PSA, Renault, Suzuki Signal Interest in Proton Investment

The owner of ailing Malaysian carmaker Proton Holdings Bhd has received interest about possible investments from PSA Group, Renault and Suzuki, sources tell Reuters.

Proton has struggled for years with slumping sales and a reputation for poor quality. The company was acquired in 2012 by Malaysian conglomerate DRB-Hicom Bhd, which has been shopping for a Proton partner ever since.

The Malaysian government extended 1.5 billion ringgit ($365 million) in aid to Proton earlier this year. The government also has ordered the company to find a strategic partner by next summer. Reuters’ sources say DRB-Hicom may agree to sell a majority stake in the carmaker.

Previous attempts to find partners have failed over management control. Proton was launched in 1983 as a joint venture between the Malaysian government and Mitsubishi Motors Corp. to bolster the country’s manufacturing base. The company's domestic market share had plunged from a peak of 70% to about 15% today.