GM forms Malaysian alliance

General Motors Corp has teamed with DRB-HICOM, Malaysia's largest car distributor and importer, to form a new company to distribute their new Chevrolet, the firms announced Tuesday. The world's largest carmaker will hold a 51 percent stake in the new company, HICOM-Chevrolet Sdn Bhd, while DRB-HICOM will hold 49 percent. Initial outlay will be 50 million ringgit, they said.

Mohamad Khamil Jamil, DRB-HICOM managing director, said they hope to sell 4,000 Chevrolet Aveo notchback vehicles this year, with other GM models entering the local market in phases.

Steve Carlisle, president of GM's Southeast Asia operations, said they have long-term plans to build an assembly plant in Malaysia for the local market.