Rover, Proton sign deal

Rover, Proton sign deal

KUALA LUMPUR (Reuter): Britain's Rover Group may make engines for Malaysia's car company Proton Bhd under an agreement signed yesterday that loosens Japan's stranglehold on Malaysia's indigenous car manufacturing industry.

Witnessed by Britain's top trade minister Michael Heseltine and Malaysia's Minister of International Trade and Industry Rafidah Aziz, it is the first major agreement between a Malaysian state firm and a British company since Kuala Lumpur ended its punishment of British business last month.

The agreement says the two companies will examine the possibility of manufacturing Rover's T-series petrol engine for Proton cars.

Mitsubishi Motors Corp., which has a 17 percent stake in the joint venture company making the Proton, now supplies already- assembled engines for the car from Japan.