A local news report in Malaysia suggests that Proton is currently in talks with PSA to develop a new car for South East Asia. The report in The Edge has been widely re-reported by news agencies across the region.
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The Edge also says that negotiations with Volkswagen have also resumed after stalling in January because Volkswagen was reportedly seeking to win some control of Proton in return for providing technology.
A consultancy firm has been appointed to advise on the type of foreign collaboration that would best suit the company, according to the magazine.
Discussions with PSA reportedly centre on the development of a car for the ASEAN region, which can be branded both as a Proton and a Peugeot or Citroen, possibly based on the small car (Peugeot 107/Citroen C1) produced in co-operation with Toyota in the Czech Republic. PSA may also take up an equity stake, although it would be unlikely to have any control over the company.
The Edge says that its sources have advised that a memorandum of understanding is likely to be signed in the next few months.
The Edge also gives details on discussions with Volkswagen, which may involve forming a new company to develop Proton models for sale in ASEAN and India. The joint venture would be 51% owned by Volkswagen and 49% by Proton. “VW has already designed a new platform to develop at least two new Proton cars, which could go into production ‘in a matter of months’ for the ASEAN market,” said the magazine.
The Edge said it expects Proton to replace its Iswara and Wira models in mid-2007 using its own technology, and that it will partner with Mitsubishi to replace the Perdana. It is difficult therefore to see how Volkswagen would slot in easily to Proton’s current business plan of having several partners supplying technology at different levels. However, a deal with Volkswagen could allow Proton to become the Skoda of south east Asia.
Proton Managing Director Syed Zainal Abidin Syed Mohd Tahir has told Reuters that Proton is expected to finalise a recovery plan and seal an alliance with a strategic partner by the end of this year.
