The Chinese group, owner of Volvo, is favorite to enter the capital of the Malaysian brand; the latter would compete with the two French manufacturers.
The information, which circulated since the beginning of the month in Asian auto circles, Took a little more consistency over the weekend in the South China Morning Post, the Hong Kong newspaper owned by Jack Ma, boss and founder of Alibaba. The information is still to be confirmed, none of the protagonists gave a feedback on that.
Only certainties: on one hand, the Malaysian government, which owns 31% of the group, has explicitly given its green light to an alliance with a foreign partner in return for the aid of 325 million Euros granted in the spring of 2016. On the other hand , according to the latest statements of the conglomerate boss who heads Proton, only three foreign groups are still in contention. (Against twenty contacted last year) and the final announcement is expected to be in the spring. Probably in April and at the latest in June.
The third market in Southeast Asia
If at first the operation seems limited in scope, since it would be to get hold of a group which employs 12,000 people, sells mainly in Malaysia and is out of breath, it is much more strategic than it seems. National pride of Malaysia, Proton is first and foremost a gateway to a market of 30 million inhabitants where more than 600,000 vehicles are sold each year. This makes it the third largest market in Southeast Asia, behind Indonesia and Thailand.
Moreover, the new owner will take control of the two currently underutilized factories of Proton, including the Tanjung Malim site, which produces some 150,000 vehicles a year (For Proton but also other brands) but was originally designed to produce up to one million. A production of vehicles and spare parts that are exportable without taxes within the Asean. The future owner of Proton will also benefit from the dynamism of the surrounding markets, which total some 623 million inhabitants.
Remains the political unknown policy. The Kuala Lumpur executive may be reluctant to let Proton, who was a national flagship, find himself in foreign hands and more particularly Chinese. In 2007, the power of the time had already refused a takeover by General Motors.

 

Proton, the fallen national pride of Malaysia

Founded in 1983 as part of the industrialization policy of Prime Minister Mahathir Mohammed, Proton had its hour of glory in the mid 90s. In 1996 Proton even bought
the Lotus sports car brand.
1993 the brand controlled 74% of the local market, thanks in large part to foreign models sold under its own brand. Last year, Proton had more than 15%, unable to convince by proposing models and also because many problems of quality and after-sales service. And sold only 102,000 vehicles, which is hardly a quarter of its production capacity. Currently, the Malaysian state is the main shareholder of Proton, via the holding company DRB-HICOM. In 2007, he had opposed the resumption of the Group by General Motors.

Michaël Berty

independent journalist - E-zine