DRB-Hicom Aims To Pick Foreign Partner By First Half Of 2017

KUALA LUMPUR, Feb 8 (Bernama) -- DRB-Hicom Bhd, the owner of Proton Holdings Bhd, targets to complete the selection of foreign strategic partner (FSP) for the automaker by the first half of this year. It is now waiting for the submission of bids from potential partners, after which an earnest evaluation of the bids would commence, the company said in a statement. The parties have conducted their own due diligence on Proton over the past weeks. The entry of an FSP would enable Proton to revitalise itself through access to new platforms, powertrains and technologies, which would further improve its range of products and quality. The group believes that Proton can be a more successful carmaker once an FSP is on-board. "It is important to point out that DRB-Hicom's search for an FSP for Proton is a critical exercise to ensure the sustainability of the national carmaker. "The FSP search is not about shirking our national responsibility but about enhancing Proton as a bonafide carmaker, and eventually putting them, and Malaysia, on the global map," it said. Proton has been in the market since the mid-1980s, and it has some brand equity in the domestic market, despite past and current challenges. This revitalisation of Proton's market share underlines DRB-Hicom's intent on keeping the brand as a player in the automotive market. As a local company, DRB-Hicom is also proud to be the owner of the first national and ASEAN's only car manufacturer. "We have stated before that we would maintain a significant equity in Proton, and this has not changed. "We shall also assess the intention of the potential partners in utilising the current homegrown vendor network," said DRB-Hicom, adding this was a very significant element in its evaluation as it also own subsidiaries serving Proton as vendors and would avoid for these homegrown network to be diluted substantially. In finding the right FSP for Proton, DRB-Hicom would evaluate three key criteria -- strategic, operational and cultural fit. A strategic fit will enable both parties to derive tangible benefits from the range of technology and products available, and ensure that Proton can achieve economies of scale from its domestic operations. DRB-Hicom would insist that the Proton badge and its technology would be expanded into the ASEAN markets first and global arena subsequently. The structures that exist within each company must be able to blend well so as to achieve seamless operation at Proton and the partner themselves. "As in any collaboration, a cultural fit would ensure a successful union. This 'chemistry' between the two parties would be critical in pushing Proton forward while enhancing the FSP's own operations," it said. DRB-Hicom also reiterated that Proton had plenty to offer to the eventual FSP. The FSP would have at their disposal Proton's own range of affordable cars to offer specific markets across the globe, such as Persona, Saga, Preve and Iriz -- which are manufactured to high production standards and meet global safety standards. Any carmaker partnering with Proton has the ability to immediately increase their production capacity through Proton's Tanjung Malim Plant in Proton City. The plant has a low utilisation rate presently, and optimising the use of the modern facility would also benefit the local workforce. Proton also has its own in-house research and development (R&D) team, as well as the lightweight platform technology of Lotus Cars UK. The combined engineering capabilities of Proton and the legendary Lotus Cars offer the FSP enhancements to their current capabilities, which would enable them to enhance their existing R&D capabilities. -- BERNAMA