Proton GSR New Model

After many years of going around in circles talking to companies such as PSA Peugeot Citroen, Volkswagen and GM, Proton has finally ended up at a familiar place, Mitsubishi Motors. Proton announced to Bursa Malaysia today that it has entered into a product collaboration program with Mitsubishi Motors Corporation, Japan. The following is the scope of the product collaboration:

• A Development Agreement, to develop a new Vehicle Model for PROTON based on details of work, target specifications, job sharing and time schedule as determined by both parties (”Licensed Product”).
• A Licence Agreement, where MMC grants PROTON a non-exclusive license to use technical assistance and patents solely for the purpose of utilization of technical information for restyling, modification and improvement work, manufacturing of local parts, assembling, selling and after sales services / support of the Licensed Product to be sold under PROTON’s trademark and styling; and
• An Engineering Services Agreement, wherein MMC will provide the work and services for PROTON’s manufacturing of the Licensed Product.

StarBiz revealed today that the Mitsubishi vehicle to be provided to Proton is the new Lancer, which will be used to replace the Waja. A quick check with sources inside Proton revealed that the vehicle would pretty much be a Lancer with only minor changes to the design, even less than what Mitsubishi Taiwan has done to their version of the Lancer.

The Lancer Fortis is shown in the image above, just compare it to the original Lancer (chopped by Theophilus with Proton badges) shown below, it’s a world of a difference! So the good news is our version will likely keep the Lancer’s original aggressive looks.

The new Lancer-Waja will likely be priced at a higher price point than the current Waja CPS, but lower than the Perdana. We’ll also get the GEMA series of engines that comes with the Lancer, though it’s not clear at this moment which one. The GEMA engine is available in 1.8, 2.0 and 2.4 liter displacements.

Other proposed areas that Mitsubishi and Proton are in discussions about include the rebadging of the Persona and the 2009 Proton MPV as a Mitsubishi in certain markets and the joint development of an A-segment hatchback (a new Savvy-sized vehicle), but when contacted by this blog, sources in Proton indicated these additional projects are at best only in discussion stages only, and not something confirmed.

In fact, an A-segment hatch may not be such a good area for Proton to venture into right now, given how price sensitive the A-segment market is. Maybe later, if Proton gains enough technical know-how on how to build a car cheaply and once it has enough economies of scale to price it low yet make a sufficient profit.

The only two car manufacturers enjoying success in that market segment are Suzuki and Daihatsu, who are experts in small cars. It’s very hard to profit and with the current condition of Proton’s economies of scale, I doubt Proton could create an A-segment hatch that could have the right features, quality and price to enjoy a decent amount of success whether in Malaysia or overseas.

I doubt even accounting for the potential units sold under the Mitsubishi badge could help out there as Mitsubishi themselves do not have much successful experience in that area.

From : paultan.org

GM puts Volt engine plant on hold

Posted by: Anthony Lim

General Motors, anxiously conserving cash so it can keep operating into 2009, said on Wed it would halt construction of a plant tied to one of its most important projects while the automaker awaits a Washington bailout.

GM said it is putting the brakes on the construction of a factory in Flint, Michigan, set to make 1.4l engines for the Chevrolet Cruze and the Chevy Volt plug-in electric car.

It's just have to Volt a little longer.

It's just one more effort by GM to hold on to every penny possible as it speeds closer to the day when the 100-year-old industrial giant won't be able to pay its bills.

The company has been scaling back just about everywhere - shutting down vehicle production, ending sports sponsorships, turning off escalators and even cutting back on office supplies - to stay afloat.

GM is seeking up to US$18bil in government loans as it tries to survive the worst US auto sales environment in 26 years. It says it needs US$4bil before this year runs out.

GM board member Kent Kresa told The Associated Press last week that the company might make it into the early part of the first quarter, depending on auto sales, yet GM has several billion dollars worth of supplier payments due shortly after the first of the year, and analysts have said the company probably doesn't have the cash to pay them.

GM announced plans in Sept for the new engine plant in Flint, 50 miles northwest of Detroit, and said production would begin in 2010. But the company is delaying the purchase of big-ticket items needed to build the factory, such as structural steel, spokeswoman Sharon Basel said.

The plant's engines will extend the range of the rechargeable Volt, GM's high-profile next-generation vehicle that will be able to travel 40 miles on electricity alone. They will also power the Cruze, GM's new small car that is supposed to get around 40mpg.

Ditto the ability to Cruze around in one of these.

Basel said Volt and Cruze development will continue as scheduled and the company still plans to bring them to showrooms in 2010. The construction delay, she said, may be temporary until the company figures out its cash situation.

"Everything that involves heavy cash outlays obviously is under review," Basel said. "Our intent is to still go forward with a new facility bringing that engine to Flint."

Meanwhile, GM has held off many large expenditures, such as the steel for the Flint plant, Basel said."Those are huge cash outlays, and we don't have the cash," she said.

Basel said there is plenty of time to build the factory, install equipment and get it up and running in time to produce engines for the two new cars. The company already makes the 1.4l engine at a plant in Austria, she said, giving it another option for engines.

"We have lots of options. The construction of the new plant is not going to interrupt our plans for the Volt or Cruze," Basel said.

Work will continue as scheduled on the Lordstown, Ohio, assembly plant, which will make the Cruze starting in mid-2010, said GM spokesman Chris Lee. The company has not formally announced where the Volt will be built, although the Detroit-Hamtramck Assembly Plant was identified in the 2007 contract with the United Auto Workers. Lee said Volt production remains on schedule for later in 2010.

GM said in Sept it would invest US$370mil in the new factory, which will employ 330 hourly and salaried workers and allow the company to double its global production of smaller engines by 2011. The plant will have 300 flexible work stations that will let GM build different four-cylinder engines without retooling.

The United Auto Workers union agreed that new hires for the plant would be paid US$14 per hour, about half the wages of a current UAW worker. It also agreed to a new flexible pact with GM that lets workers do multiple jobs.

The new factory brings the prospect of more jobs to an industrial city hard hit by auto job losses. GM's nearby Flint Engine North plant closed in Aug. - AP

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