Proton denies knowledge of GM bid
While it's pretty clear that GM is definitely interested in buying a piece of Proton pie, Proton management say they know nothing of the plan. That's only a little suprising, since the Malaysia
n government owns 53% of Proton and is in negotiations with several suitors to sell some of that stake, government officials say. Forbes reports that the Malaysian's want the deal finished by March, so we shouldn't have too long to wait. That same article states, "The current bid involves a plan to take a small stake in Proton at the holding level, as well as a stake in its manufacturing arm, Proton said."
So why is GM so keen on buying into Proton? Here are some of our ideas...
[Source: Forbes via Paul Tan]
n government owns 53% of Proton and is in negotiations with several suitors to sell some of that stake, government officials say. Forbes reports that the Malaysian's want the deal finished by March, so we shouldn't have too long to wait. That same article states, "The current bid involves a plan to take a small stake in Proton at the holding level, as well as a stake in its manufacturing arm, Proton said."So why is GM so keen on buying into Proton? Here are some of our ideas...
- Proton owns Lotus, which was once owned by GM. Is this merely an effort to regain a lost love? Uh, not likely.
- GM rolled out the Volt electric concept last week in Detroit, despite reportedly not having the technology to back it up. Is it just coincidence that Lotus is working to design advanced electric vehicles for Obvio! and has been working with the Tesla gang? Or is GM angling to buy into that technology?
- Or is GM looking to get a piece of the Chinese-carbuilding action? Also not likely at all since they're already involved in building cars in China and doing quite well at it.
- Proton sells vehicles in many countries not served by the General. A stake in the Malaysian company could be seen as a good entry point to otherwise hard-to-reach markets.
[Source: Forbes via Paul Tan]
Reader Comments (Page 1 of 1)
Avinash Machado 10:28AM (1/15/2007)
Perhaps GM will start producing some of its cars in Malaysia where production costs are even lower than Mexico. That is if it manages to acquire Proton which might not be easy since there are many other bidders.
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John P. 12:00PM (1/15/2007)
with the anti-american/pro-islam attitude in the govt. of malaysia, I'd be surprised if they allow gm in on the proton mess.
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Matt Keegan 1:50PM (1/15/2007)
I vote for #4. GM could use Proton as a stepping stone to bigger and better things.
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tommy e 7:28PM (1/15/2007)
Didn't Lotus help design suspension systems for GM? I think they did and even helped design the 32 valve V8 in the C4 ZR1. Maybe they're interested because they want Lotus engineers to help create a Cadillac and Corvette with world renowned ride and handling as well.
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