PROTON SDN BHD

Car made by Proton

What Proton Has To Offer

Whoever ends up buying Proton will be getting a lot more than a car company. They'll receive:

Access to the southeast Asian market. The economies of China and India are booming, but the countries of southeast Asia are considered to be ripe consumer markets too. Malaysia, Thailand, and Vietnam are poised for growth, just the types of markets any automaker would like to enter. With Proton already present in each country, the suitor would gain instant access and could expand their presence accordingly.

Available manufacturing base. With automotive plants in play, Proton's suitor will be able to ramp up production and expand market share. New models can be built on Malaysian assembly lines, cars that one day could be destined for the profitable US market.

What A Suitor Can Give To Proton

The company buying Proton can offer several things including:

Strength - Proton has been selling cars for just the past 25 years, but they remain a tiny player in the global automotive market. Stiff competition means that Proton needs some sort of business relationship going forward or risk being surpassed by automotive giants with deeper pockets.

Visibility - Outside of the markets mentioned, Proton is a virtual unknown player. Collaborating or merging with another company will ensure that Proton will be around for another 25 years.

Technology - What Proton currently builds would not be able to be sold in some European markets or in the US. None of their current models can meet stringent emission and safety requirements; most of their vehicles are outdated and in need of a technological boost.

Some of what I have shared here is purely speculation, but it does drive home one point: the global automotive industry is consolidating and only the strong will survive. Going it alone will probably prove to be too costly for Proton, necessitating that a business partner be found as soon as possible.