Proton nears deal with foreign carmaker

KUALA LUMPUR: Proton Holdings Bhd said it is finalising a collaboration next month with a foreign car maker, which is expected to bring up to RM800 million of investment into the country.

Managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said the tie-up involves using the partner's transmission for Proton's new engine.

The powertrain of a car consists of many components, including the engine, transmission, driveshaft and any of the internal workings of the engine.

He did not reveal the name of the foreign car maker.

"We are finalising the collaboration and it should be completed next month," he told Business Times.

Back in March this year, Proton sealed a preliminary pact with Japan's Nissan Motor Co Ltd to form a strategic alliance. The pact is unlikely to involve any equity purchases.

Both entered into a memorandum of understanding (MOU) to pave way for feasibility studies on specific areas of collaboration which included the potential use of Nissan's platform and powertrain.

The MOU was supposed to end on April 30 this year but both have yet to announce weather the agreement has been extended or terminated.

Auto analysts said the tie-up between Proton and Nissan will fast-track the former's production of its EMAS global compact car and break grounds in the domestic and export markets.

They suggested that two immediate products Proton will get from the potential alliance will include Nissan Fuga. It will be used as a replacement for its ageing Per-dana sedan.