AFP reports that Malaysian national carmaker Proton will start producing its own engines this year ahead of AFTA rules that will open up the domestic auto market by 2005.
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The engine has been developed with Proton’s British engineering arm, Lotus. According to comments made in the local media by Proton executives, the ‘Campro’ engine could cut production costs for Proton by as much as 20% and save the company $260 million over the next five years. This is seen as very significant for Proton in the context of greater market liberalisation under the ASEAN Free Trade Area (AFTA).
Testing of the engine is now said to be complete and Proton is studying the best way to mass-produce the engine. The Lotus connection in developing the engine will likely be played up by Proton.
Proton, which has owned 80% of Lotus since 1997, is also developing a common chassis with its British unit to further lower production costs.
