Filed under: Plants/Manufacturing, GM
GM may make bid for Proton
GM has thrown its hat into the ring, along with VW and PSA Peugeot Citroen, to purchase floundering Malaysian carmaker Proton. Over the past three months, Proton has lost 250.3 million ringgit (or about $71.5 m US) due to increased competition from Malaysian-based Perodua Motors and Naza automakers.The state-owned carmaker has met with GM officials over the past few months and it's expected that a bid for Proton could be made sometime this month. If General Motors would purchase a controlling stake in the foreign automaker, they would have control over both Proton's holdings and manufacturing capacity.
Since Volkswagen and PSA Peugeot Citroen are the preferred bidders, the chances of GM making a winning bid are up in the air. But GM's clout in the marketplace may be to the advantage of Proton, as an executive told one daily newspaper that GM may help Proton build a car for the U.S. market in five years. If that's the case, we'd like to see Proton's relationship with Lotus exploited to our benefit on these shores.
[Source: Business Week]
Reader Comments (Page 1 of 1)
isrltrkfn 2:05PM (1/10/2007)
This might be a good idea, if lotus is involved
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SherbornSean 2:07PM (1/10/2007)
Didn't GM own Lotus for a while back in the 70's?
An Ecotec Elise would not be a bad thing, I suppose.
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Richard 2:28PM (1/10/2007)
GM owned a piece of Lotus, but not the whole company IIRC.
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Alex 2:41PM (1/10/2007)
this would kill lotus...
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GH 2:52PM (1/10/2007)
GO AHEAD GM....GO GLOBAL! While your US plants close
workers go on welfare, the economy tanks , your great
investment strategies will again prove futile in that
the car you plan to bring to market here in five years
will find no buyers ... TANKED US ECONOMY!
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Howard Kerr 3:12PM (1/10/2007)
"Interesting" comments...so far.
What I don't understand is, why is GM interested in Proton? GM had a stake (a small one) in Suzuki, who until GM SOLD their share was building somewhat unremarkable cars and miniSUVs. Proton is currently building rehashed Mitsubishi designs and even the price advantage they once had doing this seems to be disappearing.
It almost looks like GM somehow needs/ or enjoys buying into small car companies...then selling their stake just as the company that was acquired breaks out of the design and sales dolddrums. Look at Fiat before and after GM, Suzuki and Subaru, too.
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Tim 3:35PM (1/10/2007)
What Gm you want to buy margarine? Oh you want to buy on MARGIN...
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Ugh 4:17PM (1/10/2007)
GM hates America
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hondacura 4:24PM (1/10/2007)
I think the allegations are false behind the scene. I do believe GM made a bid but they don't really have the finances to buy or even invest 50%. I think this all PR bull like Tom Cruise & Katie Holmes. It's just to fool the public into thinking GM has already turned the corner but they haven't really. Also this is too make all their loyal buyers (fools if u ask me) to stand behind a company who doesn't honestly give a damn about you. I believe GM was involved in rising gas prices.
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Sue Esponte 5:09PM (1/10/2007)
GM sees oversees manufacturing possibilities. I just want GM to stay clear of Lotus although I'm not sure I love the idea of any of the contendors winding up with control over Lotus.
Porsche already has a controling stake in VW, which means they're not going to want any VW subsidiary playing in their court....that's bad news for the next Espirit and I'm not sure what it means for the Elise/Exige (although, arguably they're too fringe to be considered real competition for the Boxster/Cayman).
Then there's Peugeut...talk about a mess. At least they wouldn't feel the need to neuter Lotus based on competitive internal content alone.
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Stuart 5:26PM (1/10/2007)
I think they plan to buy the company so they can sell their Opel cars under the Proton badge as they already do with Saturn, Holden, Vauxhall and Opel. To the malaysians it will still seem to be a malaysian company with its tax break.
I just hope they sell Lotus on rather then stave it like they did in the 90'S
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Craig N. Cote 6:22PM (1/10/2007)
I remember when Toyotas were being sledgehammered in GM parking lots because they were Japanese all the while GM was buyin Japanese made trucks from Isuzu and slapping their Chevy badge on them and calling them Luvs. I''ve taken crap for riding Hondas and driving Toyotas because I didn't buy "American". WHAT'S GM DOING BUYING MALAYSIAN? With their pathetic financial status (losing millions upon millions but calling it a good year and things are turning around) haven't they learned their lesson after losing 2 BILLION in the again non-American Fiat Deal? Will they have this company build cars for them in Malaysia and then call it "An American Revolution" like they do with their Daewoo Korean built Aveo? If all Mexican made Avalanches and HHR's, and all Canadian made Monte Carlos and Impalas can be described as the same, GM must think alittle Malaysian won't hurt. Can't wait for Toyota to take over from GM most cars sold per year, then they'll be ahead in EVERY catagory out there. Ever notice how GM never talks about resale value in their commercials?
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Nick 11:04PM (1/10/2007)
Wow, some of the comments above are all over the map.
First off, this would do nothing more than strengthen GM's hand in Asia. As it is right now, GM bought most of Daewoo to great GM-Daewoo from which they've sprung into other markets around the world (using the Chevrolet brand). Now they have operations set up in India, China and will soon have a Polish plant producing GMDAT's Aveo/Gentra.
If GM purchases Proton it will give them added capacity in South East Asia as well allow them to enter new markets (as all manufacturers want to do). If they can build some GM products in Malaysia for sale in Malaysia or the rest of South East Asia it will enable them to further their global reach.
As for Lotus, GM did own them back in the day but sold their interest to an Italian millionaire named Romano Articoli (who also purchased Bugatti at the time) -- the Elise is named after his grand-daughter. Later Articoli sold it to the Malaysians.
GM getting back into bed possibly with Lotus isn't a horrible thing as Lotus Engineering is a great outfit (vs. Lotus Cars, Ltd. which is a manufacturing arm). The Ecotec comment above was actually considered for awhile. When GM was building the VX220 with Lotus, they used Ecotec engines and Louts was said to be thinking about using them in favor of the Rover sourced K-Series engine. Could you gusy imagine a Lotus Exige or Elise with GM's 260hp 2.0L Ecotec Turbo?
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Greg Abbott 11:42PM (1/10/2007)
Like all things, it depends on the price GM pays for this. There are some mutual advantages here - a bigger foothold in Asia, access to some Lotus engineering, as well as Lotus cars in the North American market.
As a Saab guy, I'm painfully aware of the starvation diets resulting from GM's failure to execute on its smaller acquisitions. But the last couple of years, current management seems to be making some sensible decisions.
So, we'll see. There's more potential synergy here than any resulting from GM's (former) stakes in Suzuki or Subaru, IMHO.
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Jeff Banks 1:39AM (1/11/2007)
Uh, there is an Ecotech lotus. Its called the Europa.
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flush 3:42AM (1/11/2007)
I don't see what value Proton brings to any of these companies, least of all, GM.
sub-par design and quality, the only somewhat bright star in the portfolio is the lotus purchase which is managed as a wholly owned subsidiary (which is why lotus is still decent)
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