Published March 31, 2009

Proton inks deal to make electric cars

Licensing, contract assembly pact signed with clean technology partner

By PAULINE NG
IN KUALA LUMPUR

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PROTON Holdings and Detroit Electric Holdings (DE) plan to introduce a collaborative electric vehicle to the market by the first quarter of next year, targeting sales of 40,000 units in the first year.

DE inked a strategic licensing and contract assembly agreement with Proton yesterday, under which the Malaysian national car maker licensed DE the use of two of its vehicle platforms - the Persona and Gen 2 - for production of the electric cars which would be assembled at its plant in Tanjung Malim.

The electric vehicles would be sold in the United States and Europe as DE cars for between US$23,000 and US$33,000. Proton is likely to be given the rights to sell the vehicles under its brandname in the Asean and Organisation of Islamic Conference markets.

DE chairman and chief executive Albert Lam observed the 'dawn of green technology' was at hand with growing numbers of people embracing high tech clean technologies.

'People often say the way to predict the future is to invent it yourself,' the Hong Kong-born Mr Lam said at the event which Malaysian Prime Minister Abdullah Ahmad Badawi attended as guest of honour.

Mr Abdullah, who is stepping down as premier next month, had previously expressed his wish for Proton to take up the challenge of producing an electric vehicle, and he would have been gratified by the strategic tie-up.

By the collaboration, Proton engineers would get access to high-end technology, and its plant - currently running on one shift - would be better utilised, acknowledged Proton chief executive Syed Zainal Abidin.

Struggling to compete globally and locally where its market share has been reduced to 26 per cent from over 60 per cent in its hey-days, analysts believe Proton's future continues to be shaky despite the government's best attempts to assist it.

That does not appear to faze DE or Mr Lam who prior to founding DE, was the chief of Lotus Engineering Group - a unit of Proton - and hence familiar with its chequered history.

In a media FAQ, DE described Proton as progressive with very high standards, and one of Malaysia's largest investors having spent US$1.2 billion between 1993 and 2003.

Proton has a state-of- the-art plant where 60 per cent of its production is automated.

Key to DE's electric cars is its Magnetic Flux Motor Technology, which allows a 180 km range on a single charge for the city model and 320 km for the extended range model. Depending on the battery capacity, a fast charge could take less than half an hour.

DE plans to adapt Proton's platforms and interiors, but redesign distinctive exterior elements such as lighting, in addition to installing its patented electric drive system so that the vehicle would be homologated for different markets.

'Our target audience are those who purchase practical and affordable vehicles,' Mr Lam said, and promised the electric car would give a performance 'as good as any gasoline vehicle but with zero emissions.'