Final 3 Shortlisted Strategic Partners Suit Proton's Vision

By Azizul Ahmad SHAH ALAM (Selangor, Malaysia), Nov 11 (Bernama) -- The final three shortlisted potential foreign strategic partners for Proton all have the criteria that can propel the national carmaker to greater heights, Proton Holdings Bhd Chief Executive Officer Ahmad Fuaad Kenali said. He said the final three shortlisted automotive players or original equipment manufacturers (OEMs) remain the frontrunners as the company believes they would be able to provide good technology and know-how, sharing best practices with Proton. "They also want to use Proton as a stepping stone to penetrate ASEAN and we have an interest for them to partner us to grow market share in the region specifically, and the global market next. "Hopefully in the future, we can capitalise on their assets and intellectual property to take us to greater heights," he told reporters after the launch of Proton-Petronas co-branded products here Friday. Proton is currently undertaking a request for proposal (RFP) exercise seeking a partner that can provide a strategic, operational and cultural fit on a permanent basis with the intention to grow its automotive business. "From 15 parties who submitted conceptual proposals based on the RFP, the number was reduced to eight, then five, and now three are left, all based on Proton’s evaluation of their capabilities, resources and ability to work together,” he explained. But Ahmad Fuaad declined to confirm if China’s Geely Automobile Holdings, owner of Swedish carmaker Volvo Cars Corp, is one of the remaining three, or which region the three are from. On whether the OEMs are interested in owning Proton's entire stake, Ahmad Fuaad said it is too early to discuss the matter. "The deal is for the whole group of Proton, including Lotus Group, our wholly-owned unit. But depending on how they propose to us, it can be either both, or one (entity), or a combination,” he said. On Lotus, Ahmad Fuaad said the manufacturer of sports and racing cars is a very good asset with a brand value of its own with its numerous Formula One wins. "Lotus are now in the process of being turned around. The sales are picking up. They just got access to the US market through the Evora 400 model. "The US market is quite big. Lotus sales in the US market can hit more than 2,000 per year, enough for the company to break even and turn profitable in the future,” he told Bernama. Ahmad Fuaad said Proton expects to receive a complete proposal in February 2017 from the interested parties and will make an announcement after a final partner is selected. "There could be further negotiations prior to the conclusion, but hopefully a signing can be done by May 2017,” he added. -- BERNAMA