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.