This story is not about a subatomic particle with a positive electric charge. This being autoevolution, Proton equals that Malaysian holding company, which also happens to own legendary British automaker Lotus Cars. Founded in 1983 and once loaded with cash, Proton now finds itself between a rock and a hard place.
Before anything, it should be noted that Lotus F1 Team is no longer a part of the king motorsport. What’s more, Proton hasn’t sold too many cars in recent years, chiefly because the Malaysian manufacturer doesn’t make desirable cars. Other than that, Proton doesn’t do too well when in terms of exports.
All these things taken together spell big trouble for Proton, who accessed 1.5 billion ringgit (approximately $365 million) in financial aid in April from the Malaysian government. And as expected, the government’s goodwill hasn’t helped Proton too much. As per a report from Automotive News Europe, the publication has learned from insiders that Proton could sell a stake of itself to Groupe PSA, Renault, and Suzuki, all in the name of saving the company.
A PSA spokesman told the cited publication that the Peugeot brand “confirms it is responding to a request for proposals initiated by Proton and its shareholder,” without going into the fine details of the offer. Renault and Suzuki, on the other hand, have declined to comment on the matter.
To understand how bad things are going over at Proton, the manufacturer sold 102,000 vehicles last year albeit production capacity is good for 400,000 units per year. In plain English, Proton works at a quarter of its potential. Of course, unused production capacity equals money down the drain.
Back during its heyday (early 1990s), Proton controlled something like over 70 percent of Malaysia’s automotive market share. Nowadays, Proton is struggling to maintain a share of 15 percent. Given the circumstances, the Malaysian brand could sell a stake of itself or Lotus to get back on track. DRB-Hicom, the parent company that controls Proton, has not ruled out the potential sale of Lotus Cars, which is a tell-tale sign of things to come.
If Lotus gets sold for the purpose of saving Proton, that would be the third time the British manufacturer changed hands since the 1980s. After General Motors bought 91 percent of Group Lotus by October 1986 for £22.7 million, Romano Artioli then acquired it in 1993 for £30 million. Then Proton came along three years later, buying an 80 percent stake valued at £51 million. Who will be next for Lotus, God only knows (Beach Boys pun intended).
All these things taken together spell big trouble for Proton, who accessed 1.5 billion ringgit (approximately $365 million) in financial aid in April from the Malaysian government. And as expected, the government’s goodwill hasn’t helped Proton too much. As per a report from Automotive News Europe, the publication has learned from insiders that Proton could sell a stake of itself to Groupe PSA, Renault, and Suzuki, all in the name of saving the company.
A PSA spokesman told the cited publication that the Peugeot brand “confirms it is responding to a request for proposals initiated by Proton and its shareholder,” without going into the fine details of the offer. Renault and Suzuki, on the other hand, have declined to comment on the matter.
To understand how bad things are going over at Proton, the manufacturer sold 102,000 vehicles last year albeit production capacity is good for 400,000 units per year. In plain English, Proton works at a quarter of its potential. Of course, unused production capacity equals money down the drain.
Back during its heyday (early 1990s), Proton controlled something like over 70 percent of Malaysia’s automotive market share. Nowadays, Proton is struggling to maintain a share of 15 percent. Given the circumstances, the Malaysian brand could sell a stake of itself or Lotus to get back on track. DRB-Hicom, the parent company that controls Proton, has not ruled out the potential sale of Lotus Cars, which is a tell-tale sign of things to come.
If Lotus gets sold for the purpose of saving Proton, that would be the third time the British manufacturer changed hands since the 1980s. After General Motors bought 91 percent of Group Lotus by October 1986 for £22.7 million, Romano Artioli then acquired it in 1993 for £30 million. Then Proton came along three years later, buying an 80 percent stake valued at £51 million. Who will be next for Lotus, God only knows (Beach Boys pun intended).