Dr Mahathir: Proton In Talks With Several Japanese Car Manufacturers

Holdings is in talks with several Japanese car manufacturers on the prospects of future collaborations, says newly appointed Proton chairman Tun Dr. Mahathir Mohamad.

According to Bernama, when asked to comment if Proton's former technical partner Mitsubishi Motors is amongst the companies involved, Dr. Mahathir said “We are looking at other Japanese automotive makers. Right now we are cooperating with Honda.”

Dr. Mahathir was delivering his keynote address at the seminar themed 'Investment and Trade Opportunity in Kedah’.

Proton has an existing agreement with Honda which allows the company to rebadge Honda's previous generation Accord model as the Proton Perdana. However, sales is currently limited to only the government.

The exclusion of Mitsubishi Motors is not surprising as the company has since severed ties with Proton following the take-over of Proton by DRB-Hicom, whose management decided to review some of the earlier decisions made.

In 2011, Mitsubishi Motors Corporation (MMC) had originally planned to contract Proton to locally assemble its Mitsubishi ASX, a key model in Mitsubishi Motors' aim to grow its sales in the five largest ASEAN region markets (Thailand, Indonesia, Malaysia, Vietnam, Philippines) to 12 percent by 2015.

The original plan, as outlined in the company's ASEAN Challenge 12 document shared with its shareholders in October 2011, was to have the ASX locally assembled at Proton's plant within the first half of financial year 2012.

History of Proton

Proton Holdings Berhad (stylized PROTON) is a Malaysian automobile manufacturer. It is headquartered in Shah Alam, Selangorand operates an additional manufacturing plant in Tanjung Malim, Perak. The company was established in 1983 as the sole national car company until the advent of Perodua in 1993. Proton is a Malay acronym for Perusahaan Otomobil Nasional Sendirian Berhad. (English: National Automobile Company Private Limited).

Proton was largely a manufacturer of badge engineered vehicles from Mitsubishi Motors between 1985 and the early 2000s. The company has since produced several indigenously designed models and operates in at least 26 countries today, the majority of which are in Asia. Proton was formerly owned by Khazanah Nasional, the investment holding arm of the government of Malaysia. In January 2012, it was taken over by DRB-HICOM, a Malaysian conglomerate in a transaction amounting RM1.2 billion.

Proton, predominantly reliant on its domestic market is currently undergoing structural and internal changes, as evident in the appointment of a new owner, partner, Chairman and the launch of various new and upcoming models in an effort to gain an international presence and increase profitability.