Mitsubishi Motors Corporation (MMC) and Malaysia’s major automobile manufacturer Proton Holdings Berhad (Proton) have signed a Memorandum of Understanding (MoU) for wider areas of cooperation between the two companies.


Proton has renewed its alliance with former partner Mitsubishi Motors after talks recently broke down with Volkswagen. Mitsubishi ended a 21-year partnership with Proton last year by selling off all its shares though it still supplies parts and engines to Proton.


But troubled Proton needs a partner as it struggles with falling share at home and reduced revenues.


The MoU agreement, signed on Friday February 3rd, includes cooperation in the following areas:



  • Product development of new Proton vehicles

  • Supply of components between Proton and Mitsubishi

  • Technical support for production engineering and quality control

  • Optimisation of Proton’s manufacturing facilities

The agreement is expected to help MMC expand its business in Malaysia, above its current importing business of CBU vehicles from Japan.

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Meanwhile, Proton will be able to diversify its vehicle range and accelerate the effort to achieve better quality and manufacturing process.


MMC currently supplies various levels of components, including engine and transmission, to Proton for vehicles such as the Iswara, Wira, Satria, Arena, and Perdana.


Proton’s first car, the Proton Saga, introduced in 1985, was manufactured with intensive collaboration between Proton and MMC. MMC had sold its 7.9% equity in Proton on March 9, 2004, although it continues to supply component technology and parts to Proton.