Proton is considering an alliance with Mitsubishi Motors, its former partner, Proton adviser and former Prime Minister Mahathir Mohamad reportedly said on Thursday.
Go deeper with GlobalData
”They (Proton) wrote to me saying that they want to (form an alliance),” Mahathir told reporters, according to Kyodo News.
However, asked if the alliance involves Mitsubishi taking up a stake again in Proton, Mahathir said he did not know.
On Tuesday, Mitsubishi Motors President Osamu Masuko reportedly said in Tokyo that his company is open to talks with Proton, but added that Proton has not made any such request, the Japanese news agency noted.
Masuko reportedly ruled out the possibility of a capital alliance.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataKyodo noted that both Mitsubishi Motors and trading house Mitsubishi Corp. used to be major technical partners and shareholders of Proton, holding a combined 15.8% stake.
However, driven by its own financial difficulties, the Japanese carmaker ended the 21-year partnership last year by selling off all its shares. But Mitsubishi still supplies parts to Proton.
Kyodo News said talk of Proton and Mitsubishi reviving their ties has gained ground recently after Volkswagen cancelled its plan for a tie-up with Proton after over a year of negotiations.
Volkswagen had been seen as the lifeline for Proton’s future.
Proton’s new managing director, Syed Zainal Abidin Syed Mohamed Tahir, was quoted by the Star newspaper Thursday as saying that the company had written to Volkswagen indicating that it is still interested in working with Volkswagen and for the latter to take up a stake in Proton, Kyodo said.
”We are still interested in forging a relationship with Volkswagen. We are hoping for a positive response from them,” Syed Zainal was quoted as saying.
Kyodo noted that Volkswagen announced early this month that talks with Proton had broken down. Proton later confirmed that the dispute was over Volkswagen’s insistence of gaining a controlling share.
This was when all eyes turned to Mitsubishi.
”If there is a need to extend that relationship (beyond supplying auto parts), we would look at it,” Syed Zainal said, according to Kyodo News, citing the Star.
