The on-going discussion between Proton Holdings Bhd and US based-General Motors Corp (GM) on the former’s Tanjung Malim manufacturing facility plant is expected to result in a “win-win” situation.

Proton advisor Dr Mahathir Mohamad is confident that the national automaker would benefit in any possible tie-up.

Recent news had reported that Proton is in talks to sell up to 50 percent of its stake in its Tanjung Malim plant to GM for between RM700 million and RM800 million.

The former prime minister said both parties have the capacity to tap each other’s strength.

“I have not heard of any party taking over the plant, but about using the power plant, yes. What they want is to do part of their production in Malaysia,” he told reporters after a gathering between Prime Minister Najib Abdul Razak and Selangor industrialists in Shah Alam today, hosted by Proton.

“We are sending our people to discuss with them next week and with a firm commitment from both sides, we will see it from there,” Mahathir said.

GM, a global automotive company develops, produces and markets cars, trucks and parts worldwide. It also provides automotive financing services.

GM is the home of Chevrolet, Cadillac, Buick and GMC.

Mahathir said if GM kicks off its production in Proton’s Tanjung Malim plant, the move would support the global company to reduce their cost as well as benefit Proton, particularly in full utilisation of the plant and technology transfer.

“They cannot produce in US to sell in Asia. They are competing with South Korea, China and Japan which are low cost countries compared to America.

“They must come to a low cost-country like Malaysia to produce it. And if you (GM) don’t utilise the full capacity of the Tanjung Malim plant, you lose your money,” he explained.

GM declared bankruptcy in 2009

In 2009, America’s biggest carmaker declared itself bankrupt and filed for Chapter 11 protection.

Asked whether a tie-up with GM would enhance the country’s economy scale, Mahathir said GM was declared bankrupt due to high production cost and it could not compete when cheaper and high quality car makers, South Korea and Japan, penetrated the US market.

“Despite all that, the high quality and expensive technology is still with them. They have produced one of the best hybrid cars,” he added.

With GM’s presence locally, technology transfer would be a gain for Malaysia, he said, adding that in the automotive business, outsourcing should be there, otherwise one would not be able to compete.

Proton’s state-of-the-art plant is utilised at an average of 52 percent

- Bernama