Daihatsu Opposes Merger of Malaysian Auto Makers
Executive Summary
Daihatsu’s influence over Perodua’s manufacturing, sales and distribution operations overshadows Proton’s interest in merging with its domestic rival.
Daihatsu, a key stakeholder of Perodua, is backing the Malaysian auto maker’s opposition to a merger with domestic rival Proton.
“Perodua has given its view on this issue, and we respect that,” the Edge Financial Dailyquotes Daihatsu President Koichi Ina as saying during a news conference for Malaysian journalists at the Tokyo auto show last week.
Daihatsu, a unit of Toyota, owns a major, non-controlling stake in Perodua’s sales and distribution operation in Malaysia. It has a 51% equity interest in the auto maker’s Rawang manufacturing operation and has put its own managers in charge of the plant.
“Perodua is one of our highest priorities in the overseas market,” Ina says. “We would like to further strengthen our ties with Perodua.”
Perodua in October announced plans to enter a “strategic collaboration” with Proton, but Managing Director Aminar Rashid Salleh said at the time Perodua was not interested in a merger. “We have our own plans, going forward.”
Proton management sees potential merit for a merger on the grounds of industry consolidation. But an unnamed top Japanese auto executive tells the Edge: “In my opinion, a merger between Proton and Perodua won’t work because both companies have very different cultures and product lines.
“It’s better to keep the individuality.”
Daihatsu Senior Executive Officer Masahiro Fukutsuka tells reporters the Japanese auto maker plans to get Perodua more involved in product development, making cars catering to the regional market instead of producing only Daihatsu models.
“It’s under our 10-year blueprint for Perodua,” he says.
