Proton showroom

It has been reported that Proton is in negotiations with Oriental Holdings for the latter to set up a Proton dealership business. Citing industry sources, The Edge reported over the weekend that talks between Proton Holdings and Oriental have been underway for some time now and that an agreement is close at hand.

It’s also understood that Oriental is reviewing its Hyundai dealership business with Sime Darby, with the arrangement reportedly not going very well for Oriental. Oriental currently operates Hyundai, Honda and Mitsubishi dealerships.

An analyst report projects a positive outlook on the potential Proton/Oriental partnership. The report states that with Proton lacking big 3S centres, Oriental – with its financial strength and industry experience – would be a reliable partner in developing Proton’s 3S dealerships in the most efficient way, and that the venture would very much fit the automaker’s long-term strategy.

Last week, Proton announced a new dealership expansion programme – working through its subsidiary Proton Edar, the Malaysian carmaker has extended an invitation to interested external parties to invest in new Proton 3S (sales, service and spare parts) dealerships nationwide.