Proton Reaches Collaborative Agreement With Honda

Malaysian auto maker Proton reaches agreement on a collaboration with Japan’s Honda, but is not disclosing details.

“This is Honda's first collaborative agreement with another original equipment manufacturer, and it would like to keep thing under wraps, as details are trade secrets,” Proton Executive Chairman Khamil Jamil tells reporters during the launch of Proton’s Preve midsize sedan in Indonesia.

Malaysia’s The Star newspaper reports Khamil says the market should expect the first variant of the agreement in a couple of months.

The newspaper previously reported the joint venture would see Proton using the Honda Accord chassis for a new product to succeed the Malaysian auto maker’s Perdana replacement model.

Deputy CEO Lukman Ibrahim says, meanwhile, that Proton is making progress in its vendor rationalization program aimed at reducing its costs 30% over five years.

“We have reduced our vendors from 240 to 213, and those who don't meet our criteria will be withdrawn from our vendor list,” he says.

Lukman says Proton is on track with its 5-year business plan for exporting to the Association of Southeast Asian Nations, China, the Middle East and North Africa. It also is considering shipping its Preve and Exora models to the U.K.

“Proton will continue efforts to develop the global small car codenamed the P230A,” he says. “We will also continue research and development work on the energy-efficient vehicle concept, with the first prototype scheduled to be unveiled next year.”