PSA Group plans to set up development base in Malaysia if selected as Proton’s partner

One of the two companies that have shown interest in Proton is the PSA Group, responsible for both Peugeot and Citroen cars.

Bernama quoted an industry source that said that the PSA Group wants to open a research and development (R&D) centre right here in Malaysia if they got selected as Proton’s foreign strategic partner (FSP).

This move will allow Proton to work hand-in-hand with the PSA Group to reach a global scale, which at the moment, is impossible for Proton to achieve alone. In order to succeed on a global scale, Proton needs the knowledge and expertise to compete on the global front.

Bernama further gave the Proton Iriz as an example, which was developed at a cost of RM600 million. This figure, however, does not include marketing or distribution costs. In order for Proton to recover its RM600 million development cost, they will need to shift 10,000 units of the Iriz at a RM60,000 price tag.

The other company that has shown interest in Proton is Geely Automobile. Geely is currently the parent company of Volvo. The Chinese company said that they are ready to collaborate with Proton with its knowledge gained from Volvo.

The only way to do this is by marrying a big auto player, two of which have submitted their bids, as of February 15, seeking Proton’s hand in marriage for what could be a long-term mutually rewarding relationship,” said the source.

Via: Bernama