Volkswagen to Build Cars in Malaysia, will Start with the Passat from 2011

The Volkswagen Group on Tuesday signed an agreement with Malaysia's DRB Hicom auto group for local vehicle assembly as the Wolfsburg-based automaker seeks to expand its operations in Southeast Asia under the Strategy 2018 growth program. The announcement came after VW abandoned alliance talks with Malaysian state-owned carmaker Proton earlier this year for undisclosed reasons.

The one billion ringgit ($318 million) deal with DRB Hicom will see VW beginning the assembly of Passat models from the end of 2011 with an initial annual capacity of "several thousand vehicles." The German carmaker said it plans to build further models for the Malaysian market on the basis of a local full scale production in a second expansion phase from the end of 2012.

"Developing the market potential of the ASEAN region is of major significance for the Volkswagen Group’s long-term growth strategy," said Christian Klingler, Member of the Board of Management of Volkswagen AG. "We will be using existing structures and capacities at the DRB Hicom plant in Pekan to systematically extend our presence in the Malaysian market of the future."

The Malaysian joint venture will be Volkswagen's second in the Asean region, as the German company set up assembly operations in Indonesia for the production of the Touran in 2009

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Proton Rebadges Mitsubishi Lancer and Calls it Inspira. Too bad it isn't an EVO..

Proton, Malaysia's national carmaker and owners of Lotus, has taken the wraps of its latest model. No, you aren't looking at a cheesy Photoshop and this isn't an April Fools joke come six months late: this is the firm's new mid-sized Inspira sedan.

For those of you fooled by the *cough* deceptive *cough* restyling Proton has done, the Inspira (from the Bahasa Malaysia word 'Inspirasi' which means 'Inspiration') is based on the current generation Mitsubishi Lancer.

Priced at a tentative RM79,888 (US$25,654), deliveries of the Inspira will start in November. For some comparison, in Malaysia a base model Mazda3 sells for roughly RM30,000 (US$10,000) more.

Managing Director Dato' Haji Syed Zainal Abidin Syed Mohamed Tahir is very happy with the new model:

"We maintain our stance in making valuable products more affordable for Malaysians. The car's distinctive sporty personality has been further enhanced by us with the injection of the renowned Lotus DNA of excellent ride & handling, while localisation of parts has enabled us to introduce the Inspira at an affordable price. With these combined, what we have here is what we believe to be another right car, at the right price and at the right time by PROTON."

The Inspira gets all the goodies the Lancer gets including a choice of a 1.8-liter or 2.0-liter four-cylinder gasoline engines, adaptive CVT with paddle shifters, cruise control, dusk-sending headlamps, rain-sensing wipers, climate control air conditioning and (presumably) 5 star ANCAP safety.

The Inspira is the first tangible result of the new strategic alliance between Proton and Mitsubishi, though the two companies have had close ties for years. In the mid to late '90s, Proton brought three cars to Australia that were little more than rebadges of current generation Mitsubishi models. Suffice to say, only the most cash strapped of buyers saw the Wira, Satria and M21 as anything but knockoff Mitsubishis.

Carscoop will have more details and pictures as they come through.

By Tristan Hankins

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Mitsubishi and Proton Join Forces to Develop New Car

Malaysian national automaker Proton has formed an alliance with Japan's Mitsubishi for the development and production of a new car. Although details were not disclosed, it is reported that the two companies are working on a small hatchback that will enter the market after 2010. Furthermore, under the new agreement that was signed between the two companies, the Japanese carmaker will grant a non-exclusive license to the Proton to manufacture a new Mitsubishi vehicle based product. In a joint statement, the two companies said that they are also continuing "to study other mutually beneficial avenues of collaboration".

Proton Launches Dual-Fuel GEN-2 ecologic LPG Range

Malaysian automaker Proton has expanded its GEN-2 range in the U.K. with the introduction of two ‘ecoLogic’ dual fuel models that are able to run on either petrol or LPG (liquefied petroleum gas). Equipped with a 1.6-liter engine, the GEN-2 ecoLogic is available in both sedan and hatchback forms priced at £10,995 and £10,795 respectively. That means Proton is offering its dual-fuel models at the same price as their petrol equivalents, saving motorists about £1,500-£2,000 in conversion costs. According to Proton, based on an average annual mileage of 10,000 miles and the prices of petrol and LPG at £1.12 and 58p respectively, owners of the LPG models can save over £500 a year. -Continued

Proton says that the GEN-2 ecoLogic starts on petrol and then switches to LPG when it’s most efficient to do so, which is usually after about 20 seconds. The only visible addition to the interior is a switch on the centre console that shows the fuel level while on the outside, there is a second filler cap next to the petrol cap, which is matched to the exact colour of the car. As for the LPG tank, it is located in the spare wheel well.