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Malaysia: Proton Looking to Partnerships and New Products To Expand
KUALA LUMPUR, Malaysia — The national car company, Proton, has confirmed that it is looking for a foreign partner to cooperate on new models. 'There is room for strategic cooperation,' said the company's managing director at a press conference.Managing director Syed Zainal Abidin Tahir told reporters at the launch of the Persona subcompact in Bangkok that the company is 'discussing with shareholders all available options' and declared the time is right for 'strategic relationship with a foreign partner.' He added that current global turmoil affecting major car manufacturers could give Proton an added advantage.Syed Zainal said his company is now looking for a partner that can add to Proton's technology base, improve production efficiency — and expand sales in overseas markets, especially emerging ones. With global sales expected to be in the region of 160,000 units in 2008, Proton is too small to sustain a broad new product development program, even with new government subsidies.Proton's sales performance has improved significantly from a low level in 2006, after the company launched its new subcompact Persona and Saga models this past year. The company's sales picture will brighten more with the scheduled launch of its first MPV model next March. The MPV is believed to have been developed mostly in-house, and Proton expects global sales of the model to reach 50,000 to 60,000 units per year. Equally important will be the replacement of the proprietary Waja compact sedan, which is scheduled to be launched in 2010. The company is said to be seeking partners to help maximize its sales potential in overseas markets, especially in Asia and the Middle East.Key to the model's future, and the future of Proton's other mainstay vehicles, will be the successful replacement of the current in-house Campro powertrain, scheduled for 2013-'14. This is an area in which Proton needs foreign collaboration most. Proton also hopes to source a diesel engine from a European carmaker — possibly Peugeot or Fiat — as well as a small engine so it can compete in the domestic small-car market with Daihatsu's Perodua. The company is also in joint-venture talks to develop hybrid and electric vehicles for world markets.Inside Line says: Proton's ambition and product line both continue to grow admirably. — Tony Pugliese, Correspondent