Proton rules out new equity partner
Proton rules out new equity partner
KUALA LUMPUR (Reuters): Malaysia's biggest car maker Proton on
Monday ruled out the possibility of selling a stake to another
foreign car manufacturer, but said it was open to non-equity
partnership.
"Clearly, if it is a function of equity, I think at this
moment it is no longer on the cards," Proton chief executive
officer Tengku Mahaleel Tengku Ariff told a news conference.
"But other than that, we are very open."
Japan's Mitsubishi Corp. and Mitsubishi Motors each own an
8.03 percent stake in Proton. Malaysian government agencies own a
total of 43.56 percent.
Analysts say that Proton, formally known as Perusahaan
Otomobil Nasional Bhd., needs a foreign partner who knows the
business to help it shape up before protective tariffs against
imports from Southeast Asian neighbors tumble in 2005.
Proton already had talks with major car makers on technology
exchange, including DaimlerChrysler AG, Ford Motor Co and General
Motors Corp.
At the news conference, Tengku Mahaleel also said he expected
Proton to produce 202,000 units in the financial year 2000/01
(April/March), up from 184,000 units the previous financial year.
He also said Proton was ready to sign a new 10-year
distribution deal with distributor EON, with whom it has had an
exclusive arrangement in the past.
He said the new 10-year pact would replace a previous 10-year
accord that lapsed in December 1999.
EON, which is also involved in banking, is 32 percent held by
automotive firm DRB-Hicom. As part of an earlier restructuring
plan to reduce debt, DRB was to sell its EON stake to Proton.
That deal has since lapsed.
DRB had earlier sold its controlling 27.7 percent stake in
Proton to state oil firm Petronas.
Tengku Mahaleel said that so far in the current year Proton
production was already 16 percent ahead on the same time the
previous year. He said that except for one model, the Satria,
plants were at planned capacity.
Tengku Mahaleel said Proton would start assembling Proton cars
in Indonesia this year. But the production volume and the models
to be assembled had yet to be decided.