Report – PSA might take over Proton, but Lotus could end up with Geely image

Let’s take a step back from the swirling rumors about Opel’s sale to the French PSA Group and see the latter being rumored to take over an entirely different entity – Malaysia’s Proton.

According to the latest reports on the matter, the French group has officially confirmed it’s in talks with Proton and might invest into setting up a new factory in Malaysia. “We are in the process of negotiation and have no further comments to add at this time,” commented a PSA spokesperson. But interestingly enough, Chinese manufacturer Geely, which has Sweden’s Volvo but also set up a completely new brand – Lynk&Co – recently, is also allegedly interested in overtaking Proton but may end up being offered the Lotus brand alone. And apparently PSA is not interested in Lotus so there’s no acquisition battle going on.

Proton has been actively searching for an investment partner after receiving help from the Chinese government six months ago due to length financial problems. Allegedly, PSA’s strategy for the new acquisition would involve the construction of a new production facility in order to support its increasing sales in the South East Asian market – with reports citing Proton’s production capacity under PSA soaring to up to 2 million units from a mere 150,000 examples currently. Proton is currently owned by DRB-Hicom, a large Malaysian conglomerate, who bought the assets six years ago during another period of financial trouble.

Via Autocar