Proton has announced that they will be expanding the manufacturing of parts in Malaysia, through the signing of four new joint ventures and two technical agreements between local vendors and international companies that currently supply products to Geely.
The new localisation agreements will benefit many key areas of Proton’s upcoming models, including both internal combustion engine (ICE) and electric vehicle (EV) models, such as advanced driver assistance systems (ADAS), braking systems, headlamps, and the heating, ventilation, and air conditioning (HVAC) systems.
First, there is the joint venture between Delloyd Technology Berhad and Imotion Automotive Technology (Suzhou) Co Ltd—one of the top suppliers for ADAS systems to OEMs in China such as Geely, Zeekr, Cherry, and Volvo. Proton says this partnership will accelerate the adoption of ADAS for the upcoming AMA01, heavily rumoured to be the next-generation Saga. That should be confirmation that the upcoming all-new Proton Saga will indeed be coming with an ADAS system.
Next, a partnership for the development of braking systems, which had PEPS JV (M) Sdn Bhd signing a joint venture with Liuzhou Sanly Autoparts Co Ltd. PEPS JV will focus on component production, while Liuzhou Sanly will be in charge of modular assembly of the components—improving efficiency, cost-effectivness, and performance of braking systems for upcoming Saga and X-series models.
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As for the developments of headlamps, a joint venture was signed between JHM Consolidation Berhad and Jiangsu Dekai Auto Parts Co Ltd, the latter experts in vehicle headlamp production. The collaboration will expand JHM Consolidation’s business from a replacement equipment manufacturer (REM) to an original equipment manufacturer (OEM) that will develop and assemble headlamps for future Proton models.
The final joint venture signing was between Trillion Speed (M) Sdn Bhd and Shanghai Yinlun Heat Exchange Systems Co Ltd—a specialist in HVAC systems. Proton says the transfer of knowledge, technologies, and improved efficiency will benefit the development of future models.
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Alongside these joint ventures were the formalisation of two technical agreements: one between SHJ Interia Sdn Bhd and Changchun Fawsn Automotive Trim Co Ltd, and another between Xenso Electronics Sdn Bhd and Freetech Intelligent Systems Co Ltd.
The agreement between SHJ Interia Sdn Bhd and Changchun Fawsn Automotive Trim Co Ltd will facilitate the development of interior components with new manufacturing technologies. As Changchun Fawsn explores investment opportunities in Malaysia, they will also help SHJ establish their own R&D facility.
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The second technical agreement between Xenso Electronics Sdn Bhd and Freetech Intelligent Systems Co., Ltd. will enable the local development of ADAS systems. The collaboration will foresee the co-development of systems such as rear and side detection systems for blind spot monitoring and lane change assist.
Proton Chief Procurement Officer, Wang Huaibing, said, “With high technology components becoming an increasingly vital component in our models, it is vital for Proton to bring the development and production of these components to the local ecosystem, to gain a cost advantage as well as to upskill the capabilities of its R&D team and vendors.”
“The joint venture and technical agreements reflect our long-term commitment to manufacturing vehicles in Malaysia while also turning the country into an automotive hub by contributing to the realisation of the Automotive High Tech Valley (AHTV), that is led by the company’s shareholders,” he added.
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