Malaysian automaker Proton Holdings will collapse unless it finds an international partner, according to the automaker’s founder, Mahathir Mohamad, who set up the company more than two decades ago. Mahathir recently told Bloomberg that that the automaker will be unable to hang on much longer without an international business partner.

“At the rate it is going, it’s not going to last long,” said Mahathir. “Proton is reporting losses all the time, and they still have a lot of cars which they cannot sell.”

While Proton does not sell cars in North American, the most important piece of the puzzle to car enthusiasts, is the future of Lotus Group, which was acquired by Proton 1996. Proton said it would not consider selling Lotus, even if the financial situation worsens. And Proton’s financial woes appear to be effecting Lotus Group’s plans to expand its product line, since British sportscar maker recently announced several product delays, including pushing back its Esprit replacement to December 2009. Lotus was previously planning to launch the car in 2008.

Proton has been seeking a foreign partner since Mitsubishi ended more than two decades of investment in the company in January 2005. Proton has been in talks with Volkswagen, however, VW ended talks in January because the companies couldn’t agree on issues including control of the company.

## Source: Bloomberg ##

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