Proton signed MOU with Hawtai Motor

As covered by Chinese media a few month back, Proton has yesterday signed the MOU with Hawtai Motor from China. The ceremony was held in Nanjing, and aimed to strengthened Proton presence in the China market and Left Hand Drive market in general.

Both parties are evaluating the possibility for joint model development including vendor sourcing and component development with Chinese suppliers. According to Datuk Seri Haji Syed Zainal in Buletin Utama on 22 October, Proton is interested to make China a hub to assemble its LHD cars for other LHD market in addition to China market. 

With the competitive cost of manufacturing and labor in China, this is a move that could benefit both parties. Proton can capitalize on cheap manufacturing there and Hawtai can leverage on Proton rich technical capabilities in vehicle development. The move to country with low manufacturing is nothing new lately, with Toyota also switching Avanza production in Malaysia to Indonesia and even Perodua is rumoured to be studying of producing its next Perodua Viva in Indonesia.

Proton & Hawtai - rumour mill spins again

Recently, the chinese media leaked the news on potential Proton and Hawtai carmaker started to talk on potential deal where Proton top people were said to visit the Hawtai new HQ. Now, more news starts to spread again. In a nutshell:

• The deal could be big enough covering technical expertise sharing
• Hawtai visited Proton a few times to understand how Proton operates
• Proton visited Hawtai multiples times discussing on collaboration
• Framework is being put up, with various option lay on table covering market and technical joint venture
• Proton and Hawtai potentially collaborate on engine technology
• Proton to capitalize on Hawtai diesel expetise
• Hawtai to tap on Proton gasoline technology. Until now it relies on SAIC engine, with other rumoured Malaysian-based engine maker deal never seen to be able to take off
• The pair could also work on overseas CKD activities

With this potential collaboration in place, does this means that Proton will no longer work in Youngman. Some industry bird was whispering that the Lotus-Youngman collaboration is no longer in active due to some reason or another. Another impact is, will we never see MSX-resemblance SUV to be badge as Proton?