Vw To Buy Major Stake In Proton?

[Mark H]

Norfolk sportscar manufacturer Lotus could soon have a new owner, after it emerged yesterday that German car giant Volkswagen was in talks to buy a major stake in its parent company Proton.

 

VW could pay up to £250m for a 30pc interest in Proton and control of the company's management, according to reports in Malaysia.

 

The Malaysian government, which owns a major stake in Proton, has been in talks for some time over a proposed alliance, to help the car maker improve its performance.

 

Talks stalled because Proton executives, including chief executive Mahaleel Ariff, were reported to be opposed to giving up a controlling stake in the business to an overseas car company.

 

But Mr Ariff left Proton earlier this week after failing to agree a new contract - prompting speculation a deal with VW was close.

 

Proton's share price climbed 8pc yesterday on suggestions the Malaysian government's investment arm Khazanah Nasional, which owns 42.7pc of Proton, was in talks to sell VW a 30pc stake.

 

Khazanah confirmed in a statement that discussions were being held on Proton's proposed alliance with Volkswagen.

 

Proton has been struggling to match its Japanese and South Korean rivals, and has seen its share of the domestic market fall dramatically.

 

Nissan and Hyundai in particular have chipped away at Proton's market share by introducing locally produced models at competitive prices.

 

A deal with VW would give Proton access to VW's technology and at the same time allow VW greater access to Asian markets which last year accounted for less than 7pc of its sales.

 

But it is less clear what VW would want with Lotus, which was bought by Proton for £65m in 1996.

 

The VW group already has its own engineering research centres and sports car businesses and some motor industry analysts believe the Hethel- based company would not be a core business.

 

The possible change of owner is bound to create uncertainty at Lotus, which has just embarked on a 10-year plan to transform its prospects and make it financially self-supporting.

 

Last year, more than 200 people were made redundant in the firm's engineering division after the loss of a major contract to design a new engine range for Proton.

 

The engineering division has now been reorganised to focus on winning more smaller contracts. In the past few months it has succeeded in winning more than 50 new projects with more than 30 customers.

 

At the same time, the cars division has announced a plan to increase massively production at Hethel and develop a series of new models.

 

Under the plans, a new GT model based on the Elise platform will be launched this year, with the replacement for the Lotus Esprit due to be announced next year. And by 2010, Lotus is aiming to have unveiled a new mid-ranged sports car.

 

Production at Hethel is due to be increased to around 8000 cars a year by 2010 from the current level of around 4500, although the Esprit will be built by Proton in Malaysia.

 

http://business.edp24.co.uk/story.aspx?bra...3A42%3A22%3A997

[daves2111s]

Yep it looks like it must be true I originally came across this rumour a few weeks ago in Autocar or Autoexpress where they said exactly this.

 

So I guess the new Loti will be a bit beatle shaped

[jez_s]

Somebody on pistonheads was saying watch out for an announcement from Lotus next week on that new coupe, possibly Tuesday!!

[Mark H]

http://news.moneycentral.msn.com/provider/...0731&ID=5005805

 

More there.

[Mark H]

and here:

 

http://www.bernama.com.my/bernama/v3/news_...s.php?id=147951