The PSA Group now wants to buy Proton to expand into the Eastern market

While PSA is still in negotiations with General Motors to acquire the majority of shares in the Opel brand, the French group is embarking on a new expansion offensive. Apparently, the French manufacturer is negotiating with DRB-Hicom for the purchase of the Proton car brand.

According to the newspaper The Star, Chinese manufacturer Geely and the PSA Group are interested in acquiring the Malaysian car brand Proton. Both companies are interested in acquiring 51 percent of Proton, although Geely could be closer to buying the British manufacturer Lotus.

The acquisition of this company would allow it to increase its production and model range in Malaysia. The PSA Group and Geely were the only two car manufacturers that submitted offers to become Proton’s new strategic partner. PSA is ready to invest a substantial amount of money in Proton and build a new plant in Tanjung Malim, Perak (Malaysia). The French group has presented the best proposal to rescue and expand Proton’s operations in ASEAN (the Association of Southeast Asian Nations).

Everything points to PSA being the one to come out on top in this contest, since the Chinese manufacturer is not directly interested in acquiring Proton, but rather Lotus. “Geely does not need Proton. The Chinese manufacturer only wants Proton because of the technology incorporated in Lotus cars. Meanwhile, PSA, which is strong in the SUV segment, is not interested in Lotus,” says an unnamed source in an interview with The Star.

A possible purchase of Proton would allow the French manufacturer to make greater use of the Eastern market, where it currently does not offer a large number and variety of models. This deal would also be beneficial for Proton, as it would be backed by the second-largest car group in Europe; the Malaysian manufacturer has suffered numerous financial setbacks in recent years.

The option of Lotus and Proton going their separate ways has been under consideration since 2011. Now, their separation seems closer than ever.