Japan’s Mitsubishi Motors and Malaysian car maker Proton said today they are considering expanding their tie-up in a bid to strengthen their competitiveness in growing markets in the Asia region.

The two firms said they would consider four areas of collaboration, including engine production, making Mitsubishi vehicles at Proton factories and pooling spare parts for compact cars.

They would also look at the provision of Mitsubishi’s hybrid, electric and plug-in technologies to the Malaysian maker.

The companies agreed five years ago to team up in vehicle development and component supplies. As part of the pact, they jointly produce a four-door sedan Proton model based on a Mitsubishi car.

Mitsubishi is looking to “expand its presence in the Asean market while Proton will be able to also expand its line-up and make effective use of its production facilities,” they said.

Majority owned by the Malaysian state, Proton is the biggest shareholder in British sports car manufacturer Lotus.

Mitsubishi Motors cooperates with French manufacturer Peugeot PSA, particularly in the field of electric vehicles and light trucks.

The current strength of the yen has eroded the competitiveness of Japanese firms such as Mitsubishi overseas.

- AFP