General Motors said it is in discussions with Perusahaan Otomobil Nasional Bhd. (Proton) of Malaysia in a possible alliance, writes Bloomberg News (16/11/00). Citing President of General Motors’ Asia Pacific unit Rudolph Schlais in an interview on the sidelines of the Asia Pacific Economic Cooperation forum in Brunei, Bloomberg reports that some discussions have taken place, with Mr Schlais describing the Malaysian market as a ‘great opportunity’. Mr Schlais however declined to be specific.
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According to the media organisation, the Malaysian Government – which makes
all the major decisions for Proton – would have to approve the tie-up with the
world’s biggest automaker. The alliance would allow Proton to compete more effectively
on the international automotive scene, says Bloomberg.
In a bid to protect Proton, Malaysia has delayed opening the car industry from
2003 to 2005 after the 1998 recession saw vehicle sales fall by two-thirds,
says the article.
Last month, Prime Minister of Malaysia, Mahathir Mohamad, said that a US auto-manufacturer
was to buy a 30 per cent stake in the Malaysian firm. The UK firm Rover has
also been rumoured to be a possible partner for Proton.
