New Mitsubishi – Proton car for Malaysia

Malaysia is Mitubishi’s next big stop. Automotive giant Mitsubishi Motors Corporation has inked a contract with Malaysia’s major automobile manufacturer Perusahaan Otomobil Nasional Sdn Bhd (PONSB) to build a new Proton hatchback car.

The two companies will jointly build a new car as part of efforts to modernize its vehicle lineup and improve component quality.

Mitsubishi and Proton are expected to build a small hatchback car that will be introduced after 2010. Further, Proton will unveil its new seven-seat multipurpose vehicle by March next and will market the car under the Mitsubishi brand in select markets.

It is believed that Mitsubishi Motors Corporation is looking at expanding its Malaysian business beyond the current export shipments of built-up cars from Japan to Kuala Lumpur. The new agreement with PONSB is likely to help the Japanese car giant take a another step ahead in its efforts at collaboration in the fields of development and production.

According to industry sources, Mitsubishi is expected to provide technical and engineering services under the product collaboration agreement with the Proton car maker. It is expected to bring in the technology for the development and production of the new Proton vehicle.

Meanwhile, it has also been said that the agreement between the two also gives the Malaysian automotive company the license to build a Mitsubishi based product in Malaysia. PONSB is targeting to work with Mitsubishi Motors Corporation to expand its model lineup as well as to raise quality levels and make more effective use of its production plant, said a source. The Malaysian carmaker has also been given a non-exclusive license to modify a Mitsubishi vehicle for sale under the Proton trademark. The alliance doesn’t include any equity shareholding, sources added.

With the two automotive companies continuing with their efforts to kick off mutually beneficial avenues of collaboration, the new agreement is likely to provide the needed impetus to such initiatives. The current deal comprises initiatives to be taken by both companies to improve both build and component quality for Proton vehicles.