Rumors floating in the Southeast Asian press suggest that General Motors Corp. is expected to bid on troubled Malaysian state-owned auto maker Proton. The government has put its 43% stake in the venture on the market as Proton fails to remain competitive with not only foreign imports from Japan and Korea, but also smaller local rivals. GM may have an uphill battle as Volkswagen AG and PSA Peugeot Citroen reportedly are the preferred bidders. There are a number of scenarios floating in the news. Some include GM simply buying a stake in the company, and another involves GM partnering with its local distributor conglomerate DRB-Hicom. A purchase of Proton would give GM manufacturing capacity and market share in the growing Southeast Asian market. In turn, the additional market share would add to its lead over Toyota as the world's largest auto maker. In addition, a Proton acquisition could add another brand to GM's U.S. line up, Lotus, best known for its Italian-inspired sports cars.—Matthew Wurtzel
See story from the Associated Press via BusinessWeek
See earlier post about Proton from Dealscape
See earlier post about GM vs. Toyota from Dealscape
See GM Dealwatch
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