General Motors Asia Pacific Holdings LLC, a General Motors Corp. (GM) unit, said Tuesday that it entered into a joint venture with Malaysian auto distributor DRB-Hicom Bhd. (1619.KU) to sell and explore making Chevrolets for the Asean market.
Under the agreement, 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 for the Asean market,” they said in a joint statement at the venture’s launch.
The joint venture will initially oversee the sale and distribution of Chevrolet vehicles in Malaysia, the companies said.
DRB-Hicom already oversees the sale and distribution of Chevrolet vehicles in the country through a wholly-owned unit. It did not say whether the unit will continue to sell Chevrolets after the joint venture commences operations.
DRB-Hicom Group Managing Director Mohd. Khamil Jamil told reporters that the joint venture will strengthen the partnership between the companies, and will help DRB-Hicom’s goal to eventually manufacture its own cars either alone or with a partner.
The GM unit will hold a 51% stake in Hicom-Chevrolet Sdn. Bhd., while DRB-Hicom will hold the rest, according to the companies. Investment in the joint venture is expected to be not less than a total MYR50 million, Mohd. Khamil said.
Sales of the first car under the partnership, a Chevrolet Aveo Notchback, will start Wednesday. The basic model costs MYR69,888.
The companies said they expect to sell between 2,000 and 3,000 cars by year-end under the joint venture. They will also launch three to four new models by April next year, according to Mohd. Khamil.
At Tuesday’s launch, GM and DRB-Hicom also confirmed they have submitted separate bids for a stake in Malaysia’s flagship automaker Proton Holdings Bhd. (5304.KU).
Both companies declined to say how much of Proton they want to own, citing confidentiality agreements.

Tags: Chevrolet Aveo, CHevrolet for sale, Chevrolet vehicles

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