Daihatsu eyes Perodua stake

Daihatsu eyes Perodua stake

KUALA LUMPUR (AFP): Japan's Daihatsu group is in talks with its Malaysian partner Perodua to increase its 25 percent stake in the second national carmaker, reports said on Friday.

Prime Minister Mahathir Mohamad has confirmed negotiations were continuing between Daihatsu and Perusahaan Otomobil Kedua Sdn. Bhd. (Perodua) but said nothing had been finalized.

The premier was quoted by the New Straits Times as saying that the government would only allow the Japanese company a majority stake in the local production of cars for the export market.

"There have been negotiations and nothing has been finalized. Of course we want to retain that part of Perodua that is the manufacturing of cars for the local market," he said.

"If they (Daihatsu) want to have a share or even a majority share in the production of Perodua cars for the ASEAN (Association of Southeast Asian Nations) or other export markets, we have no objection to that."

Daihatsu Motor Co. Ltd. holds a 20 percent stake in Perodua and a further five percent through its local unit Daihatsu (M) Sdn. Bhd. Japan's Mitsui Co. Ltd. also has seven percent equity.