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Malaysian Car Maker Talking with the Big 3

10 May 2000

Malaysian Prime Minister claims talks are of a technical nature

    Kuala Lumpur - Proton CEO Mahaleel Ariff has been in talks with several
auto giants, including GM, Ford, and DaimlerChrysler, according to a
statement made by Malaysian Prime Minister Mahathir Mohamad, after the
launch of the new Proton Waja  .  He characterized the talks as being more
on a technical level than on a financial equity basis.  

    This announcement comes amid a slew of announced and then denied reports of
"deal making" between auto manufacturers around the world.  Some seem to be
accurate, as with the Phoenix/Rover situation; while others, like the claim
by Hyundai that a deal was struck between them and Mitsubishi &
DaimlerChrysler, proved to be embarrassingly incorrect.  But so far, no one
is denying the Malaysian report.       

    Mr. Ariff, commenting on the talks, said that Proton was exploring
"partnerships" with other global giants.  

    Proton was originally launched in the early 1980's as the Malaysia sought
to expand its industrial output and gain access to car markets in Asia's
expanding economies.  Proton is expecting to enjoy cost-savings from the
Waja since the majority of its components had been designed, and will be
manufactured, domestically.  Hopes are that the new model will bring in  as
much as $118 million from export sales. 


MJR