Gasgoo.com (Shanghai December 29) - Hawtai Automobile and Malaysian vehicle manufacturer Proton are expected to sign an official cooperation agreement before Chinese New Year at the earliest, auto.sina.com.cn reported. "[Negotiations regarding cooperation] have already reached a much deeper state," an unnamed Hawtai executive was quoted as saying, adding that the two sides have discussed plans to establish a new team of around 30 people in Beijing, with Hawtai planning to send nine other employees to Malaysia.

At the floor of this October's China-ASEAN Business and Investment Summit in Nanning, Guangxi, Hawtai and Proton agreed to establish a technology site with each company holding a 50 percent ownership share. The new site will be primarily responsible for researching and developing new models and key auto parts. In addition to R&D, it will also focus on engineering and technology support, quality assurance work, supplier management and other basic tasks. The two companies will also begin doing work on developing new vehicles, including new energy cars.

Among the first order of business will be beginning domestic production of the Exora minivan and the upcoming Persona R sedan (pictured) at Ordos City, Inner Mongolia. Hawtai and Proton are currently discussing how to lower costs to export the vehicles, which comply with Euro 5 emission standards, to Europe and other markets abroad. Later both companies will begin manufacturing and selling new energy vehicles.

The cooperation between Hawtai and Proton will be done according to a new business model that will not be limited to just China and Malaysia, but will include different markets from across the globe, Hou Haijing, acting vice president and director of the manufacturer's automobile division, said in an interview with auto.sina.com.cn. The two companies will use a global platform to develop new vehicle technology, procure auto parts and finally expand into new foreign markets, Mr. Hou boasted.