Proton to form alliance with Chinese firm
Embattled automaker Proton is expected to announce an alliance with a Chinese firm this week, in the first of a series of deals with prospective partners, the Financial Times said today.
Proton chairperson Azlan Hashim told the newspaper the struggling national company had been talking in recent months to several potential Chinese partners about a collaboration.
"We have been rethinking our future and have concluded that we need several strategic partners," the paper quoted Azlan as saying.
"At one point we had thought of forming an alliance with just one. But now we are looking for partners in multiple areas, whether for new products, components, market access or other activities."
Plunging profits
Proton's imminent move follows the collapse of negotiations in January with Volkswagen as a potential single strategic partner. Azlan gave no indication of how the ventures might be funded.
Proton's national market share was 41 percent last year, down from 60 percent in 2002.
The barely profitable company has struggled with a reputation for producing shoddy and unimaginative models. And as the government has whittled away protection, foreign imports have become even more attractive.
However, the carmarker has been given a new lease of life with a recent tie-up with Japan's Mitsubishi, which is aimed at helping it roll out much-needed new models.
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