Proton seeks foreign tie-ups<\/p>\n
Agence France-Presse, Kuala Lumpur<\/p>\n
Malaysian carmaker Proton said on Wednesday it was in talks
\nwith several foreign parties about possible alliances after
\nshareholders approved a major restructuring plan to gear up for
\ncompetition under a regional free trade pact.<\/p>\n
Chief executive Mahaleel Ariff said Proton's shareholders gave
\ntheir full support to the revamp that would pave the way for the
\ncompany to enter new tie-ups after a parent company is set up
\nahead of Malaysia's entry to the Association of Southeast Asian
\nNations (ASEAN) Free Trade Area (AFTA).<\/p>\n
The new company is expected to take over Proton's listing
\nstatus by the first week of April and will streamline businesses
\ninto five core sectors: manufacturing, marketing, engineering
\nservices, property and financial services.<\/p>\n
Following the restructuring, Proton is talking with a \"couple
\nof foreign parties but unfortunately because of confidentiality,
\nwe can't name them,\" Mahaleel was quoted as saying by Bernama
\nnews agency.<\/p>\n
He said Proton would unveil a new model powered by its own
\nCampro engine early next month. The car is produced with 90
\npercent local content and this allows Proton to price it
\ncompetitively, he said.<\/p>\n
Mahaleel denied reports Proton car prices would be raised by
\nbetween two and five percent because of higher duties under a new
\nmotor tariff structure from Jan. 1.<\/p>\n
As a national carmaker, he said it was Proton's duty to
\nproduce affordable cars.<\/p>\n
He said prices of some models have fallen recently such as the
\nPerdana by about 6,000 ringgits (US$1,579) to 97,000 ringgits,
\nthe Wira by about 5,000 ringgits to 49,000 ringgits and the
\nIswara by about 3,000 ringgits to 34,000 ringgits.<\/p>\n
He said all current prices would remain unless the market
\ncondition changes.<\/p>\n
\"If market changes for the worst, we may react and if the
\nmarket changes for the better, we may raise the prices,\" he said,
\nadding Proton was in talks with the government to ensure the new
\ntax structure would not burden the public.<\/p>\n
In a statement later, Proton said it was \"currently studying
\nthe new tariff structure in depth before announcing any new
\npricing for our models.<\/p>\n
\"At this stage, no price increase has been set by Proton,\" it
\nadded.<\/p>\n
Proton, set up in 1985 as part of Malaysia's move into heavy
\nindustry, is pinning hopes on three new models to be released
\nthis year to revive sales after its market share tumbled to 49
\npercent last year from 60 percent in 2002.<\/p>\n
Proton car sales fell by a sharp 27.5 percent to 155,420 units
\nlast year.<\/p>\n
The carmaker, which has been protected by high import tariffs
\nand other advantages that will disappear under AFTA, has sought
\nanother 20 years of tariff protection but the government has kept
\nsilent on its request.<\/p>\n
Under AFTA, import tariffs for most products in the region
\nwere cut to below five percent from last year. Malaysia obtained
\na two-year reprieve for its auto industry until 2005 but it
\nrecently said it would further defer reducing duties to the
\nrequired level until 2008.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/proton-seeks-foreign-tie-ups-1447893297",
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