Operations Review - ChartNexus

Operations Review
Asia
China
Performance and Operations
China is poised to be a world leader in the automotive industry. In 2009 China’s total vehicle
sales is forecasted to surpass that of the United States of America due to relatively stable
economic growth and favourable government policies.
During the year under review, PROTON’s business arrangement with China-based Jinhua
Youngman Group saw us forming a strategic business collaboration which covered four
major areas. This included the export of completely-built-up (CBU) Gen.2 and Persona for
sale through Youngman’s network in China, with the first batch of CBU being delivered in
early 2008. The collaboration also entails the supply of completely-knocked-down (CKD)
Gen.2 and Persona which commenced in April 2009.
In addition, PROTON can take advantage of China’s economies of scale and possible vendor
collaboration by localising components and engines. The business arrangement also
comprises technology transfer and technical support whereby PROTON provides technical
support for China’s localisation programme and manufacturing start-up.
Currently, PROTON cars are being sold through 80 appointed dealers throughout China
under the Europestar brand.
Prospects
Moving forward, PROTON plans to set up a
representative office in China in the second half of
2009.
Youngman plans to operate four plants in China,
namely at Anshun, Jinan, Tai An and Hangzhou. In
Hangzhou, there will be an engine plant for the
production of CamPro engines, to be operational in
October 2010.
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PROTON’s operations begin in China.