Malaysia’s leader said that national carmaker Proton, criticized for shoddy workmanship and poor after-sales service, should tie-up with a strong foreign partner in a joint venture to remain competitive.
The comments by Prime Minister Abdullah Ahmad Badawi came amid news Wednesday that Proton has been sued by its former Chinese joint-venture partner, Goldstar Heavy Industrial Co. Ltd., for 1 billion yuan ($146 million) in compensation for breach of contract.
Abdullah indicated in an interview with The Associated Press that Proton should be willing to give majority control to a partner in a joint venture if necessary but refused to be drawn on specifics.
Asked if a foreign partner can hold a majority 51 percent stake, he said: “It doesn’t matter as long as Proton, the mother company, is entirely ours.”
Proton needs foreign partner