Renault studying Proton cooperation

A strategic partner is crucial for loss-making Proton's turnaround.

KUALA LUMPUR: Renault views a cooperation with Proton Holdings Bhd as an Asia growth opportunity, according to the regional head.

Renault’s Asia-Pacific region chairman Gilles Normand said on Thursday that Renault has the lowest market share worldwide in the Asia-Pacific while Proton is open to cooperation with international manufacturers.

In an interview with Bloomberg TV, he said as Nissan hopes to conclude a deal soon with Mitsubishi Motors, that could strengthen alliance partner Renault’s Asia-Pacific presence.

Normand sees “much more opportunities than any risk” to the Mitsubishi Motors deal.

It has been reported that loss-making Proton has shortlisted five candidates - Volkswagen AG, Suzuki Motor, Renault SA, Groupe PSA and Geely - as its potential strategic partner. 

According to CIMB Equities Research, Proton’s management confirmed that it planned to select the strategic partner before the first half of 2017, which is the deadline set by the Government following the RM1.5bil soft loan assistance earlier this year.

The carmaker has received proposals from the interested parties and is in the midst of reviewing them.