Proton and Mahindra strategic alliance

Business Times reports that Mahindra & Mahindra is in talks with Proton for a possible manufacturing and marketing alliance which may involve a strategic stake transfer.

Rumours are that Proton would assemble the Mahindra Scorpio and the Mahindra Bolero for the Malaysian market. There are also options open for a joint venture between Mahindra and Proton like India’s Mahindra Renault, which assembles and markets Renault’s Logan passanger car, which is sort of like Renault’s Proton Iswara.

Is this the strategic partner that’s to be announced by the end of month or is this a new development? The Business Times source did not quote any official statement from either of Proton or Mahindra, and Mahindra officials refused to comment on the development upon contact so this might just be a rumour.

Source

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After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • StingRayINC (Member) on Apr 15, 2006 at 12:36 pm

    From my knowledge, these two companies is just like twins, yes, they do not know how to produce engine. (Campro is a total failure, if u had heard abt the Gen2 exploded in the middle of the road :)). They are just two desparate companies that failed to joint venture with big giant like the VW. Hmm don't know why Renault loves to joint venture vf these lil companies, maybe they enjoy selling their engines and gearbox rather than selling their complete products.

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  • mystvearn (Member) on Apr 15, 2006 at 2:35 pm

    Not sure twins, more like proton better off than this company. Really desperate to penetrate overseas, so any company will do.

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  • NeedGoodCar (Member) on Apr 15, 2006 at 3:30 pm

    Twin? Siamese Twin?

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  • weewee (Member) on Apr 15, 2006 at 3:46 pm

    Judging from this 'strategic alliance', i'm pretty certain that it would benefit Proton well. The Indian market is huge and all Proton needs its to introduce a low cost and fuel economy vehicle. The Savvy could be a hit there, but not to sure about the current models though. It'll be good to see proton coming out with at least 2 new models adding to their current line up.

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  • GT27 (Member) on Apr 15, 2006 at 4:13 pm

    Please don't do the strategic alliance with India's Mahindra & Mahindra, I think Mahindra & Mahindra is worst than Proton. It will be a bad move for Proton, and the Proton's image will be worsten than before.

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  • hetfield85 (Member) on Apr 15, 2006 at 4:33 pm

    Haizz, Proton need to make strategic alliance with bigger and more competitive companies.Why should Proton make an alliance with a company that worst than Proton?

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  • REDDEVIL (Member) on Apr 15, 2006 at 5:43 pm

    not really convince for the alliance.. very bad move for the proton.. should get a more reliable and strong partnership if proton want to progress further.

    lousy strategic alliance… may be good for proton to offload wiras to india.. hehe….

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  • motorhead (Member) on Apr 15, 2006 at 6:18 pm

    What??.. Mahindra???.. this is 2 steps behind plan!! If this is true, i feel sorry la for poton… thats it!! bye-bye la.. u r finish la.. wrong move man… Mahindra selling very good meh??.. hardly can see one…. what a stupid plan….

    Thx God we ve P2!!.. Looks like P2 will be my choice again…

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  • weewee (Member) on Apr 15, 2006 at 6:19 pm

    sigh..

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  • kendo (Member) on Apr 15, 2006 at 7:40 pm

    tie up next with china cheery,

    fun, impressive,

    and hopefully,

    TRULY CHEAP
    http://www.alado.com.my/web/models/QQ.html

    may be proton use it to attack P2

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  • willy (Member) on Apr 15, 2006 at 9:34 pm

    The current Protons are pretty crappy already and why the hell they want to tie up with this Indian's "car maker"? How to elevate Proton's image like that? Gila lah.

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  • Ah-Ba (Member) on Apr 15, 2006 at 9:51 pm

    Then we got a new car maker call "Proton-Mah"

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  • mystvearn (Member) on Apr 15, 2006 at 10:00 pm

    Even though step down with chinese car maker, proton should come out something like this
    http://www.alado.com.my/web/models/M14.html
    How much does tihs model cost?

    BTW, I had to LOL when I saw this pic
    http://www.alado.com.my/web/models/B13.html
    This is the first time I am seeing a car on display with the plastics still on the seats.

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  • StingRayINC (Member) on Apr 15, 2006 at 11:17 pm

    Potong and Mahin said let's die together

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  • ir_entau (Member) on Apr 16, 2006 at 1:13 am

    i dont understand why "We" must be negative in perspective….lets give them some chance….(e.g AOL Time warner two big company after merged price gone down from USD 49 or 52 and now is USD 18 ) if still proven the quality is to be at the same level, we as a consumer have the right not to buy….The key issue now is management…..How can they manage the partnership in order to have better synernergy outcome.

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  • intermilan (Member) on Apr 16, 2006 at 8:05 am

    desperado.

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  • accordmania (Member) on Apr 17, 2006 at 7:30 am

    why lah???? tTop mgmt in proton no eyes no brain one ka? stupid + stupid = stupiest, this is what will happend when they tied-up, let's see proton repeats mistakes again and again. Spoiled child will never learn

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  • honda_driver (Member) on Apr 17, 2006 at 3:46 pm

    as usual, we always jump the gun with our comments. Mahindra may be tiny in malaysia, but in india, they sell millions of mahindras. i think thats the key here, not the malaysian market.

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  • motorhead (Member) on Apr 17, 2006 at 6:30 pm

    Latest info… proton actually will marry mitsu again!!.. leak info from a poton staff…

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  • honda_driver (Member) on Apr 17, 2006 at 7:08 pm

    "proton actually will marry mitsu again!!."

    didnt proton just sign a deal with mitsu 2 months ago, and proton stated that a new proton model based on mitsu will be out next year?

    it was all over the news.

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  • pycazu (Member) on Apr 17, 2006 at 8:23 pm

    I think this could lead to disaster to both companies, my personal view. While M&M cars maybe really tough looking and solid, but i can't figure how it will be popular in M'sia, hardly. Tata must perform much better than M&M with its small K-car alike design and good FC, definitely what M'sian are looking for.

    Same to P1, their car models definitely won't go far at India too, Milo tin chassis, chi-chat sound around, freaking design, No any advantage i can foresee if they gonna market P1 cars there. I see no light, at all!

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  • motorhead (Member) on Apr 17, 2006 at 8:28 pm

    This time strategic alliance… different story… but up to u to believe.. i heard from poton ppl… i oso looking forward…

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  • Joe Ooi (Member) on Apr 17, 2006 at 9:22 pm

    This is "wristle-blower" from Proton

    "Strategic Alliance" – Nothing is true and everything is speculative. How can so many "alliances" announcement being made in very short of time? The real intention is to show the shareholder P1 do something. This is to prop up their plummeting share vale! Believe it or not! you ask "Ripley".

    "Quality campaige" – Everything is design to carry out "marketing hype" to increase sales, especially to clear 2005 stock! Believe it or not! you ask "Ripley".

    Believe it or not – Proton quality campaige not more than "lip service". There are "credible" info saying Proton want to carry out cost cutting by introduce non-ferrous material (nylon type) to replace copper type for fuel tank – Gen-2 and Satria. This material is from Euro tech with max. pressure up to 105 degree celcious but non-resistance to salty condition (seaside). Do it fragile if get hit in accident? This tech may suitable for temperate countries only! Other reason for Euro to use it is recycleable material.

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  • biggie (Member) on Apr 17, 2006 at 10:39 pm

    joe

    do you know the material property of nylon or not? then you can talk about it fragility lah

    -biggie

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  • Joe Ooi (Member) on Apr 17, 2006 at 10:58 pm

    biggie – I do not have info on the properties of Nylon, perhaps you have knowledge and can explain in greater details!

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  • motorhead (Member) on Apr 17, 2006 at 11:13 pm

    Mr Biggie.. u sound so technical la… i like u very much.. i think u r a factory towkeh.. can i have yr email??.. like to share technical stuff with u…

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  • mycar_stolen (Member) on Apr 18, 2006 at 1:25 am

    2 heads is better than one…..

    but two not so smart heads maybe..bigger flop

    p/s Proton is what bring the Msian down, Proton is like national soccer team only waste of money and waste of time only good for certain people.

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  • honda_driver (Member) on Apr 18, 2006 at 2:53 am

    joe, need to clarify a few things with what you've said..

    This is to prop up their plummeting share vale! Believe it or not! you ask “Ripley”.

    not sure what you mean by this, but somehow, its seems like proton did sign a partnership with mitsu again, with the president of mmu, and rafidah there as well. it was in the papers and tv as well. are you saying the whole signing ceremony was an elaborate hoax?

    about the fuel tank info, i would think non-ferrous materials should withstand salt better right? and since when was copper used as a material for fuel tanks? dont ask me, i'm not an engineer, thats why i'm asking.

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  • motorhead (Member) on Apr 18, 2006 at 3:27 am

    Yea, Joe.. if u dont belive me u can ask ripley.. but i asked poton ppl…

    i wud like to drive a mitsu.. even if it from proton.. technology & engineering is more important… wish Lancer wil be out soon, to replace our old wira… hehehe…

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  • Joe Ooi (Member) on Apr 18, 2006 at 5:37 pm

    Honda_driver – This info from "wristle-blower" which I also can't substantiate. VW had gone through same process, at the end, the deal also not materialize. If Proton really have partnership with Mits, why after the signing of partnership, there are still many press statements by P1 with so many auto parties from Dragonland and India? The sensible scenario is they should stop make press announcement on partnership and come out with new model with Mits! As Motorhead said," … wish Lancer wil be out soon, to replace our old wira… hehehe… "

    About the fuel tank material, this is info from "wristle-blower", to be frank, I myself do not have any info as to what material currently they use to make fuel tank as well as the mentioned non-ferrous material. The message above is purely I act as "messager" only. Actually I am asking just like you, hope someone with the info can come forward to explain in greater details.

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  • kunalt (Member) on Apr 19, 2006 at 11:53 am

    The marriage between mahindra and proton makes sense as of now because it'll help proton expand an set up a shop in India. It is not feasible for any car manufacturer to import cars directly into India because there is a heavy import duty. Imagine, buying a proton for twice the price; would you purchase one? The indian market is very competitive and huge. We have really strict emission norms out here and thats one of the reasons why the Chinese aren't able to sell their products here. The cars need to be tested by an automotive body for fitness and various other tests before it is approved for India. Indians are very cautious about the cars they purchase, and are brand conscious, so a strategic alliance with Mahindra will help proton boost their sales. Besides, Mahindra makes pretty good diesel engines too, I am not sure whether proton makes diesels; please enlighten me.

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  • Joe Ooi (Member) on Apr 19, 2006 at 10:34 pm

    Currently Proton make petrol Campro engine and no other.

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  • honda_driver (Member) on Apr 20, 2006 at 3:10 pm

    well joe, i dont know about "strategic alliances" that proton have done or plan to do, but i do know that no road car in malaysia today uses Copper as a material for fuel tanks. As for mitsu, i only know what i read in the news, and the news guys have clearly quoted proton MD as saying a new proton/mitsu model will be out by early next year and not now, or tommorow, or next week.

    if you claim that this is info from a proton "whistleblower", he is definitely giving you some pretty silly info or he is extremely ill-informed. Maybe you should verify the info before posting it up in future. As we all know, just because its on TV or the internet, doesnt make it true.

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