Hottest Online News Portal

NAM Helps Develop A Dynamic Malaysian Motor Vehicle Sector

in Top News

PUTRAJAYA — The partnership between Naza Corp Holdings (Naza Group) and Groupe PSA of France in Naza Automative Manufacturing (NAM) plant in Gurun, Kedah will help develop a dynamic motor vehicle industry in Malaysia, said Prime Minister Datuk Seri Najib Tun Razak.

Najib said the partnership would see the introduction of new models with local vendors upgrading their skills, leading to knock-on effects which would benefit the local industries and communities.

He said it would turn NAM into a car manufacturing hub for Groupe PSA to expand its presence in the ASEAN market.

“NAM will become the export hub for regional countries and beyond. The volume of cars NAM is forecast to produce in 2019 is 18,000 units with another 21,000 units in 2020, generating revenues of RM724 million and RM967 million respectively.

“There will be a boost to the economy here as this partnership is expected to lead to the increase in the number of local vendors by 70 over the next five years and create an additional 1,200 jobs in Kedah,” he said in his speech before witnessing the signing ceremony between Naza Group and Groupe PSA of France here today.

The signing of the share sales agreement and a joint-venture agreement between Naza Group and Groupe PSA is for the establishment of shared operation of the NAM plant.

NAM will henceforth be producing cars, including world-renowed brands, such as Peugeot, Citroen, DS, Opel and Vauxhall.

Also present at the ceremony were Kedah Menteri Besar, Datuk Seri Ahmad Bashah Md Hanipah, Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed, Naza Group Chief Executive Officer (CEO), S.M. Nasarudin S.M. Nasimuddin, PSA Group’s Executive Vice-President (China and Southeast Asia), Carlos Gomes and Chief Secretary to the Government, Tan Sri Dr Ali Hamsa.

Groupe PSA is the second largest car manufacturer in Europe. It has a presence in 160 countries, over 170,000 employees and sold more than 3.5 million vehicles last year.

Naza Group’s plant in Gurun, which assembles Peugeot and Kia cars, has an annual capacity to produce 50,000 vehicles a year.

Currently, the 56-hectare plant produces Peugeot and Kia vehicles for the Malaysian market as well as for export.

The plant, which comprises an assembly plant, two-storey office, a test track, lots for vendors and supplies, staff accommodation as well as recreation facilities, was set up in May 2004.

The Naza Group will have sole responsibility for the distribution of Peugeot, Citroen and DS Automobiles in the domestic markets and Groupe PSA will explore distribution prospects in other ASEAN markets to address the potential 680 million customers in the region.

Meanwhile, Naza Group CEO of the Automotive Group, Datuk Samson Anand George, said Groupe PSA would be acquire a 56 per cent stake in NAM.

On the amount of the investment, he said: “We are not privy to say that at the moment. It is substantial.”

Samson said Naza Group aimed to grow the European cars to 10 per cent this year.

“Our next target is 18 per cent in the next three years with the new model range and new products from Groupe PSA,” he told reporters after the signing ceremony here today.

Chairman of the Managing Board of Groupe PSA, Carlos Tavares, said NAM would produce its first vehicles this year with Peugeot 3008 and Citroen C5 Aircross in 2019.

“The creation of the ASEAN hub in Gurun, Kedah is a significant leap forward for the group which will lead to the development of a profitable business in the region as part of our Push to Pass strategic plan. We are pleased to partner with Naza Group and continue leveraging our historical relationship,” he said.

He said Groupe PSA aimed to double its volume in the region.

Meanwhile, SM Nasarudin said, with the collaboration, there were enormous potentials for Kedah to be the leading motor vehicle manufacturing hub in the country.

“This will further add value to local car industry,” he said. — BERNAMA

Latest from Top News

Go to Top