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Renault and Groupe PSA – previously known as PSA Peugeot Citroen – are supposedly in talks with national automaker Proton over a possible strategic partnership, The Edge reports. The publication cites industry sources familiar with the matter as saying that discussions are ongoing with the automaker’s parent, DRB-Hicom.

The sources add that there’s a possibility that a scenario might come about where the French automakers could buy into Proton. “It could happen. They could buy into Proton, but it’s not certain yet,” a source told the publication.

The news of talks with more foreign automakers comes in the wake of Proton obtaining a soft loan of RM1.5 billion from the government. The loan is said to come with a set of terms, and it has been revealed that Proton will agree to all of them.

This includes providing a convincing business model along with a strategic plan to expand its domestic and international markets. Both will be overseen by a special task force that will be set up and it will be led by Pemandu chief executive Datuk Seri Idris Jala.

The government has said it will set a timeline for Proton to implement its turnaround plan. It added that it would not interfering in the company’s operation, but will monitor the company based on the conditions set by the Ministry of Finance.

The supposed discussions with Renault and PSA add to the list of possible enterprise partners. Last June, Proton signed a memorandum of understanding (MoU) and licence agreement with Suzuki to form a long-term strategic collaboration and partnership. The collaboration will allow Proton access to Suzuki’s models, platforms, powertrain and automotive technology, while the Japanese carmaker will provide specific technical assistance for the selected products and scope.

While the deal initially only enables Proton to sell rebadged Suzukis, it does allow both companies to explore jointly developing new models, something that is a possibility, according to a report last month. It’s said that the partnership could eventually expand into a deeper research and development collaboration.