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Proton, Mitsubishi, in new alliance

2006-02-03 12:34

The Proton Gen-2 - on sale in South Africa

Proton was in the news recently when it was announced plans to form an alliance with Volkswagen had failed.

Proton and Mitsubishi are scheduled to sign an agreement during a ceremony at Proton's research and development facility on the outskirts of Kuala Lumpur, today (Friday), Kyodo News reports.

Proton's new chief executive and managing director, Syed Zainal Abidin Syed Tahir, told the news agency the collaboration with Mitsubishi involves technical co-operation but no equity holding.

Mitsubishi Motors and its trading house Mitsubishi were previously major technical partners and shareholders of Proton, holding a combined 15.8% stake, and the Malaysian carmaker?s earlier models were actually re-badged Mitsubishi models.

Mitsubishi ended the 21-year partnership last year by selling off all its shares though it still supplies parts and engines to Proton.

Proton's Syed Zainal Abidin Syed Tahir, who joined the company last December, reportedly said the company is not expected to fully turn around within a year though there are plans to expand in overseas market with an eye on the huge Chinese and Indian markets.

:These two markets, we can't ignore. China, we have tried...we have identified several parties in China," he told Kyodo News, adding: "In India, we will start talking to several parties. In fact, they have approached us."

He declined to name the parties.

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