PROTON STILL OPEN TO ANY BENEFICIAL PARTNERSHIP

KUALA LUMPUR, May 27 (Bernama) -- National carmaker Proton Holdings Bhd is
open to any form of partnership, including with China's Chery Automobile Co Ltd,
as long as it benefits both itself and the country.

However, second national carmaker Perusahaan Otomobil Kedua Sdn Bhd
(Perodua) said it currently did not need any other partnership.

Proton's managing director Syed Zainal Abidin Syed Mohamad Tahir said
it was interested in strategic partnerships regardless the automobile companies.

"If there is interest from any company, including Chery, they have to
approach us first. Then we will make our own fair assessment, whether it is good
for our strategy and more importantly, what is good for the country," he said on
the sidelines of the 2nd Annual Automotive Conference here Tuesday.

He said this when asked to comment on Chery's announcement recently that it
was interested to have a strategic pact with either Proton or Perodua in car
manufacturing.

"I havent been approached. We are open for any discussion but it must be
based on what we need," Syed Zainal said, adding that product and technology was
a key area to be considered.

"We are evaluating our whole strategy. But we have never closed our door.
What is important is a partnership that will benefit both Proton and the
country," he said.

Asked about possible merger and acquisition (M&A), Perodua's managing
director Syed Hafiz Syed Abu Bakar said its strategic partners were already
cash-rich and it was not in need of any M&A at the moment.

"Daihatsu has got a very strong knowledge of the compact car market and
its owner Toyota is top three in the world. So we don't really need M&A at the
moment. There is nothing yet," he said.

Meanwhile, Syed Zainal said that Proton will launch a new sedan model with
engine capacity above 1.6 litres in collaboration with Mitsubishi in the second
half of 2010.

"What is important is that we follow the customer's requirements and taste,"
he said.

On the competition to Proton's multi-purpose vehicle (MPV) Exora from
Perodua's oncoming offering later this year, Syed Zainal said the company has
its own strategy to maintain market share.

"Proton does not just produce for the domestic market but also for the
export market. In July we will be launching it in Indonesia, and then Thailand
and the Middle East as well," he said.

Syed Zainal said Proton needed to be forward-looking and not think Malaysia
as its sole market.

"Don't think Malaysia is the only market and if there are others, we will be
shaken. We need to be very clear of what we want to do," he said.

From next year onwards, Proton will be offering turbo versions of its new
models as it keeps tab on customers' preference.

"The Campro turbo programme is for all models that we are going to produce
in the future. It is part of our technology development and not just in Malaysia
but in other countries as well," Syed Zainal said.

"The fact that we are a global car company, we need to have a programme that
is globaly acceptable and turbo is already the norm in Europe," he said, adding
that the turbo programme was wholly developed by Proton with Lotus.

"This is part of our engine development and as a car company, we have to
continue to do it," he added.

-- BERNAMA