Proton Gen.2 To Be Assembled In Iran

TEHRAN, Dec 23 (Bernama) -- Proton Holdings Bhd's Gen.2 model will be assembled in Iran from April 2009 in a deal with a local partner.

Proton and Zagross Khodro inked an agreement here Tuesday for the supply of automotive parts that allows the latter to assemble the Gen.2 through a completely-knocked-down (CKD) arrangement at its assembly plant in Borujerd city, southwest of Iran.

The signing was witnessed by Iranian President Mahmoud Ahmadinejad and Malaysia's Prime Minister Datuk Seri Abdullah Ahmad Badawi who is on a four-day official visit to Iran.

Currently, Proton is exporting completely-built-up (CBU) Gen.2 to this country of over 70 million people.

This is the third of a series of agreements aimed at enabling Zagross, Proton's sole distributor in Iran, to assemble the Gen.2.

Signing the dotted line for Proton was its managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir while Zagross was represented by its managing director, Siroos Gholami.

Also present were Proton chairman Datuk Mohammed Azlan Hashim and Zagross chairman Dariush Gholami.

The previous two agreements were on licensing and technical assistance and purchase of equipment.

"This agreement signifies Proton's continued commitment to the vast Iranian market and is part of its overall export market strategy," said Mohammed Azlan.

He also disclosed that Proton, Malaysia's first car manufacturer, would open an office in Iran in March 2009.

With the CKD operation in Iran, Proton will be able to price its cars more competitively in the local market and more importantly improve on its after-sales service in the country, the company said in a statement.

The collaboration between Proton and Zagross began in 2001 when the latter became the sole assembler and distributor of the Proton Wira in this Islamic republic.

Zagross had previously imported CBU units of Proton cars into Iran, a market viewed as a potential for Proton in view of its large population.

Established in 1996, Zagross is the largest private automotive company in Iran with the capability of selling 50,000 cars a year.

Source : BERNAMA