Proton’s search for a strategic foreign partner has courted interest from the PSA Group, Renault and Suzuki, according to Reuters. The report quotes sources familiar with the matter – who declined to be identified due to the confidential nature of the subject – as saying that parent company DRB-Hicom is looking to sell a stake in the national carmaker, despite the former denying that it will completely relinquish control.
The PSA Group’s bid appears to be the most serious of them all. “Peugeot confirms it is responding to a request for proposals initiated by Proton and its shareholder,” a PSA spokesman told the news agency, although he declined to clarify what the actual response will be, or what Proton’s proposals entailed.
Suzuki and Renault has also reportedly responded, after Proton sent proposals to nearly 20 companies earlier this year, said one source. Officials from both carmakers declined to speak on the matter.
The Request for Proposal (RFP) exercise in seeking a permanent partner that is a strategic, operational and cultural fit is part of the terms of the government’s RM1.5 billion soft loan, which it approved in April. This exercise is expected to be completed in the first quarter of 2017, and its implementation is being overseen by a task force committee formed by the government to monitor the progress of Proton’s turnaround.
For its part, DRB-Hicom has said that it is “highly committed to hold [sic] a substantial and strategic stake” in the national carmaker, and is confident of the Proton’s turnaround plan. At the launch of the new Persona last month, group CEO Datuk Seri Syed Faisal Albar said, “DRB-Hicom will continue to hold a strategic stake in Proton. We will definitely not sell 100%.”
version of the Suzuki Ertiga MPV will debut next month
But the industrial conglomerate has yet to completely rule out selling a majority stake in Proton, according to Reuters‘ sources, and may also consider selling Proton’s long-time subsidiary, British sports car manufacturer Lotus. Neither Proton nor DRB-Hicom immediately responded to requests for comment.
The deal is said to remain attractive even with Proton’s mounting losses and current sales slump, as potential suitors will be able to leverage on the company’s under-utilised manufacturing capacity.
The Shah Alam, Medium Volume Factory (MVF) and Tanjung Malim plants are capable of producing up to 400,000 cars a year, but Proton only sold 102,175 cars last year. Sources said that companies could build their cars in Proton’s facelities and export them across the burgeoning ASEAN market.
Proton has had a chequered past with all three potential partners – it has collaborated with Citroën to produce the AX-based Tiara, then used Renault engines and gearboxes on the Waja 1.8X and the Savvy. It is currently in a joint venture with Suzuki, the first fruits of which will be revealed next month in the form of a rebadged Suzuki Ertiga MPV.
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PSA comes and after a few month they will pull out with billions lost due to drb hicom actions. Then court cases and more problems. Mark my word. As long as drb involved no progress or success.
Sell sell sell! With proton in the house, how profitable you were also make lose straight. They have a nickname: leech.
Malaysians don’t realise that everything comes with a price. Do you know that for Perdana we have to pay few hundred million ringgit to Honda as royalty?
For Suzuki also, Proton has to pay few hundred million ringgit in royalty.
I wonder what our Proton engineers have been doing in Proton. For 30 years working with super high pay and yet, the 1000 over engineers cannot even invent an engine that is reliable (campro don’t talk la)
then..what are you doing here..move over your ass to Proton and prove your competency..talk is cheap!
One word: malam jumaat
Thats two words idiot
BMW will come to save the day.
No one would like to taint it hard built brand reputation with junk. BMX is possible, BMW in your dream.
Why does Proton attract partnerships from companies who are in near bankruptcy also? PSA and Suzuki are doing so badly. Both companies have ZERO money. Both Suzuki and PSA also anytime can become bankrupt.
It looks like Suzuki and PSA is trying to find a scapegoat like Proton whom they can suck dry.
Our Malaysian Proton BOD don’t care. To them, so long as can berlagak with a Mat Salleh partner, that is all that matters. They know deep inside, Proton’s RM1.5 bil will be sucked by their partners.
Never underestimate how clever the Japs and French are. Don’t forget, few hundred years ago, their small boats reaching our shores with so few people could still convince the rakyat that colonization was good and healthy for the rakyat. But in return, they took far far far more.
Yep. Agree bout this. Some more why want to sell Lotus when it said already started making some profit? What kind of business is this?
Nissan renault is about saving the company from bankcrptcy too. You dun bash pulak
Topkek
Actually in 2007, VW offered Proton to merge. If VW had merged with Proton, Proton will be making billions. But unfortunately, cabinet shot down the decision.
Here, we must analyse why cabinet shot down the decision. Our brilliant cabinet shot down the decision because the Germans did not agree to the 30% free shares tongkat policy ruling.
The Germans were shocked. They have never heard of this tongkat policy. But our Ministers said that in Malaysia, whatever company you set up, you must give 30% shares FREE.
Mat Salleh said cannot lah like this. Then cabinet shot down the deal. Imagine if Proton was to rebadge VW cars, Proton will be worth billions today!
Can even export to all over the world.
So, I wonder how Proton is going to do deals with PSA and Suzuki when we have to abide by our Tongkat policy.
In China oso got tongkat policy, must JV with them. Why no bash?
bcos the CHina market is HUGE!! HUGE!
Just like in the 80s and 90s, the people come here to JV, but now with economy sinking, guess what, the begging is reverse..wake up, its an economy game.
Car companies compete n fight for market share in China so China government can have the say. China has the upperhand in economic scale.. What msia can offer then? Even the asean auto hub is in thailand..
IN china, JV is not free. just free opportunity to work with giant foreign company.
In msia, JV is free, do nothing.
People are laughing. In 2007, a huge and rich conglomerate like VW wanted to merge with Proton. Our Proton goons showed them their middle finger cause they were so arrogant and riding high.
All the Proton bosses as well as Ministers thought we were so great. Jaguh Kampung.
Now, not just Proton but all our Ministers are BEGGING for a partner. They are crawling on their knees and literally begging.
Amazing, once so high up and so high nose
Somehow i didnt agree with u. With dieselgate issues faced by VW, i think it will somehow affect Proton as well. So i think Proton is lucky not having the partnership.
You don’t confuse VW the car with VW the group, which owns brands like audi, bentley, lambo and skoda.
Proton 508, anda mahu?
Looks like when the father is desperate for his daughter to get married,and he send her pics to all the guys around hoping someone will fall for her……..!
This is desperation stuff….all p1 management for the past 10 years should be brought to justice…
Proton has gone thro disastrous DIVORCE before.
NO marriage prospective partner will ever come near. why ? why?
Too much political interference.
Lack of direction and focus.
Only doing firefighting/damage control most of the time.
Too much self actualisation:SYIOK SENDIRI SYNDROME
Too dependent on BAILOUTS.
yOU WANNA BUY ?
Dont waste your time and money.
Megane replacing Satria Neo, then we shall see.
Why dont sell all the shares to naza I believe naza will transform the brand . And therefor NAZA CAN USE PROTON PLANT TO BUILD MORE LUXURY THEN WE CAN ENJOY CHEAPER LUXURY CAR
I dun think so….. Naza is KING OF MANIPULATION… CBU at France/Korea, hire a dismantling company over there, ship here as CKD. No comprehensive mfg activities
At least can get a CBU car at CKD price. My Rio is a CBU model among the 1st badge when Naza Kia brought them in.
Rizal, do agree with you. But no development of human capital inside the kilang. Previously production operators skilled up from welding process but now only fix clips to bumpers.
Clearly you don’t know about the auto business. All other brands doing same thing in Malaysia for ckd cars. Miti knows about it.
Wow, proton Suzuki Renault mix venture technologies combined car, but please… not another tiara or savvy…or juara.
Proton need Lotus .
Actually Lotus needs Proton. How many Lotus car sold in a year and to cover the manufacturing, R&D and their staff/ workers big fat pound sterling salary. Even with their consultancy works for others would not cover.
But Lotus don’t need Proton…..
Who say so? If not for Proton’s money Lotus long ago “gulung tikar.” Whether it is money well spent or not you will have to ask Proton.
Malaysian don’t need proton
Lotus banana leaf restaurant is better managed than proton. big crowd everyday.
Proton just bought over the suzuki distribution. .now suzuki is interested to buy proton. ..such complicated relationship
Peugeot Lotus…….. I will get one.
Since they can never do anything right , I suspect they will end up choosing Peugeot. Best choice for us would be Suzuki for sure.
So,from 20 inquiry ,only 3 interested?
Enuff to make shortlist comparison. No issues there.
Balik balik PSA…Proton, learn from you previous mistakes.
Remember Tiara, Waja 1.8, Savvy AMT!!
I rest my case!
Hello brader,
Waja 1.8 and Savvy AMT use components from Renault lah, not PSA.
Tiara (Citroen AX) is an old and basic platform, with some awkward characteristics (e.g. 3-holes rim) and costly spare parts (via-a-vis the car selling price) as most of them were sourced from Europe.
Very few ‘cheaper’ OE parts were available.
And thus, total ownership cost were more expensive compared to other Proton models at the time.
Basically, it was not an attractive proposition.
But selecting the Citroen AX as basis for Tiara was decision made by DRB.
How’s that was PSA fault?
After 31 years and spent about RM25 Billion and it is still JUST A REBADGING Industry, which any Ahmad, Ah Chong or Muthu standard 6 level education can do at their backyard.
You must be trapped too long in cave. Shame
I hope this news isn’t true. Why would DRB-HICOM sell Lotus NOW… when they’re finally starting to make a profit for the first time in 68 years ? And why sell a majority stake in Proton when clearly, they’re showing the most sales potential now with their new Persona and Saga ? Truly, it makes no sense to me.
I can accept a minority stake sale, and I can accept if Proton partners with Peugeot, Renault or Suzuki… but I can’t accept utter bullsh*t like this. This is typical of how Proton’s owners (from HICOM to Mitsubishi to Khazanah and now DRB-HICOM) have ALWAYS screwed over Proton whenever things are starting to look promising again. Why ? Just why ?
LOTUS must stay! Don’t sell as it starts making profit!
There are so much things to learn by Proton with Lotus. Remember the new engines line up? Lotus does involve too!
Sell Lotus by all means but please do not forget the few hundred million Pounds loan guaranteed by Proton. The loan was granted to Lotus during the time of Danny Bahar, supposedly for the development of five new models. The buyer must assume responsibility of this loan.
Peugeot and Proton…recipe for disaster
Peugeot + Proton…recipe for disaster
I think China very2 serious in this industry. Just watch what Geely, Great Wall, Chery-QOROS and many China players gas done in previous 3 years. They have very big market, very rich cash and also start hired talented people leader in this industry around the world. Only they lack in ride and handling + safety aspect mostly. And Proton have this advantage. I think collaboration with big local China car manufacturers better for proton future. Especially to enter China market. Just see what Geely do to Volvo. From bankruptcy company to global champion
Proton market share in Malaysia was 25% five years ago. Now it is 15% and falling towards 10%. How long before it is 0%? If you want to buy a Proton, hurry while they are still in business.
Hi I’m PSA and I’m a quality offender.
Hi I’m Proton, I’ve been an offender for more than a decade. Let’s support each other in screwing with Malaysian drivers…
Please dont touch this Proton…….becoz of the karma…..Any companies wanna JV surely lingkup at the end….becoz Proton is just the fattest ali baba nasi lemak gang.
Proton oni knows how to enjoy, wallop money and does nothing.
The catch word here is “interest”. Any buyer will be ‘interested’ to buy/form a partnership with Proton if they think they can benefit from the alliance/take over.
Judging from the many “courtship” Proton have with MMC, VW & Citroen, It will take many moons B4 anything will happen let alone partnership/takeover.