Proton selling Lotus, reported from Malaysia

Proton selling Lotus, reported from Malaysia

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Ozzie Osmond

Original Poster:

21,189 posts

253 months

Friday 28th December 2007
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KUALA LUMPUR, Dec 27 (Reuters) - A Malaysian car-maker has approached the country's biggest auto firm, Proton Holdings Bhd, to buy Proton's controlling stake in British sports-car subsidiary, Lotus, the Malaysian Reserve said on Thursday.

Proton (PROT.KL: Quote, Profile, Research) bought 63.75 percent of Lotus in 1996 for 40.64 million pounds ($81 million), the daily said. Lotus make sports cars and also runs an auto engineering consultancy.

The approach followed the collapse last month of a proposed alliance between Proton, a struggling state-controlled firm, and Germany's Volkswagen (VOWG.DE: Quote, Profile, Research). Proton shares have lost a quarter of their value since the talks broke down.

"It is believed the interested party...expressed a desire for the controlling stake in the high-performance engine manufacturer after the failure of Proton-Volkswagen partnership talks late this year," the Malaysian Reserve said, quoting unnamed sources.

The financial daily did not name the bidder nor give an offer price.

Proton shares last traded at 3.70 ringgit each.

(Reporting by Mark Bendeich; Editing by Valerie Lee)

retrorider

1,339 posts

208 months

Saturday 29th December 2007
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david richards should buy it...

Scuffers

20,887 posts

281 months

Saturday 29th December 2007
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retrorider said:
david richards should buy it...
that would be the finnal death nail for Lotus...

Oilchange

8,767 posts

267 months

Monday 31st December 2007
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You know I have always thought Richard Branson seems to enjoy challenges. Wonder if he ever thought about the car industry...

anonymous-user

61 months

Friday 4th January 2008
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Educated guess from a Malaysian resident
The Volkswagen deal was never going to fly, there is no way that Volkswagen could get control of the supply change management, parts are made by local companies, with long term, sales vendor-development agreement, and the Malaysian government would never let this change, so Volkswagen would never be able to improve quality (as in (Skoda)
There are three Malaysian car makers, Peradua, who make old Diathus (how do you spell that, never looked at one long enough to notice).
And Naza who make CKD Kia's and Volkswagen’s, my bet is that the bidder would be Naza, as this makes some sense in the local economy.

groomi

9,323 posts

250 months

Friday 4th January 2008
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Oilchange said:
You know I have always thought Richard Branson seems to enjoy challenges. Wonder if he ever thought about the car industry...
He enjoys challenges and making money.

He doesn't gamble.

Tuna

19,930 posts

291 months

Saturday 5th January 2008
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groomi said:
Oilchange said:
You know I have always thought Richard Branson seems to enjoy challenges. Wonder if he ever thought about the car industry...
He enjoys challenges and making money.

He doesn't gamble.
You could argue that Lotus are less of a gamble than most - they have a solid engineering business and a marketable selection of cars that are very successful for a niche manufacturer. What they don't have is any consistency of management and robust financial backing - they manage to lurch from one crisis to the next and when there aren't any crises around, they invent their own. That said, when they are in a tight corner, they tend to come out fighting and produce the most interesting new developments.

groomi

9,323 posts

250 months

Saturday 5th January 2008
quotequote all
Tuna said:
groomi said:
Oilchange said:
You know I have always thought Richard Branson seems to enjoy challenges. Wonder if he ever thought about the car industry...
He enjoys challenges and making money.

He doesn't gamble.
You could argue that Lotus are less of a gamble than most - they have a solid engineering business and a marketable selection of cars that are very successful for a niche manufacturer. What they don't have is any consistency of management and robust financial backing - they manage to lurch from one crisis to the next and when there aren't any crises around, they invent their own. That said, when they are in a tight corner, they tend to come out fighting and produce the most interesting new developments.
You could also argue that the entire car industry is a gamble. Illustrious names fall by the wayside as they can't make money, huge corporations like Ford and GM are heamorraging (sp?) money and Govermnents all over the world are making the industry public enemy number 1.

deevlash

10,442 posts

244 months

Saturday 5th January 2008
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Ozzie Osmond said:
"It is believed the interested party...expressed a desire for the controlling stake in the high-performance engine manufacturer
uhm, lotus dont make engines do they?

grumbledoak

31,855 posts

240 months

Saturday 5th January 2008
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deevlash said:
Ozzie Osmond said:
"It is believed the interested party...expressed a desire for the controlling stake in the high-performance engine manufacturer
uhm, lotus dont make engines do they?
Beaten to it! Reuters' reporters aren't what they used to be, clearly.

groomi

9,323 posts

250 months

Saturday 5th January 2008
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deevlash said:
Ozzie Osmond said:
"It is believed the interested party...expressed a desire for the controlling stake in the high-performance engine manufacturer
uhm, lotus dont make engines do they?
Probably a dodgy translation from 'Motor Manufacturer'...

marshalla

15,902 posts

208 months

Saturday 5th January 2008
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toyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyotatoyota

PLEASE!


Yes, I know they're not Malaysian, but when they were involved with Lotus in the past, some of the most interesting development happened.

Edited by marshalla on Saturday 5th January 22:49