Proton eyeing Renault-Nissan involvement

Malaysia's Proton Holdings Bhd, which is set to take a 25 per cent stake in Renault Formula One (F1) team, is seeking to expand its relationship with the Renault-Nissan alliance into passenger cars and potentially as a strategic partner to the national auto company. Plans are afoot to have Renault-Nissan involved in the Proton global car, named Emas, which is slotted for production by 2012. Furthermore, industry sources indicated that Proton would be looking at the alliance to provide a model to replace the Perdana, which is used as a government vehicle. But talks of partnership or even Renault taking a stake in Proton will only take off once Proton finalises its purchase of the stake in the Renault F1 team which would see the racing team renamed Lotus-Renault. The acquisition of the stake by Proton in the Renault F1 team is expected this week. Renault F1 is 75 per cent owned by Genii Capital Partner. It’s unsure if Proton will gradually want to increase its share of the team in the future. The entry of the Proton-owned Group Lotus as part owner of a team in F1 for next season is seen as an important step towards rebuilding the Lotus name globally. Proton was involved as a sponsor in the just-completed season of F1 with the Lotus Racing team run by AirAsia CEO Tony Fernandes but both Proton and Fernandes had a falling out which has led to a legal fight of the use of the Team Lotus name in F1 next season. The purchase of the stake in the fteam will enable Proton to get waist deep to internationally position the Lotus name as a means to compete with the big boys in the sports car arena. It has been reported that Lotus would need to spend 500 million ringgit (US$159.7 million) to change the direction and fortune of the company and using the F1 platform had been identified as a key component in its global branding and marketing expansion. Lotus at the Paris Motor Show unveiled five new concept cars aimed at improving the fortunes of Proton-owned Group Lotus. The five cars shown to the world for the first time were the Lotus Esprit, Elan, Elite, Elise and Eterne. Group Lotus was reported to have set its sights on increasing sales to 10,000 units a year compared with the 2,000 units currently with the launch of five new models. Lotus is looking to strengthen its presence in Asia, the Middle East, South Africa, South America and eastern Europe markets. Proton is said to believe that money into the sport is not a one-way street as it sees financial benefits by getting directly involved in the world’s most prestigious motor sports.By purchasing the stake in the Renault F1 team, Proton will be buying into a team that finished fifth in the constructors championship in the F1 2010 season.-asianewsnet.net