysian vendors is a key component to achieving the long-term goals of the Company. We want Proton products that are built right here in Tanjung Malim, using parts made in Malaysia for the domestic market as well as for our export models and be able to stand comparison with competitors from around the world. This is a commitment Proton, as Malaysia’s iconic automotive brand, is making to ensure the Malaysian automotive industry continues to develop world class competencies,” he added.

Initially imported as CBU models, the X70 will be the first model jointly developed by Proton and Geely model to be manufactured at Tanjung Malim.