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Discussion Starter · #1 ·
MALAYSIA'S national car maker Proton is in talks with Chery, one of the most ambitious Chinese car companies, about a strategic alliance that would involve manufacturing in both countries.


The deal being discussed would give Chery a manufacturing platform in Malaysia and would allow Proton cars to be produced in the fast-growing Chinese car market.
Proton and Chery refused to comment on the talks. However, a senior official at Chery said the two sides were talking while another source familiar with the negotiations said they were at a relatively advanced stage, although no final agreement had been reached.
Proton said this month that it was in talks with a number of potential partners in China about a possible alliance, leaving open the prospect that it could still sign a deal with another Chinese partner. "It makes complete sense that these two companies should be talking, because it would allow Chery to produce cars in the ASEAN region and help Proton learn more about how to make low-cost cars, which is what the Chinese are really good at," said Michael Dunne, president of Automotive Resources Asia, an industry consultancy based in Shanghai

Malaysia is a member of the 10-country Association of South-East Asian Nations, or ASEAN regional grouping.
Chery is best known for its QQ mini-car, which was one of the fastest-growing models in China last year and was the subject of recently settled litigation launched by General Motors, which believed it to be a copy of its own Spark model.
However, Chery has also been the most aggressive among China's car makers in trying to enter overseas markets and is developing a series of models for the US market, where it hopes to begin selling in 2007.
Although its strategy has been to start in developing country markets such as the Middle East and Russia, it has been held back in southeast Asia by tariffs on car imports to the Asean region.
Proton's search for a Chinese partner follows the collapse of negotiations in January with Volkswagen. The company has also renewed ties with Mitsubishi of Japan, recently signing a memorandum of understanding to develop new models and share component supplies and technical support.
The Japanese company provided the base models and technology on which Proton was founded in 1983. If a deal is formalised between the two companies, it is expected to initially involve the assembly of kits of Proton models at Chery facilities in China, while kits of Chery models will be sent to Proton's Malaysian facilities to be assembledhttp://www.theaustralian.news.com.au/common/story_page/0,5744,18658172%255E36375,00.htm
 

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The next thing you know, there will be lots of Cherys looking like Protons in Chinese streets. That's what happens when you are dealing with an automotive pirate...
 

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proton is protect by malaysia government as national car maker.
but its sales in oversea is poor.
proton cannot compete with those japanese, or korean make in term of price, or quality or design. now proton best selling model wira and iswara is
rebadge from misutbishi.
proton car is not realiable, you can check with malaysia consumer,
i don't think chery will produce any proton model in china, chery had a lot of new model. in contrast proton only had 1 new model (SRM) to be launch in 2006. and proton just alliance with misutbishi, and again will rebadge misutbishi model for 2007.
the chance for proton to rebadge chery model and sales in malaysia and asean market is possible.
 

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i don't think chery will produce any proton model in china,
Proton Gen2's chassis is far more upto date than 1983 VW Golf chassis used in Fengyun, QiYun, A50, and M14.

Of course Chery is looking to obtain a more modern chassis for those models.
 

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chassis chassis chassis chassis chassis chassis chassis chassis chassis.

you know, if you hang around car dealerships listening to people deciding what car to buy, all you hear is them asking the sales people about the chassis - when was it designed, what kind of suspension setup does it have, are the wishbones unequal length, are the shocks gas or oil, does it have twin piston brake calipers, what kind of roll steer does it have, did they really spend 500m or only 450m developing it etc.

they never pay attention to the interior, the specification, the price, the colour, can I have a sunroof, can I have alloy wheels, can I have a CD player, does it look nice, can I get all my luggage and family in it, how much does the servicing cost etc.

don't get me wrong, personally I'm right into the dirty bits which is why my principle road weapon is mid engined, but I think I am in a minority category and so are you mate.
 

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Great one Torque. Still, Proton has a brand new car with which they wíll might get some marketshare in China. Ladies and gentlemen, Proton introduces the... uh... Savvy!





 

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they never pay attention to the interior, the specification, the price, the colour, can I have a sunroof, can I have alloy wheels, can I have a CD player, does it look nice, can I get all my luggage and family in it, how much does the servicing cost etc.
Interior is easy to mimic; chassis performance(handling and safety) is not.


Lotus Elise may not have much of an interior, but I will take it over Chery Cross Over(The one I agree has a very nice interior) anyday.
 

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so would I mate. you and I probably have a lot in common, aside from your anti-china prejudice. and the fact that I am into engines whilst you are the CHASSIS expert.

however, our tastes in cars do not represent the mainstream, which is why the Lotus Cars company tends to move from owner to owner - great know how there but not a great business.

nice pic though.
 

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Discussion Starter · #10 ·
Wednesday May 24, 2006

Proton, China firms study deal
By Kathy Fong

[email protected]
SHANGHAI: Proton Holdings Bhd is exploring potential agreements with two Chinese car firms that could see the national carmaker selling more of its cars in China and selling a Chinese marque in the Asean region.
The move, if it materialises, should benefit Proton as it would mean higher production of its cars and export sales. It would also give Proton entry into the world's fastest growing major car market.
In a statement to Bursa Malaysia yesterday, Proton said its subsidiary Perusahaan Otomobil Nasional Sdn Bhd entered into an understanding with Chery Automobile Co Ltd and Alado Corp Sdn Bhd. They will undertake a joint feasibility study to evaluate possibilities and opportunities for providing assembly services and distribution of vehicles of Proton and Chery brands in China, Malaysia and also in Asean.
The feasibility study would be conducted up to Aug 28.
Analysts say any agreements with Chinese firms would increase the utilisation rate of excess capacity at Proton’s Tanjung Malim plant.
Proton also said Lotus Engineering (M) Sdn Bhd, a company within the group, had entered into an understanding with Jinhua Youngman Automobile Group Co Ltd to undertake a joint feasibility study on designing, developing and selling completely knocked down (CKD) vehicles in China. This study will take 120 days.
China’s vehicle sales hit 5.76 million units last year, up 13.5% from the preceding year, according to China Association of Automobile Manufacturers. And in the first quarter this year, China sold 1.25 million passenger cars, 54% more than in the previous corresponding period.
While growth and sales numbers are staggering, the Chinese market is relatively untapped as car ownership only reached 1% of its population last year, implying the industry is looking at enormous growth potential as the middle-income group continues to expand.
Investment analysts are anticipating an annual growth rate of about 20% to 30% on the back of favourable economic scenario in China with no lower than 8% gross domestic product growth.
Proton has said the rationale for entry into China via a joint venture was to strike a relationship with growing and ambitious Chinese car companies.
Doing so would allow it to grow along with its Chinese counterparts as the latter companies extend their reach in the country and globally.
Analysts also said any agreement that would lead to more Proton cars being sold would also mean an increase in the utilisation rate of excess capacity at its Tanjung Malim plant and substantially increase its exports over the next few years.
Anhui-based Chery is among the few Chinese carmakers that sell cars under its own brands and has a vast distribution network.
Last year was a bumper one for Chery as Chinese consumers started to show a preference for smaller cars due to fuel consumption factor amid rising petrol prices. The company, which has five models, saw sales soar 118% to 189,000 units in 2005.
Should an agreement be reached with Jinhua Youngman, it would also mean a step forward for Proton to get its unit, Lotus, to manufacture cheaper Lotus cars and expand its engineering capability to the Asian region.
Jinhua Youngman, a luxury coach and truck maker, has been looking for technical partners to realise its plan to penetrate the Chinese passenger car market.
Its keenness on Lotus sports car technology is said to be a reflection of the company's interest in the upmarket segment instead of the mass market like Chery and Geely.
Despite the challenges, any firm agreement that would lift sales would also go a long way for Proton meeting its key performance indicators.
Proton is targeting to not only raise its domestic market share to 45.8% in its 2007 financial year, it is also looking at exports accounting for 8.6% of sales for that year. For its 2006 financial year, export sales contributed 5.2% of revenue.
“Strategic alliances and collaborations with current and potential partners, which form the base for Proton's future products, quality improvement and operational efficiency are part of Proton's overall strategy,'' the company said in a release to Bursa on its key performance indicators.
Although the deal is far from certain at the moment, a deal with a Chinese carmaker is seen as a coup. But it will come with some caveats. Competition in the Chinese car market is tough and operating in that country means car firms have to be fast in introducing new models and be efficient in cost management. A few Chinese carmakers are not doing well because they did not have the right product for consumers. Volkswagen is losing market share to General Motors because the former is slow in rolling out new models.
 

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fate of venture with Golden Star of Guangdong Province

Seems clear that Proton, like Alado, Lion, Petronas and other Malaysian auto-related firms all want a piece of the action in China.

But I see that nothing in these articles mentions a venture that Proton entered with Golden Star Heavy Industrial of Dongguan, Guangdong, a couple of years ago. That was said to be a $500 million investment to build the LotusElise, the Proton Waja commercial vehicles, as well as MPVs and SUVs.
Was that Proton stake divested?

Anyway there are some trade issues to work out on the Malaysian side as seen today in the China Daily report that Geely (or Chery too) will only be able to sell 20% of the CKD units that it assembles at its transplant in Malaysia, scheduled to start up in September.
 

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i want to import this car to Ukraine. Does anybody have any contacts of theire export department or some contacts with plant?

Thanks
 

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Discussion Starter · #13 ·
Chery seeks Proton as partner

Jan. 19, 2007 (China Knowledge) – Chery is eyeing a partnership with Malaysian carmaker Proton to explore the Malaysian market.
As a first step, Chery plans to commission Proton to assemble two Chery models for sale in Malaysia, said Tan Sri Cam Thiam Hong, executive chairman of Alado Corp., Chery's Malaysian distributor on Thursday. However, he did not say if Chery’s cars will be assembled under the Chery or Proton brand.
Cam added that when ongoing negotiations complete, Proton would assemble 50 to 60 Chery vehicles during the initial stage.
The Anhui-based Chery has sold 305,236 units in the Mainland, a 61% year-on-year increase. On the other hand, exports increased by 178% to a record high of 50,000 units.
According to the statistics from the China Association of Automobile Manufacturers, Chery occupied a 7.4% market share for the first half of 2006, ranking it fourth in China. The association’s secretary-general Jiang Lei expects Mainland carmakers like Chery to maintain their sales growth at between 15% and 20% in 2007. The association also estimates that sales could reach eight million units in China this year, maintaining a 15% growth rate.
 

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This Chery-Proton relationship seems to be slow moving as talks go back at least to last spring with plans for feasibility studies to be completed by August 2006.

Geely is also said to have plans to produce in Malaysia, but according to the People's Daily, the Malaysian government will limit sale of those locally produced vehicles to just 20% within that country.

What about Proton's plans to produce, among others, the LotusElise and the Waja commercial vehicles in China? Anyone have any news on that situation?


http://www.chinacarforums.com/forum/showthread.php?t=1708&highlight=proton
 
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