Proton, Peugeot sign letter of intent

Proton Holdings Bhd and PSA Peugeot Citroën have signed a letter of intent to study possible co-operation between the two automobile manufacturers.

“The study, which is expected to last several months, will focus on a number of diverse areas such as product development, manufacturing, quality initiatives, vendor development, contract assembly and distribution,” said a Proton statement on Sept 18.

Proton said the areas studied would focus on offering benefits to both parties in the Asean region and elsewhere.

Proton managing director Syed Zainal Abidin Syed Mohamed Tahir and PSA Peugeot Citroën chief executive officer Jean-Martin Folz signed a letter of intent on Sept 15 in Paris, France.

PSA Peugeot Citroën’s supervisory board chairman Thierry Peugeot and Proton chairman Datuk Mohammed Azlan Hashim witnessed the signing of the letter of intent.

“The study has a number of objectives with Proton’s goal being to leverage the technological expertise of a major global automobile manufacturer in areas such as product development and quality improvement while at the same time optimising the capacity utilisation of its plants,” Proton said.

For PSA Peugeot Citroën, the agreement was in line with the group's strategy of creating dedicated co-operations with other car manufacturers.

The agreement was expected to increase sales of Peugeot and Citroën vehicles in Malaysia and serve as a foundation for developing business in Asean region.