Malaysia Proton ties with Japan Mitsubishi Motors again

MALAYSIA’S national carmaker Proton on Friday announced it has inked an agreement to develop a new vehicle with its former Japanese partner Mitsubishi Motors Corp.

Under the ambitious scheme, Proton, which is in need of advanced technology and auto designs in order to remain competitive, will use Mitsubishi expertise to develop a new model, it said in a statement to the stock exchange.

It said the alliance would also allow the two companies to improve component quality for Proton vehicles, and explore options for exports and contract assembly.

Mitsubishi Motors was a former Proton shareholder and helped the state-controlled firm make its first cars more than two decades ago. It sold its stake in 2004.

For Mitsubishi Motors, Japan’s fourth-biggest carmaker, the deal would provide a springboard to expand its business in Malaysia, Southeast Asia’s biggest passenger car market.

However, their previous talks with Volkswagen and General Motors have collapsed, with the stumbling block reputed to be demands for a stake in Proton. The Mitsubishi deal does not include any ownership changes.

With this move we could see Mitsubishi inspired Proton “Lancer” in future is possible.