Study on Proton-Perodua merger almost complete

A study on the proposed consolidation of the local national automotive companies is almost complete, said International Trade and Industry Minister Mustapa Mohamed today.

"This (Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd merger) proposal was mooted by the prime minister.

"Since he (Najib Abdul Razak) made the statement, we commissioned a study and it is almost completed. But it is not been formally presented to the government," he said at the launch of Proton's latest model, Inspira, in Shah Alam today.

Also present were Proton adviser Dr Mahathir Mohamad, Proton chairperson Mohd Nadzmi Mohd Salleh and managing director Syed Zainal Abidin Syed Mohamed Tahir.

It is a very important proposal requiring discussions with the various stakeholders to ensure a fair deal, he said.

"We have not come out with any decision yet," he said, adding that the merger should focus on cost and productivity.

Asked on the collaboration between the Australian Federation of Automotive Parts Manufacturers (FAPM) with PVA and Malaysian Automotive Component Parts Manufacturers' Association, Mustapa said the opportunities were huge.

"There is a lot of excitement for Australian component manufacturers to develop partnerships with Malaysian vendors.

"The opportunity is huge in terms of strategic partnerships including possibility of investing into Malaysian companies, and use Malaysia as a base to penetrate the Asean market," Mustapa said.

On Inspira, Mustapa said Proton was supportive of the National Automotive Policy and the national carmaker was moving in the right direction with the collaboration with Japan's Mitsubishi Motor Corporation.

Meanwhile, Dr Mahathir said Proton has made good progress not only in designing but also in the technical area and technology.

He was confident that Inspira will bring pleasure in terms of driving experience.

On the Proton-Mitsubishi partnership, Dr Mahathir said: "Proton has opportunities to work with any company but we chose Mitsubishi because we are comfortable with them."

- Bernama