Petronas to make car engine

Petronas to make car engine

KUALA LUMPUR (DPA): Malaysia's state oil firm Petronas and national carmaker Proton have agreed to form a joint venture company to develop car engines and transmissions and conduct research, company officials confirmed yesterday.

Proton, in a notice to the Kuala Lumpur Stock Exchange late Tuesday, said shareholders of both companies agreed on July 9 to form the joint venture, to be known as Advanced Engine Research Sdn. Berhad.

The proposed move will be a "strategic alliance" to boost Malaysia's technical know-how in research and design for the manufacture of engines, transmissions, additives, fuel, lubricants and engineering materials, Proton said.

Proton, which was set up in 1985 to produce the first national car in a tie-up with Japan's Mitsubishi Motors, still imports its engine and transmission parts from Japan.

The government has urged Proton to acquire the technology to design and build car engines and transmission parts to cut down on expensive imports.