PSA Peugeot Citroën and Proton plan to form a partnership

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on 09/18/2006

PSA Peugeot Citroën CEO Jean-Martin Folz and Proton Managing Director Syed Zainal Abidin Bin Syed Mohamed Tahir have signed a Letter of Intent in Paris, France, to study possible co-operation between the two automobile manufacturers. The signing was witnessed by Thierry Peugeot, Chairman of PSA Peugeot Citroën’s Supervisory Board, and by Proton Chairman Dato’ Mohammed Azlan bin Hashim. 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. The areas being studied will focus on offering benefits to both parties in the ASEAN region and elsewhere.

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.

For PSA Peugeot Citroën, the agreement is expected to increase sales of Peugeot and Citroën vehicles in Malaysia and serve as a foundation for developing business in the ASEAN region. It is in line with the Group's strategy of creating dedicated co-operations with other car manufacturers.