Proton Still Open To Any Beneficial Partnership

May 26, 2009 21:33 PM

Proton Still Open To Any Beneficial Partnership

By: Ramjit

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KUALA LUMPUR, May 26 (Bernama) -- National carmaker Proton Holdings Bhd is open to any form of partnership, including with China's Chery Automobile Co Ltd, as long as it benefits both itself and the country.

However, second national carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua) said it currently did not need any other partnership.

Proton's managing director Datuk Syed Zainal Abidin Syed Mohamad Tahir said it was interested in strategic partnerships regardless the automobile companies.

"If there is interest from any company, including Chery, they have to approach us first. Then we will make our own fair assessment, whether it is good for our strategy and more importantly, what is good for the country," he said on the sidelines of the 2nd Annual Automotive Conference here Tuesday.

He said this when asked to comment on Chery's announcement recently that it was interested to have a strategic pact with either Proton or Perodua in car manufacturing.

"I havent been approached. We are open for any discussion but it must be based on what we need," Syed Zainal said, adding that product and technology was a key area to be considered.

"We are evaluating our whole strategy. But we have never closed our door. What is important is a partnership that will benefit both Proton and the country," he said.

Asked about possible merger and acquisition (M&A), Perodua's managing director Syed Hafiz Syed Abu Bakar said its strategic partners were already cash-rich and it was not in need of any M&A at the moment.

"Daihatsu has got a very strong knowledge of the compact car market and its owner Toyota is top three in the world. So we don't really need M&A at the moment. There is nothing yet," he said.

Meanwhile, Syed Zainal said that Proton will launch a new sedan model with engine capacity above 1.6 litres in collaboration with Mitsubishi in the second half of 2010.

"What is important is that we follow the customer's requirements and taste," he said.

On the competition to Proton's multi-purpose vehicle (MPV) Exora from Perodua's oncoming offering later this year, Syed Zainal said the company has its own strategy to maintain market share.

"Proton does not just produce for the domestic market but also for the export market. In July we will be launching it in Indonesia, and then Thailand and the Middle East as well," he said.

Syed Zainal said Proton needed to be forward-looking and not think Malaysia as its sole market.

"Don't think Malaysia is the only market and if there are others, we will be shaken. We need to be very clear of what we want to do," he said.

From next year onwards, Proton will be offering turbo versions of its new models as it keeps tab on customers' preference.

"The Campro turbo programme is for all models that we are going to produce in the future. It is part of our technology development and not just in Malaysia but in other countries as well," Syed Zainal said.

"The fact that we are a global car company, we need to have a programme that is globaly acceptable and turbo is already the norm in Europe," he said, adding that the turbo programme was wholly developed by Proton with Lotus.

"This is part of our engine development and as a car company, we have to continue to do it," he added.

-- BERNAMA

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