KUALA LUMPUR: Naza Corp Holdings and Groupe PSA have signed a share sale and a joint venture agreement, for the shared operation of the Naza Automotive Manufacturing (NAM) plant in Gurun, Kedah, as the first manufacturing hub in ASEAN for Groupe PSA.
The first vehicles to be produced at the NAM plant in 2018 for Peugeot will be the award-winning 3008, and in 2019 for Citroën, the new iconic C5 Aircross.
Prime Minister Datuk Seri Najib Tun Razak witnessed the signing.
Groupe PSA, the second largest carmaker in Europe, will have a majority stake in NAM.
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The Naza Group will have sole responsibility for the distribution of Peugeot, Citroën and DS Automobiles in the domestic market and, with Groupe PSA, will explore distribution prospects in other ASEAN markets to address the potential 680 million customers in the region.
The NAM plant has been operational since 2004, has a workforce of close to 450 people and boasts a 50,000-vehicle production capacity.
Groupe PSA’s investment in the NAM plant will see the implementation of its EMP2 modular platform dedicated to C and D segments.
Naza Group and Groupe PSA are now strengthening their partnership, established in 2008.
Carlos Tavares, chairman of Groupe PSA, said: “The creation of the ASEAN hub in Gurun, Kedah is a significant leap forward for Groupe PSA which will lead to the development of a profitable business in the region as part of our Push to Pass strategic plan.”
“With this collaboration, there is enormous potential for Kedah to be the leading automotive manufacturing hub in Malaysia,” said SM Nasarudin SM Nasimuddin, group executive chairman/CEO, Naza Corp Holdings.