Proton, meanwhile, will have the opportunity to re-position Lotus on the F1 platform after the British subsidiary�s exit from the race in 1994.
�This is a smart partnership between the GLCs (government-linked companies) and entrepreneurs in the true form of one Malaysia,� Kamarudin added.
Kamarudin, who is also deputy chief executive officer of AirAsia Bhd, said his and (AirAsia CEO) Fernandes� involvement was on a personal capacity and �has nothing to do with AirAsia�.
Their investments would not impact AirAsia�s current sponsorship of AT&T Williams, another F1 team, as that collaboration was purely on branding, he said.
An initial amount of �10mil (about RM57mil) had been invested for the development of the Lotus F1 vehicle, as the car had to be approved by the International Automobile Federation for next year�s race, he added.
He acknowledged more investment would be required but declined to disclose the amount, saying that the project was still in its infancy stage.
Meanwhile, most automotive analysts expect the initiative to benefit Proton the most in terms of publicity and marketing leverage as F1 is the most watched sports in the world.
MIMB Investment Bank analyst Rosnani Rasul said the investment size could be insignificant in comparison to the leverage that the country and Proton could gain from the sport.
�The Sepang F1 Circuit, for example, has already recouped its investment after three years. We�re sometimes too cynical to see the intangible benefits,� she said.
Given that Proton was aggressively moving into Indonesia, Iran and Australia, this could be one way to publicise the brand and put it on the global landscape, Rosnani said, adding that it was the right step in the right direction.
OSK Investment Bank analyst Ahmad Maghfur Usman, meanwhile, said Proton�s investment portion might be limited to advertising and promotion activities.
�So far, there is no indication that Proton would be funding it, as it�s supported by the Government and several entrepreneurs,� he said.
Rosnani said even if Proton need to provide funding, it was unlikely to be an issue as it had a huge budget for research and development, or it could source from Lotus.
A head of research, noting that Lotus was known for making performance-driven cars, said: �If Lotus could regain its old fame, it could derive value for Proton, which it could cash on later.�
Proton officials, when contacted, declined comment.
Related Stories:
Malaysia is entering a team for F1 next year; what is the purpose?
No comments:
Post a Comment