GM, Malaysian firm to make Chevrolets
 

A unit of US automaker General Motors Corp tied up with Malaysian conglomerate DRB-HICOM Bhd to explore making Chevrolet cars for South-east Asia's booming market.

Under the pact, the companies will "explore the establishment of a local vehicle assembly program as well as a manufacturing hub for the production of Chevrolet vehicles, parts and accessories" to be sold in the 10 countries making up the Association of South-east Asian Nations, they said in a joint statement.

General Motors Asia Pacific Holdings LLC will hold a 51 per cent stake and DRB-HICOM the remaining 49 per cent in the joint venture,

which is expected to begin operations in October, the statement said.

"As the largest market for passenger cars in South-east Asia and a key member of the ASEAN community, Malaysia is a country in which GM believes we must have a major presence," said Steve Carlisle, president of GM's South-east Asia operations.

No further details were available. Company officials couldn't be immediately reached for comments.

DRB-HICOM is already the distributor of GM vehicles in Malaysia.

After signing the joint venture, the two companies launched the Chevrolet Aveo, a 1400cc sedan aimed at capturing the young executive market. A basic model costs 69,888 ringgit ($A24,523.18).

General Motors has expressed interest in an alliance with Malaysian national car maker Proton, which is actively in talks with Germany's Volkswagen AG as it searches for a foreign partner to turn it around.

Volkswagen is seen as the front-runner in the Proton bid, but some officials have previously said GM may partner DRB-HICOM to boost its chances.

Gaining a stake in Proton could help GM - which already has operations in Thailand, South Korea, India and China - consolidate its position as a key player in Asia's booming automotive market,

analysts have said.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand, Singapore and Vietnam and comprises a community of 550 million people.

Source: [url=http://www.smh.com.au/news/Business/GM-Malaysian-firm-to-make-Chevrolets/2007/08/31/1188067338936.html]Sydney Morning Herald[/url]