ARTICLE ENTITLED: " STEERING PROBLEMS AT PROTON"

We ( Proton ) refer to the Article entitled, "Steering problems at Proton", appearing on pages 68 - 70 of The Edge ( the week of June 7 - June 13, 2010). With regard to the statement in relation to the proposed sale of 40% stake in Lotus Group International Ltd ("Lotus"),the Board wishes to clarify that over the years PROTON has received several unsolicited offers for a stake in Lotus. While PROTON takes cognizance of such offers, the Board wishes to state that Lotus is and continues to be a strategic entity within PROTON, as well as a technology catalyst for PROTON. The Board wishes to reiterate that Lotus is not for sale at this point in time. However, the Board wishes to add, that as a proactive business entity, the PROTON Group of Companies will continue to initiate and consider viable business opportunities and arrangements which will benefit and add value to the Group's interest. PROTON will make all relevant and necessary announcements at the appropriate time in accordance with the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

Malaysia's Proton says Volkswagen tie-up talks off

Malaysia's national carmaker Proton said Monday that Volkswagen AG will not collaborate with it because the German carmaker "has other priorities."

Proton said in a statement that Volkswagen "would be an interesting collaboration partner," but Volkswagen has declined during preliminary talks to partner up with Proton.

"Volkswagen confirmed that it currently has other priorities," the statement said. It did not elaborate, and a spokeswoman could not immediately give further details.

Proton said it would continue to work with other partners such as Mitsubishi and would aim to expand domestically and regionally.

State-owned Proton has been struggling to find a foreign partner to lift its fortunes. The government has insisted on maintaining control over the national corporate icon, making it difficult for Proton to seal any meaningful partnership.

Volkswagen last ended alliance talks with Proton in 2007 but later revived negotiations.

Proton managed to return to the black for the financial year ended March with a profit of 239 million ringgit ($72 million), from a loss of 302 million ringgit ($91 million) the previous year.

Revenue for the full year surged 27 percent to 8.2 billion ringgit ($2.5 billion) as Proton expanded its domestic market share to 28 percent from 26 percent the previous year. But its Chairman Mohamad Nadzmi Mohamad Salleh has said Proton has to focus on ramping up exports for its long-term survival.

String Rail - a low cost, low impact, high speed transport alternative

Trains might be a reasonably cheap transport option - but rail infrastructure is very costly to build. Monorail, maglev systems and high speed rail are more expensive again - and prices really skyrocket when you have to build bridges, tunnels and winding mountain routes, or cover difficult terrain. Which is why Anatoly Unitsky's String Transport Systems look like they've got so much potential.

 The system uses solid steel/concrete rails, reinforced with extremely high tension steel wires, to provide an efficient and smooth rail system anywhere between 3 to 30 meters above the ground. It's earthquake, hurricane and terrorist-proof, and capable of supporting vehicle speeds over 500 kmh, too, making it a genuine high-speed rail alternative, for a fraction of the price of road or ground rail alternatives. Fascinating stuff!

2010 Daihatsu Materia

The Materia is an oddly-shaped hatchback based on the current Daihatsu Sirion platform.Its unconventional and bold design draws polarises opinions but its boxy MPV like shape does give it a lot of interior room.

The practicality of its interior is further enhanced by a slideable rear seat that splits and folds to accommodate large and odd-shaped luggage. A relatively large boot and plenty of storage options also add to the car’s usability. The Materia competes primarily with Japanese rivals including the Suzuki Swift, Toyota Yaris and Honda Jazz.

Like the car’s exterior, the interior too goes against popular automotive design, highlighted by the central location of the instrument cluster on the dashboard. Other interesting interior features include illuminated speakers and handles, dash mounted tweeters and plenty of utility pockets and boxes.

The Materia comes with a radio, power windows, remote central locking with anti-theft immobiliser and air conditioning. The tall stance of the Materia translates into a relatively high seating position and easy ingress and egress.

The Middle East version is powered by a 1.5-litre engine which produces 102bhp, enough grunt for the light hatchback. There is a choice between a five-speed manual gearbox and a four-speed automatic transmission.

The front-wheel drive Materia also features an optional 4WD system, which automatically transfers power to the rear-wheel in case it detects loss of traction. There is no manual option to turn on the 4WD system. Safety kit includes ABS and dual front airbags and optional curtain and side airbags.

Maruti Suzuki RIII getting ready for a 2011 launch

Maruti's big ticket entry into the large MUV/MPV space, the RIII could come out as early as the first half of 2011. According toMaruti's big ticket entry into the large MUV/MPV space, the RIII could come out as early as the first half of 2011. According to sources, the company has already signed sourcing deals with its vendors and is looking at even exporting the Maruti's big ticket entry into the large MUV/MPV space, the RIII could come out as early as the first half of 2011.

 According to sources, the company has already signed sourcing deals with its vendors and is looking at even exporting the MPV.MPV. sources, the company has already signed sourcing deals with its vendors and is looking at even exporting the MPV.First shown at the 2010 Auto Expo, the RIII MPV will be a seven seater based on the SX4/Swift platform. Using an extended wheelbase and heavier componentry, the RIII is Suzuki's way of hedging its risks as competition in the small car market, both in India and other markets increases.

The RIII could feature not just Suzuki engines, but also engines from the Volkswagen group who own a 19.9 per cent stake in the company. Since Suzuki has access to only the Multijet diesel engine from its lone plant in India, which too is running at full capacity, it makes both mechanical as well as economic sense for Suzuki to consider a diesel engine from VW. One of the likely contenders could be the 1.6-litre common rail diesel motor from the upcoming Vento with 105 bhp, though this is a matter of conjecture at this point.

 Suzuki's 1.2-litre K Series engine or its 1.6-litre VVT engine from the SX4 could be the most likely petrol powerplant. According to sources, over 20 engineers had worked on the concept and that since the Auto Expo, the company is still to finalise the footprint and other engineering alterations based on customer feedback and response.