SHANGHAI - National carmaker Proton has received the green light from Chinese authorities to establish a joint venture in the world's fastest growing auto market, state press reported today.

Proton and Guangdong Goldenstar Heavy Industries, a privately-owned Chinese car company, will each own 50 percent of the planned 500-million-dollar joint venture located in southern Guangdong province, the Business Weekly said.

The two companies will make a combined initial investment of RM342 million (US$90 million), the report said.

Other possible ventures

The new company, Goldenstar Proton Automobile Company Ltd, will produce the Lotus Elise sports model, Proton's Waja car and some multi-purpose and sports-utility vehicles.

The Lotus model is a design by the British Lotus Group, which Proton gained an 80 percent stake in 1996.

Output at the new joint venture will reach 100,000 units by 2008, the report said.

Proton is also in negotiations with China's Geely Group, another private firm, and First Automotive Works, China's biggest state-run automaker, the paper said.

Excepting the DaimlerChrysler group, the world's largest carmakers have all established joint ventures in China in the hope of cashing in o­n the prospects for the potentially huge Chinese auto market. AFP