Malaysian Automaker Proton Enhancing Honda Hookup
Trade and Industry Minister Mustapa Mohamed says Proton adopted this collaborative approach because it is more economical. He says developing its own car would have cost the automaker between $500 million and $2 billion.
Malaysian automaker Proton is in talks with Honda on collaborating on technology enhancement, new product lines and the sharing of platform and facilities.
The government’s Bernama news agency quotes International Trade and Industry Minister Mustapa Mohamed as telling the Dewan Rakyat (House of Representatives) such a pact would signal a long-term strategic collaboration.
“In tandem with Proton's aspiration to produce high-quality and high-technology new models, the meetings will, among others, touch on platform-sharing, which is the methodology used now in the automotive industry,” Mustapa says.
“This new development model is expected to help Proton save millions in investment and development time for a new model.”
Mustapa had been asked whether Proton is going to collaborate with Honda as a business partner in rolling out a new model, with the questioner claiming the current Proton Perdana is based completely on the eighth-generation Honda Accord.
The minister says Proton began building the Perdana in January 1995 and ended production in 2010 because of obsolete technology, inadequate safety features and difficulty in sourcing spare parts. Proton introduced a new Perdana in 2013, but only for use as a government vehicle.
Proton has built 1,000 of the 2.0L Perdanas and 700 of the 2.4L variant for use by ministers, local government and other officials.
Mustapa says the Perdana will be introduced for public sale in 2016.
Proton and Honda signed an agreement in October 2012, followed by a specific agreement for a replacement Proton Perdana model.
“Based on this agreement, development activities for a new Proton Perdana were based on the previous Honda Accord model,” Mustapa says.
Proton adopted this collaborative approach because it was a cheaper business model, he says.
“If it had gone on its own to develop and invent its own car, it would have required capital injection of between $500 million and $2 billion,” Mustapa says. “It would have entailed a longer period and incurred higher costs.
“As such, it is much cheaper to adopt the technology and facilities” of a global automaker such as Honda.
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