PSA Peugeot-Citroen and Malaysian automaker Proton are reportedly discussing a partnership, according to media reports. There are also reports that a number of other OEMs could be discussing potential partnerships with struggling Proton.
Reuters reports that PSA has said it is “responding” to an approach for a partnership deal with Proton, citing anonymous sources.
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The Reuters report also suggested that Proton sent partnership proposals to a number of carmakers earlier this year.
Proton owner DRB-Hicom has been rumoured to be interested in a possible sale of Proton – or a stake – for some years now. The company is considered by some analysts to be a retail specialist ill-equipped to manage an OEM.
The Proton business unit also includes UK-based Lotus cars, which could also be of interest to a potential buyer. Synergies between sportscar maker Lotus and Proton have been limited although there has been some engineering input from Lotus to Proton new product development in the past (eg with the ‘Gen 2’ model).
Other OEMs are also reportedly responding to Proton’s request for proposals. Suzuki and Renault are among the companies said to be responding.
Proton is Malaysia’s national carmaker, which was created under the industrialisation strategy (‘import substitution’ model) of the Malaysian government in the 1970s. Historically, it grew in its home market helped by state subsidies and protection from international competition. However, it has been in steady decline over the past decade as protection in Malaysia has been phased out under Southeast Asian (ASEAN) trade liberalisation rules.
Foreign carmakers could be attracted to Proton because of its position in the Malaysian market and manufacturing capacity in a region that is considered to have very strong growth prospects as motorisation increases.
