General Motors not ruling out stake in Proton

[Flybrian]

General Motors hasn't ruled out stake in Malaysia's Proton auto maker
Link to Original Article @ The Detroit News

Proton GEN 2

General Motors Corp. is still talking about a stake in Malaysia's unprofitable carmaker Proton Holdings Bhd., Chief Executive Officer Rick Wagoner said. He declined to comment on GM buying DaimlerChrysler AG's Chrysler, Bloomberg News reported today.

The Proton talks remain "extremely" preliminary, Wagoner said in an interview at the Geneva Motor Show. GM is in talks with Chrysler about a possible purchase, people familiar with the situation have said as recently as last week.

GM plans to increase global sales with new models and partnerships as Toyota Motor Corp. is poised to overtake the Detroit company as the world's largest automaker. Wagoner, 54, said in January GM would "fight" to regain the global sales lead if overtaken by the Japanese automaker.

Malaysian Prime Minister Abdullah Ahmad Badawi said today Proton is also talking to Volkswagen AG on a potential tie-up. Volkswagen Chief Executive Officer Martin Winterkorn confirmed the company is in discussions with Proton, declining to give details because the discussions are ongoing.

[Northstar]

I would much rather see GM buy Proton than Chrysler. Their cars may not be very good, but it would be extremely easy to re-badge Daewoos (which seems to be working everywhere else they're doing it) as Protons and call it a day. Plus, it gives them a cheap place to build cars. Buying Proton (assuming it is for relatively cheap) makes sense in as many ways as not buying Chrysler does.

[ellives]

I would much rather see GM buy Proton than Chrysler. Their cars may not be very good, but it would be extremely easy to re-badge Daewoos (which seems to be working everywhere else they're doing it) as Protons and call it a day. Plus, it gives them a cheap place to build cars. Buying Proton (assuming it is for relatively cheap) makes sense in as many ways as not buying Chrysler does.

It's all a numbers game. I really am uneasy about buying anything just because it's for sale.

[Northstar]

It's all a numbers game. I really am uneasy about buying anything just because it's for sale.

See, I think that Proton can do well for GM. If GM just uses Daewoos a rebadges them as "Protons" then it will be of very little extra cost for GM to do, they'll have a new place to build them at low cost, and I really don't see how it can't be profitable. Aside from buying them, GM would have little to no investment other than paying the workers and changing over the production line when new models are made.

[Dragon]

wish they would bought into it when the still owned MV Agusta

[dratnol]

See, I think that Proton can do well for GM. If GM just uses Daewoos a rebadges them as "Protons" then it will be of very little extra cost for GM to do, they'll have a new place to build them at low cost, and I really don't see how it can't be profitable. Aside from buying them, GM would have little to no investment other than paying the workers and changing over the production line when new models are made.

Does GM need the extra plant capacity for Daewoo? If not, this would be more of a hinder then a help.

[ToniCipriani]

Lotus! Lotus! Lotus!

[Duncan]

Lotus has got to be the driving factor here - I can't see any other reason why either GM or VW would jump all over the chance to get Mitsubishi's old technology and some really dodgy styling.

You ask how GM might produce something like a 12-cylinder Cadillac? Lotus can figure that out. They, after all, were the geniuses behind the DOHC LT5 V8 used in the Corvette ZR-1. Nothing, repeat NOTHING, is too difficult for the boys and girls in Hethel.

Good move, GM! Now don't screw things up again this time by insisting that they do everything "your" way (re: the last Lotus Elan, which switched from Toyota to Isuzu components at the last moment and basically shot the whole thing to hell).

[Z-06]

May be GM is in talks only for "Lotus"

[Robert Hall]

A deal with Proton would give GM more plant capacity and market share in Asia (and potentially eliminate/absorb a Chevywoo competitor in Europe).

[NOS2006]

I thought somebody already bought Proton..