Malaysian automotive conglomerate Naza Group today set a milestone in the domestic automotive industry by signing share sale and joint venture agreements with the PSA Group. This agreement sees that Naza becomes a major player in the industry in the country. With the agreements, PSA Group now holds a majority stake in the business operations of Naza Automotive Manufacturing. The global automotive company is the second largest carmaker in Europe. Naza will focus on the distribution of the core brands: Peugeot, Citroen and DS Automobiles. In due time, distribution to other Asian countries will be in the plans.
The first and foremost plan is the Naza Automotive Manufacturing plant, where PSA Group will have a platform to accelerate development plans in the ASEAN region. This plan is known as the ‘Push to Pass’ strategic plan. The Naza automotive manufacturing plant in Gurun, State of Kedah is already producing Peugeot cars. and plans to produce the Peugeot 3008 locally are already in place. At the same time, the PSA Group intends to produce Citroen models at the plant, starting with the C5 Aircross.
PSA Group and Naza: a formidable partnership
This strategic partnership will benefit from the strong and qualitative supplier network implemented in the region. The Naza Automotive Manufacturing (NAM) plant has been operational since 2004, has a workforce of close to 450 people and boasts a 50,000-vehicle production capacity, operating in line with the highest international quality standards.
Naza and PSA Group are now strengthening their partnership, established in 2008, to develop a sustainable and profitable business in Malaysia and in the rest of the region. PSA Group’s investment in the Naza Automotive Manufacturing (NAM) plant will see the implementation of its EMP2 modular platform dedicated to C and D segments, taking the partnership and Naza’s commitment to another level.
Carlos Tavares, Chairman of the Managing Board of PSA Group, commented: “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. We are pleased to partner with Naza Corporation Holdings and continue leveraging our historical relationship.”
“We are grateful for Groupe PSA’s support and confidence in Naza Corporation Holdings as we take our longstanding partnership to greater heights. With this collaboration, there is enormous potential for Kedah to be the leading automotive manufacturing hub in Malaysia,” SM Nasarudin SM Nasimuddin, Group Executive Chairman/CEO, Naza Corporation Holdings, added.
Together, both Groupe PSA and the Naza Group are poised to achieve a stronger footing in the automotive industry within the ASEAN region.