'Perodua eyes pact with Toyota'

'Perodua eyes pact with Toyota'

KUALA LUMPUR: Malaysia's second national carmaker Perodua is
eying an assembling pact with Japan's Toyota Motor Co. in a bid
to strengthen its foothold ahead of market opening in 2005, a
report said on Saturday.

Japanese minicar maker Daihatsu Motor Co. Ltd., which is a
subsidiary of Toyota, owns 51 percent stake in Perusahaan
Otomobil Kedua Sdn. Bhd. (Perodua).

"Perodua is manufactured by Daihatsu, which in turn is owned
by Toyota. So it is a natural progression," an industry source
told The Star, saying negotiations were underway.

The source said the contract may involve vehicle assembly and
painting, targeted to start by middle of next year but only for
Toyota vehicles for sale in the domestic market.

Analysts said the contract was likely to involve only a small
number of cars, possibly about 10,000 units, as Perodua's factory
in Rawang in central Selangor state was running at near full
capacity. -- AFP