Naza Corporation Holdings and Groupe PSA announced the signing of a share sale agreement and a joint venture agreement, officially establishing shared operation of the Naza Automotive Manufacturing (NAM) plant in Gurun, Kedah, as the first manufacturing hub in ASEAN for Groupe PSA. Groupe PSA, as a global automotive player and the second largest carmaker in Europe, is confident and committed to the Malaysian and other ASEAN markets, holding majority stake in the business operations of Naza Automotive Manufacturing (NAM).
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, where the automotive equipment rate is growing.
With this agreement in effect, Groupe PSA and Naza will jointly produce Groupe PSA branded cars for Malaysia and other ASEAN markets. Further opportunities will also be explored beyond ASEAN, with a potential to contribute significantly to Malaysia’s economy.
Carlos Tavares, Chairman of the Managing Board of Groupe PSA, 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.”
Groupe PSA’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.
The NAM plant has been in operation since 2004 currently with a workforce of close to 450 people with a production capacity of 50,000 vehicles.