Malaysian carmaker to decide on Daihatsu bid next month
Malaysian carmaker to decide on Daihatsu bid next month
KUALA LUMPUR (AFP): Malaysia's second national carmaker Perodua will decide by next month on a bid by its Japanese partner Daihatsu Motor Co. Ltd. to buy a majority stake, a report said Sunday.
Talks between Daihatsu and Perusahaan Otomobil Kedua Sdn. Bhd. (Perodua) were still ongoing, its managing director Abdul Rahman Omar was quoted as saying by The Sun newspaper.
Perodua shareholders would make a decision on Daihatsu's bid to increase its 25 percent stake in the firm latest by September, he added.
Daihatsu Motor 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.
The local shareholders are UMW Corp. with a 38 percent stake, MBM Resources Bhd. 20 percent and PNB Equity Resource Corp. 10 percent.
Reports earlier said Daihatsu, a subsidiary of Toyota Motor Co., planned to take up a majority stake in Perodua to increase the firm's annual output by a quarter to 150,000 vehicles ahead of the ASEAN Free Trade Area (AFTA).
An end to Malaysia's high import tariffs on cars, which had benefited the partners, will force them to boost competitiveness.
Under AFTA, tariffs for most products in the region will be reduced to a maximum of five percent by 2003. Malaysia has obtained a two-year reprieve for its auto industry until 2005.
The New Sunday Times quoted Prime Minister Mahathir Mohamad as saying that a foreign stake in local carmakers was necessary to reduce production cost and increase output to stay competitive ahead of AFTA.
Perodua on Saturday unveiled a new compact vehicle, the "Kelisa," which is based on the Daihatsu Mira, to be officially launched on August 24.
Abdul Rahman was quoted as saying that the company hoped to increase its domestic market share to about 30 percent, from 28 at present, with the new addition.
The country's main carmaker Proton controls 65 percent of the market.