ProtonProton managing director Datuk Hj Syed Zainal says Proton is in very preliminary talks with Renault on a technical collaboration, which sources in the company say are centered around the supply of a diesel engine for Proton. Proton is also toying with the idea of a Laguna-based Perdana but this is just one of the many options that are being looked at including one based on the SAIC-owned Rover 75 platform.

Renault currently has various diesel engines ranging from 1.5 litres to 2.2 litres including the M9R 2.0L diesel, which comes from the same family as the MR petrol engines found locally in the Nissan Grand Livina and Nissan Sylphy.

These talks between manufacturers happen all the time and could range from a simple supplier and customer relationship to a technical collaboration, and this happens even more often these days due to the pressure on manufacturers to reduce costs, increase sales and improve profits.

Proton says an equity sale is not being considered in these talks.