PSA & Proton?
  • Register
  • Help
Results 1 to 5 of 5
Like Tree1Likes
  • 1 Post By 68 404

Thread: PSA & Proton?

  1. #1
    Fellow Frogger! Greg's Avatar
    Join Date
    Sep 2001

    Default PSA & Proton?

    DRB-Hicom Bhd is most likely to sell a controlling stake in Proton Holdings Bhd to French auto giant PSA Group, which produces Peugeot cars, according to sources.

    “PSA is ready to invest a lot of money in Proton and build a new plant in Tanjung Malim, Perak. It has presented the best proposal to rescue and expand Proton’s operation in Asean,” the source says.

    But Chinese car manufacturer Geely Automobile Holdings Ltd, the other contender to buy a 51% stake in Proton, may be offered a proposal to take over Lotus from Proton.

    In earlier negotiations with DRB-Hicom, Geely had expressed more interest in acquiring Lotus, which produces sports cars, rather than the whole of Proton.

    “Proton is of no use to Geely. It wants Proton because of the auto technology in Lotus. And for PSA, which is strong in sport-utility vehicles (SUVs), it is not keen on Lotus,” says the source.

    Indeed, China’s government has been encouraging its auto companies to acquire technology that it lacks. The auto sector has been identified as a weak segment within its manufacturing sector.

    Invitation by DRB-Hicom for bids to be Proton’s strategic partner closed two days ago. Only PSA and Geely have submitted their proposals, according to press reports.

    Proton started the exercise to get a foreign strategic partner more than six months ago after the government gave it financial assistance of RM1.5bil to pay off the vendors of the troubled national car manufacturer.

    One of the conditions of the financial assistance was that Proton, wholly owned by DRB-Hicom, needed to secure a foreign strategic partner as soon as possible.


    DRB-Hicom recently stated that it would conclude a decision on a technical partner for Proton within the first half of this year. Key considerations include strategy and operation of the potential partner.

    According to the source, the French company has proposed to move Proton’s Shah Alam plant to its under-utilised plant in Proton City in Tanjung Malim.

    In addition, PSA will build another new plant in the Perak township to raise the production of vehicles to achieve economies of scale and be competitive.

    “PSA is a latecomer in this region. Now it sees the opportunity to penetrate the Asean market of 600 million people by using Malaysia as a base to export its vehicles tax-free to any of the 10 Asean members,” says the source.

    Among PSA’s proposals that look attractive to Malaysia is a plan to raise the production capacity of Proton cars to one to two million units from 150,000 currently.

    PSA also intends to produce SUVs for the Asean market.

    If PSA’s grand plan comes to fruition, then Tanjung Malim may be turned into Malaysia’s auto hub.

    Besides centralising Proton’s operations, the PSA plan could create 10,000 jobs for the local community, says the source.

    It will also help lift Proton out of its prolonged financial troubles, as the government is not prepared to pump in more money into the bleeding company, which was set up in 1983 by former prime minister Tun Dr Mahathir Mohamad as part of the strategy to industrialise Malaysia.

    Perusahaan Otomobil Nasional Bhd (Proton) was incorporated on May 7, 1983 to manufacture, assemble and sell motor vehicles and related auto products. It produced Malaysia’s first commercial car, the Proton Saga, in July 1985.

    Used to being the market leader in the local auto sector, Proton’s market share fell to 12.5% last year from 15.3% in 2015.

    Its total sales fell 29% year-on-year to 72,300 units due to deteriorating market conditions, said Hong Leong Investment Bank Research in a recent report.

    On the bids for Proton, StarBiz recently reported that Geely was the frontrunner in securing the valuable strategic partnerhip with Proton. Other media followed suit.

    Last year, a senior official of DRB-Hicom was seen in China to conduct negotiations with Geely on the possibility of its entry into Proton. He asked not to be named.

    Keen on the Asean market, Geely produces a variety of vehicle types, including SUVs and sedans.

    It owns the Volvo brand, which it acquired in a US$1.8bil deal in 2010.
    We Have:
    C5 HDI Exclusive 2.7 '09, Pluriel '09, Berlingo 1.6 HDI '10, C4 VTS coupe. C4 Picasso '08, 2CV Charleston '84 Grey, 2CV, '55 Australian delivered. 15/6 H '55, SM '74 BVM, DS21 EFI BVH, DS21 '67 BVH.
    We Had:
    1930C6F, '73 GS1220 wagon X 2, '75 G special, '75 GS panel van, '74 GS Birotor, '82 GSA panel van with factory AC, '85 CX25GTI BVM, 2002 C5 V6, 2006, C5 S2 HDI, '86 BX19GT, '72 DS21 BVM, '55 15/6H, '54 Lt 15,'73 Dyane, '82 Visa Super X, with Chrono Mecs & factory AC, 1972 SM.

  2. #2
    Fellow Frogger! fnqvmuch's Avatar
    Join Date
    Oct 2010
    port douglas


    thx for posting Greg. Reminds me after recent discussion about french marques being awol in asia (since Citroen GS assembly in Indonesia up to 1978?) i think i saw last night current production of at least one Citroen is in either Spain or Malaysia ...

  3. #3
    Veni Vidi Posti 68 404's Avatar
    Join Date
    Oct 2005


    I think PSA would be mad to touch Proton.
    Their cars are out of date engineering wise, and they only have market share in Malaysia due to huge import duties on imported cars.
    Perhaps they would be better off buying Suzuki, now that VW has lost its 19% share in that company?

    Armidillo likes this.
    2008 Renault Laguna 2.0 dCi break
    ​1997 BMW K1200RS

    (George Bush Snr): "I'll never apologize for the United States of America. Ever, I don't care what the facts are."

  4. #4
    sans witticism SLC206's Avatar
    Join Date
    Sep 2003
    North Parramatta


    Quote Originally Posted by Greg View Post
    And for PSA, which is strong in sport-utility vehicles (SUVs), it is not keen on Lotus,”
    Who on earth wrote this rubbish?


    2018 308 GTi 2011 DS3 DSport
    2014 208 GTi 2007 207 GTi 2004 206 GTi180 2000 206 GTi 1995 306 XT

  5. #5
    1000+ Posts Bruce H's Avatar
    Join Date
    Apr 2001


    Proton produced versions of the Citroen AX as the Proton Tiara, so it wouldn't be the first time the companies did business.
    Bruce H

    Now 99 Xantia SX x2; 96 Xantia SX; 76 GS Club Estate x2; 76 GS Club; 74 GS Club; 88 VW T3 Reimo
    Before: AX Gti; BX 19TRi Estate; CX 2200 Super & Pallas; CX2400 Pallas; CX 2400ie Prestige auto; DS3 DStyle; GS Pallas; GSA Club; Xantia Image Estate; Xantia Exclusive; Xsara VTR R4; 1.4 Special Estate; Virage; R16TS

    Contact for the Australian Citroen GS GSA and Birotor Register

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts