Proton-Goldstar: Now Proton Says No Summons

Proton Holdings Bhd (5304 –ed.) has not been served with any summons by the Chinese joint venture (JV) partner, Goldstar Heavy Industrial Co Ltd, and therefore was not aware of the basis of the purported claim, it said in a reply to Bursa Malaysia query.

Bursa Malaysia queried the national carmaker on a news report that said Goldstar was claiming RM520 million from Proton for breach of contract.

[the Star daily said Wednesday (Dec 17, 2008) that Goldstar had started legal action in Guangdong province, seeking about 1.0 billion yuan in compensation over the failed venture, Malaysiakini news portal reported (AFP’s version here) – ed.]

Proton also confirmed the JV company still existed though it never commenced business operations due to the failure of Goldstar to meet its contractual obligations including procuring the necessary approvals from the relevant authorities in China.

“The parties have referred the dispute to arbitration, in accordance with the spirit of the JV agreement,” it said.

Proton’s JV collaboration, signed in early 2002, was to assemble Waja cars and make parts in China, tap the vibrant growth in the world's populous nation as well as cater to its neighbouring countries.

The JV involved Proton taking up a 49 per cent stake in Goldstar for RM85.5 million. — Bernama via M/Insider

Proton-Mitsubishi: Reunion of old partners! ~ Malaysiakini

Dear Proton, Just a note to wish you every success in your new alliance. We’ve watched you do well through stock market…

afp: Malaysia's Proton announces big jump in profits

...and have every confidence that you’ll breeze through the next stage in your ambitious scheme. Your attitude towards these things is right, and you’ve got nothing to worry about.

Now back to your new ride!

[Malaysiakini Dec 5, 08 2:42pm]Malaysia's national carmarker 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.

Proton was formed 25 years ago by former premier Mahathir Mohamad as part of an ambitious national industrialisation plan, but its market share has slumped in recent years as it flailed in a newly deregulated market.

It has also suffered from a reputation for unimaginative models and poor quality that has left it struggling to compete against Japanese and European carmakers.

The government has urged it to forge a partnership with a foreign automaker to give it the expertise and economies of scale that it needs to survive.

However, 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. – Agence France-Presse - 12/5/2008 6:42 AM GMT