Proton To Maintain Control Of Lotus

[Mark H]

http://today.reuters.co.uk/news/newsArticl...-MITSUBISHI.xml

 

KUALA LUMPUR (Reuters) - Malaysian car maker Proton and Japan's Mitsubishi Motors Corp. revived their old alliance on Thursday as Proton looks to recover from losses and the breakdown of a joint venture with Germany's Volkswagen.

 

The partnership with MMC, a former Proton shareholder that helped the state-controlled firm make its first cars two decades ago, will be restricted to technology and will not involve an equity stake, Proton's new chief said.

 

Earlier, Mitsubishi said the alliance would be unveiled on Friday, but gave no details.

 

"Proton being small, I don't see any reason why it should not be collaborating. That's the journey that we like to go," Managing Director Syed Zainal Abidin Syed Tahir told reporters.

 

Proton, which reported its second straight quarterly loss in November, was unlikely to fully turn around within a year, Syed Zainal Abidin added: "In the auto industry, a change is not going to happen in one week, even one year."

 

But Proton, which recently sold loss-making Italian motorbike firm MV Agusta for 1 euro, will retain control of British sports car maker Lotus, he said.

 

Syed Zainal Abidin, 43, who trained as an engineer, took the driver's seat in December to help turn around a firm struggling with older models, falling market share and stiffer competition.

 

Proton used to dominate the domestic passenger car market with around a two-thirds share, but last year this had dropped to 41 percent.

 

KEY TO SURVIVAL

 

Mitsubishi was a major Proton shareholder until its own financial difficulties forced it to sell its 8 percent stake in early 2004. The Japanese firm still supplies parts to Proton.

 

Japan's only loss-making car maker reported a smaller interim net loss in November as domestic sales rose, but sales in the important U.S. market slowly recovered.

 

Last month, Volkswagen suddenly pulled out of a joint venture plan with Proton after it failed to win control of the Malaysian firm, sending Proton shares down to their lowest in more than four years.

 

VW had been seen as essential to Proton's survival in helping it fend off foreign competition, according to analysts.

 

VW later agreed to supply products and components to Proton based on "specific projects" but without any equity holding.

 

Syed Zainal Abidin said Proton was also seeking alliances in China and India to build cars in these vast markets.

 

"These two markets we can't ignore. China we have tried. It's being re-looked at. We have identified several parties in China," he said.

 

"In India, we will start talking to several parties. In fact, they have approached us." He declined to name any of them.

 

Proton is the brainchild of ex-Prime Minister Mahathir Mohamad, who remains an adviser to the company and who has in the past spoken against foreign control of Proton.

 

"The journey for Proton is really to expand product line, develop new models, and the faster approach is through strategic alliances," Syed Zainal Abidin said. "Time is not on our side."

 

Proton and Mitsubishi declined to detail their new alliance until it was unveiled on Friday.

 

Japan's Asahi newspaper said on Thursday the pair would look at sharing car-development expertise and mutual parts supplies.

 

Proton shares were last traded at 5.35 ringgit, down 31 percent over the past three months.

 

"The general perception is that we have lost our direction. We have not lost our direction. We are clear," Syed Zainal Abidin said, adding the share price should be about 7-8 ringgit.

[Tango190]

So eveyone will be driving a Mitsy soon then

[Snapper]

Evo Power in an Exige

 

Mind you from the Mitsubishi dealers I have dealt with around Birmingham that is a bad thing.

 

I take my Shogun Sport from Birmingham to Millwoods at Cam, Nr Dursley just south of Gloucester to have any work done on it because they have a good dealer principle. A nice chap called Jon Vicker who is fair to deal with and realy pushed to boat out to get me the car I wanted quickley when there when Mitsubishi said it would take a month or so.

 

Mr Jon Vickers. (0145) 354-4321

Millwood Motor Company.

Mill Garage.

Cam,

Dursley

Gloucestershire

GL11 5DH.

[Mark H]

Nice bunny bob

[Steve J]

Oh no. Does that mean Bob can say he still drives a Lotus?

[Tango190]

Oh no.  Does that mean Bob can say he still drives a Lotus? 

<{POST_SNAPBACK}>

No Steve, just that Lotus had Evolved ...

 

To be honest, I am with the car I am with because there was nothing from Lotus that I wanted, apart from a 111R or Esprit, but you all say there crap.

 

When I get really old, I will have an Esprit, and it will be my last venture...

 

And it will still be an S4S

[Tango190]

Nice bunny bob

<{POST_SNAPBACK}>

Yeah, he's been on overtime this week !