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Malaysian small-car maker Perodua plans to introduce an aluminum engine to be produced at its 1.3 billion ringgit ($403 million) plant due to go into production in third-quarter 2014.
The engine will be used in Perodua’s next model launching at the same time.
“We are going to change our engine from cast-iron to aluminum to further improve the internal-combustion engine,” President and CEO Aminar Rashid Salleh tells reporters.
The government’s Bernama news agency quotes him as saying apart from achieving better fuel economy, the transition to aluminum will help Perodua reach its goal of reducing costs 20%-30% by 2015. Lower costs are a key to being competitive, Salleh says.