Proton, Turkish firm in talks for car assembly

by **hlk** Fri 02 Mar 2012, 20:03

KUALA LUMPUR: Proton Holdings Bhd has commenced preliminary talks with a Turkish automotive firm to assemble Proton cars in Turkey and later initiate a joint venture to develop a Turkish car.

Further negotiations could only be done after Proton was officially taken private by DRB-Hicom Bhd later in this month, said former prime minister Tun Dr Mahathir Mohamad who is Proton adviser.

"The idea is initially of course to probably assemble Proton cars there and eventually develop a Turkish car through the collaboration.

"At the moment, they are already talking to each other," he told Bernama.

He said Malaysia used to export Proton cars to Turkey but had to stop doing so due to certain circumstances.

"When we get a good partner other than the said collaboration, Malaysia should also be able to export more Proton cars to Turkey," he said.

The automotive industry in Turkey plays an important role in the
manufacturing sector of the Turkish economy.

In 2008, it produced 1.147 million motor vehicles, ranking it 6th largest producer in Europe and the 15th in the world.

Among prominent automakers in Turkey are Tofas (Turk Otomobil Fabrikasi Anonim Sirketi) that builds Fiat models and some locally-designed vehicles, and Oyak Renault Otomobil Fabrikaları.

Dr Mahathir also said the proposed free trade agreement between Malaysia and Turkey, expected to be signed this year, would really boost trade, investment and economic ties.

"Turkey can become a hub as it is centrally located. It is very near to Arab countries and Central Asian countries.

"Thus, by going to Turkey, we can have access to other countries surrounding Turkey," he said.

"Turkey has a population of 70 million, good per capita and has good purchasing power. I believe that Turkish products will find good market in Malaysia," he added.

Turkey, is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe.

It is bordered by eight countries, namely Bulgaria, Greece, Georgia, Armenia, Azerbaijan, Iran, Iraq and Syria. - Bernama