GM keen on stake in Proton

GM keen on stake in Proton

KUALA LUMPUR (AFP): U.S.-based auto giant General Motors Corp.
is keen to take a stake in Malaysian carmaker Perusahaan Otomobil
Nasional Bhd. (Proton), a newspaper reported yesterday.

General Motors chief economic specialist Mustafa Mohaterem was
quoted as saying in Detroit that the global chances of Proton,
currently affiliated with Japan's Mitsubishi Motors Corp., would
be enhanced by an equity partnership.

"Our opinion is that buying equity in Proton is more
attractive than taking up a stake in South Korean car makers,"
Mustafa told the Malay-language newspaper Berita Harian.

"This is because Proton has a production rate that meets
demand for its cars while South Korean companies have a
production capacity that is far higher than demand," he said.

Mustafa said small car makers like Proton, which is 16
percent-owned by Mitsubishi, needed bigger partners to be
competitive in the global market.

General Motors already has an indirect stake in the Malaysian
auto industry through its 37 percent-owned Japanese affiliate
Isuzu Motors Co. Ltd. which holds 20 percent of Malaysia Truck
and Bus Sdn. Bhd.