OSK Research: Proton benefits from Mitsubishi collaboration

OSK Research Sdn Bhd said Proton Holdings Bhd would earn income from engine contract manufacturing and increase its plant utilisation after announcing the collaboration with Mitsubishi Motors Corp (MMC).

“We see this deal as a win-win situation for both parties, unlike the earlier Inspira rebadging deal, which benefited MMC more,” OSK Research said.

The research house also highlighted that there is still risk that certain aspects of the tie-up may not materialise, but the chances are fairly slim, given that the previous collaboration went smoothly.

Proton Holdings Bhd and Mitsubishi Motors Corp (MMC) are strengthening their collaboration via the joint production of engines at Proton, the contract assembly of Mitsubishi vehicles catering to the ASEAN market, and the sharing of
parts and components.

OSK Research also assumed that the deal with Nissan may have hit a snag, as the management had not provided any update on the status of the potential tie-up.

Earlier this year, Proton said it had entered a Memorandum of Understanding (MoU) with Nissan to conduct feasibility studies on a possible cooperation on the use of the latters platform and power train.

– Bernama