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KUALA LUMPUR, Malaysia (AP) -- General Motors Corp. is seeking an alliance with Malaysia's money-losing national car maker Proton, the third foreign manufacturer to express interest, a government minister confirmed Monday.
Proton, which is losing money and market share amid mounting competition from local and overseas automakers, hopes to reverse its fortunes with a foreign strategic partnership.
Second Finance Minister Nor Mohamed Yakcop said GM, the world's largest automaker, has "shown interest" in Proton.
Germany's Volkswagen AG and France's PSA Peugeot, which are in talks with the government, are also keen to work with Proton, Nor Mohamed said.
"Their interests come in different forms, different proposals...so we have to see what is best for us, for Proton," he told reporters.
Nor Mohamed however, declined to specify if the three foreign companies were keen to take up a stake in Proton, which is 43 percent-owned by government investment arm, Khazanah Nasional.
"This is for us to decide. They (their proposals) are not identical. We are considering all three of them," he added.
Proton is expected to name a strategic partner for its manufacturing operations by March to help halt sagging sales and develop new models.
Malaysia is the biggest passenger car market in Southeast Asia. Gaining a stake in Proton, which has an underutilized auto plant, could help foreign carmakers consolidate their position in Asia's booming automotive market.
The Business Times earlier this month reported that GM plans to take up a small stake at Proton's holding company and acquire a stake in Proton's manufacturing arm. GM's proposal includes helping Proton build a car for the American market in five years, it said.
GM spokesman Rob Leggat, in an e-mail to The Associated Press last week, said the company considers Malaysia an important market and meets frequently with other automotive firms to discuss areas of mutual interest. He declined to comment on a possible tie-up with Proton.
Apart from foreign suitors, local companies Naza Group and Mofaz are also lobbying to buy into Proton. But officials have indicated the government favors a global partner for Proton.
Analysts have said a foreign alliance, which can provide Proton with technology and access to the international market, was crucial to Proton's survival and restructuring plans.
Proton's losses are expected to widen after the company reported a 250.3 million ringgit ($71.5 million) loss in the three months ended September 2006 because of lower car sales and rising expenses.