TOKYO - Struggling Japanese carmaker Mitsubishi Motors was withdrawing from Malaysia by selling its 7.96 percent stake in the country's national automaker Proton, a news report said late today.

Mitsubishi has already started negotiations with the Malaysian government on the pullout, Jiji Press said, adding this was part of efforts to reorganise production bases in Asia.

The company was now set to focus its production in Thailand, where it currently produces pick-up trucks, it said.

Slumping sales

Mitsubishi Motors officials could not be reached for comment.

Proton was established in 1983 by Malaysian companies as well as Mitsubishi Motors and some Mitsubishi group companies.

On Thursday, Mitsubishi Motors said it now expects its net loss in the year to March to balloon to US$670 million (RM2.5 billion) to slumping sales in North America. - AFP