Proton Says Lotus Not For Sale

[Mark H]

KUALA LUMPUR, Malaysia — Malaysian national carmaker Proton has no plans to sell its 80 percent stake in Britain's Lotus Group because it needs the sportscar maker's engineering expertise, reports said Monday.

 

"We are not interested to sell it for whatever value," Proton managing director Syed Zainal Abidin Syed Mohammed Tahir was quoted as saying by The Star.

 

Money-losing Proton has said it is divesting its noncore assets as part of an attempt to return to profitability. Late last year, it sold its stake in debt-ridden Italian motorcycle maker MV Agusta SpA for a nominal euro1(US$1.19) to Italian investment holding company Gevi SPA.

 

Proton paid euro70 million (US$58.8 million) for its 57.8 percent stake in Agusta in 2004, but sold it after blaming provisions for Agusta's debts as a key reason for its own losses in the quarter to September.

 

But Syed Zainal Abidin said Lotus has an important role in enhancing the engineering capabilities and branding of Proton cars.

 

However, Proton has not optimized its use of Lotus expertise since acquiring it in 1998. He said he met Lotus management recently to discuss ways to collaborate in a "more structured and focused manner."

 

"Regardless of what kind of alliance we are going to have with Mitsubishi or any other car manufacturers, Lotus will remain part of Proton," he added.

 

Proton officials could not be immediately reached for further details.

 

Earlier this month, Proton entered into a technical pact with Japan's Mitsubishi Motors Corp. to jointly develop new vehicles. It is also in fresh talks to assemble cars for Volkswagen AG after the German giant aborted plans last month for an equity partnership.

 

Proton is under intense pressure to return to profitability after its domestic market share dwindled to around 30 percent in June from 44 percent last year.

 

Once the king of Malaysia's auto sector, Proton has seen its dominance challenged by foreign car makers as tariff barriers that shut them out for decades were lowered under a regional free trade agreement.

 

http://www.chron.com/disp/story.mpl/ap/fn/3671296.html

[PPPMAT]

All I want for Lotus is stability so they can concentrate 100% on the cars. They have never really had it and a lot of the cars were produced out of necessity.

 

One great quote from Tony Shute (i think) went something like...

 

'if we'd had a proper budget to develop the elise project it wouldn't have been any where near as good.'

 

That said I'd still love to see a properly developed mid range car akin to the M250.