Peugeot Partners with NAZA for Compact Car

French manufacturer Peugeot announced today it has signed a letter of intent with NAZA, a Malaysian car manufacturer, for the production of a compact car in the country. The vehicle will be part of the C segment and will be marketed in Malaysia as a Peugeot.

Peugeot plans a production run of 70,000 units of the new model, which will also be sold in the Association of South East Asiatic Nations (ASEAN) region, in Thailand, Indonesia, in both left- and right-hand drive markets. Production of the new model will be handled by the NAZA plant in Gurun starting the second semester of 2011.

“Automobiles Peugeot reaffirms its objectives for sustainable international expansion, and notably within a region of the world with exceptional potential, thanks in part to its cooperation with one of the most important manufacturers in the automobile industry present within the ASEAN,” the French manufacturer says in a release.

Unfortunately, no details regarding the project have yet been announced. In Malaysia, Peugeot markets and assembles the 206 hatchback, with the 207 to be added to the local production cue this year.

Peugeot regards the ASEAN region as the main one in which to look for further expansion. Already accounting for 42 percent of the carmaker's market outside Europe, ASEAN is currently experiencing an economic boom, with the automotive industry feeling more at home here than anywhere else in the world.

“This new stage will continue to reinforce the cooperation between Automobiles Peugeot and the Malaysian manufacturer,” adds the French carmaker.