Proton has announced (through a filing with Bursa Malaysia) that it has signed a Development Agreement to develop a new model with Mitsubishi Motors Corporation (MMC), its old partner who helped start up the company and provided the first model platforms. Complementary agreements have also been signed relating to the restyling and modification of the new model as well as manufacturing activities for it.
This confirms rumours that a Mitsubishi-based model is likely to feature among Proton’s future products although the Australian-market Mitsubishi 380 that had been identified earlier, supposedly to replace the Perdana, is definitely not the model. It was deemed too big, especially the powerplant, for this market and was also a failure in Australia.
Instead, the strongest rumours are that the Lancer platform is the one which will be the basis of the new Proton model as it seems to be the only one in the Mitsubishi range which would be suited as a Perdana replacement, if not the Waja. However, it is the 14-year old Perdana that needs a brand new replacement more urgently (the earlier hope of cloning a VW was dashed after the Proton-VW talks ended abruptly) whereas the Waja platform could be re-engineered for a second generation. The flagship Chancellor, a long-wheelbase Waja, which is mainly used by government officials is rather dated too.
If it is a Lancer, then it might be a long wheelbase version although the Licensing Agreement with MMC does stipulate that it will be non-exclusive which means that while the design can be exclusive to Proton, MMC could also use the same jointly-developed model for itself. In fact, this type of collaboration is something which was already being explored 8 years ago with the ill-fated Juara. At that time, the expectation was that Proton would initially clone the mini-MPV model and then progressively re-engineer it into a new generation, whereupon MMC would then buy units manufactured by Proton and put the Mitsubishi badge on them. However, the failure of the Juara in the market ended that venture. Interestingly, MMC did later take a small MPV from another manufacturer; in Indonesia, it buys the Suzuki APV and sells it under its own brand.
The choice of a Lancer could have implications for Mitsubishi Motors Malaysia (MMM), which is a subsidiary of MMC. While the Lancer is not its bread-and-butter model (the Triton is), the availability of a Proton variant - which would be much cheaper - could reduce demand for the Lancer in future. Thus, it seems more likely that a long-wheelbase variant will be a better move for both manufacturers as the Lancer can continue to be sold by MMM and the longer-wheelbase variant sold as a Perdana by Proton.
No time-frame has been mentioned for the new model launch but given that it would be a ‘cloning exercise’ on a ready-made platform, the development period could be very fast as it would involve mainly bodyshell design. It could turn out to be something similar looking to the Lancer (or whatever model is chosen), the way the original Saga looked like the 1984 Mitsubishi Lancer or it could look very different, like the Waja which is known to sit on a platform that was used for the 1995 Mitsubishi Carisma/Volvo S40.
MMC is certainly keen to collaborate with Proton as it wants to move beyond a CBU-only business in Malaysia. Its past relationship was certainly a successful one, at least till Proton decided it was big enough to stand on its own and ‘suggested’ to MMC that its presence was no longer needed in 2004.
Commenting on the relationship between MMC and Proton during an informal dinner with Malaysian journalists in KL on Thursday night, MMC President Osamu Masuko said that there is a long history between the two companies and Proton engineers are very familiar with Mitsubishi’s philosophy, approach and engineering so there is a good basis to work together. He said there are also close business ties since MMC supplies many parts, transmissions and V6 engines to Proton and the Japanese carmaker is keen to explore further avenues of collaboration.
Mr Masuko confirmed that the earlier Memorandum of Understanding (MoU) signed in February 2006 had expired last year but the two companies still remained in contact to see what else could be done to work together and presumably, this new development is the result of those extended discussions. It also seems that some elements of the earlier MoU have been retained in a new MoU regarding MMC’s assistance to ‘improve both build and component quality for Proton vehicles’.
In Proton’s filing with Bursa, there is also mention of ‘contract assembly’ on which both companies will conduct feasibility studies over the next 3 months. Mr Masuko told journalists that MMC will start Lancer assembly to ASEAN and suggested that this could be done in Thailand but it is entirely possible that the model could also be assembled here at Proton’s Tg. Malim plant which has lots of spare capacity.
Having MMC as a strategic partner suits Proton well since the Malaysian carmaker has been resisting having equity participation by other carmakers, and from Mr Masuko’s remarks, MMC also has no strong desire to get into equity participation. It was in serious financial difficulties in 2005 after Daimler-Chrysler withdrew from its partnership (‘divorced!’, Mr Masuko quickly corrected when this writer tried to use the ‘diplomatic’ phrase) and nearly had to close down its biggest plant. But today, it is much healthier and has an optimistic growth plan charted up till 2010. So it would be happy to work with its old friend in Malaysia in what can be a win-win situation without corporate entanglements.
Article source : Motortrader.com.my
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