PROTON Holdings Bhd and Detroit Electric Holdings Ltd today announced a strategic licensing and contract assembly agreement that allows Detroit Electric to utilise PROTON platforms for its production of Pure Electric Cars (PEV).

The signing of the agreement was witnessed by the Prime Minister Dato' Seri Abdullah Ahmad Badawi at a ceremony in Putrajaya today.

Under the agreement, PROTON's wholly owned unit, Perusahaan Otomobil Nasional Bhd will license the use of two platforms - Persona and Gen.2 - to Detroit Electric, thus making way for the latter to build its full line of Pure Electric Vehicles (PEV) for the global market. The electric cars will be built in PROTON's Tanjung Malim plant.

Commenting on the collaboration, PROTON managing director Dato Syed Zainal Abidin bin Syed Mohamed Tahir said the agreement is an achievement for PROTON which has now seen its products being used by other original equipment manufacturers (OEMs) in the production of their own cars.

"We have indeed come in full circle as an automotive player, from being an end user of technologies to a full-fledged manufacturer whose products and technologies are now being sold to other automotive manufacturers.

"The project shows that PROTON can adapt well to the current challenging economic climate. As a manufacturer, we have to think differently from others and start venturing into new areas where there are potential for growth," said Dato' Syed Zainal.

"Today's agreement with PROTON will put Detroit Electric on the fast track to bring a full line of innovative, practical and affordable Pure Electric Vehicles to the global market," said Albert Lam, Detroit Electric's Chairman and Chief Executive Officer.

"We chose PROTON due to its state-of-the-art facility, commitment to research and development, cost efficiency, and stable, high quality workforce."

By 2013, Detroit Electric plans to sell more than 270,000 Pure Electric Vehicles in Europe, UK, China and the United States. The vehicles will be priced between USD 23,000 and USD 26,000 for the city range model and between USD 28,000 and USD 33,000 for the extended range model. Styling changes will distinguish Detroit Electric's vehicles from PROTON's existing line-up.

For PROTON, the arrangement could also see the company given the right to sell the PEV under Proton brand in the Asean market and potentially in the markets of member countries of the Organisation of Islamic Conference (OIC).

Today's agreement also kick starts the test and validation programme where PROTON will evaluate Detroit Electric's electric drive system for PEV. Detroit Electric will assume all warranty and liabilities for the PEV and its unique, patented electric drive train systems. PROTON will warrant the vehicle's build and standard components.

Additionally, Detroit Electric will be responsible for the homologation of the vehicles and for vehicle certification in the US and European markets, where models are targeted to be sold in the 2nd quarter of 2010.

The strength of Detroit Electric's vehicle plan is their patented Magnetic Flux Motor Technology and Motor Controller Programme. The technology, currently in pre-production prototypes, allows the PEV to achieve a range of 180km (100 plus miles) on a single charge for the city model and 320km (200 plus miles) for the extended range model.

To support this venture, Lam said Detroit Electric will invest some USD41 million (RM150 million) in Malaysia to set up two plants in the country.

Since inception, PROTON has produced more than 3 million vehicles of various models in Malaysia. It has also edged out a host of international brands when its popular Persona was named Malaysia's Best Model of the Year in the 2008 Frost & Sullivan ASEAN Automotive Awards.

"We are proud to be able to integrate our electric drive systems upon one of the best cars out of Asia. Our customers around the world will enjoy the level of quality and comfort offered by PROTON, an award-winning manufacturer", said Lam.

Our vehicles will be reliable, meet all quality and safety requirements and quite simply outperform internal combustion engine vehicles of the same class, they will be affordable as we look at the competitive market and come without the polluting carbon emissions," said Lam.

"Our target audience are those who purchase practical and affordable vehicles. This makes our products fit the pockets of a very wide audience - from professionals and executives, to mothers, students and small business owners."