Proton, Peugeot complete feasibility studies

Proton Holdings Bhd and PSA Peugeot Citroen have concluded feasibility studies on the proposed partnership between the two companies.

“The parties are in the process of evaluating the findings of the feasibility studies,” Proton said in a statement on Jan 17.

The studies include cooperation in the areas of optimising Proton’s production capacity focussing on contract assembly, product collaboration, supply of engine and components, and sales and distribution collaborative and contract assembly products.

Peugeot, Volkswagen AG and General Motors Corporation are in talks with the government to acquire a strategic equity stake in Proton.

Meanwhile, Bloomberg reported GM chief executive officer Rick Wagoner as saying that GM and Proton were at an early stage of talks.

"There have been conversations, not extensive," Wagoner, head of the world's largest automaker, told reporters in Dearborn, Michigan, late on Jan 16.

"We can't throw away money, but for sure we have a lot of people scheming how we can grow in those growth markets."

GM is targeting 11 emerging markets, including Malaysia, China and India, as it seeks to offset falling US sales. A partnership with Proton may help GM boost sales in Southeast Asia's biggest car market.