PSA Group and China’s Zhejiang Geely Holding Group have reportedly submitted bids to buy a stake in loss-making Proton.
Bloomberg reported that bids are being evaluated and clarified, with negotiations taking place privately.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
A PSA spokesman told Bloomberg that the company is “still in the negotiation process and wishes to go further with Proton.”
Current owner DRB-Hicom last year began a systematic search for a foreign strategic partner for Proton, following many years of underperformance by the national carmaker as it struggled with increasingly demanding R&D requirements and ever rising competition in its home market.
Proton’s exports also have fallen over the years, with the company unable to keep up with increasingly stringent emissions regulations in some key overseas markets and growing competition from other Asian automakers.
Geely is thought to be interested in Proton-owned Lotus Cars, known for its lightweight chassis technology. PSA, analysts suggest, is interested in Proton’s production capacity in the heart of the high-growth ASEAN region.
French daily Les Echos has reported PSA made a firm offer for Proton.
More: Will Geely take control of Proton?
