GM may bid for stake in Malaysian firm

General Motors Corp. may bid for a stake in Proton, Malaysia's biggest automaker, which is seeking a strategic partner to help reverse its dwindling fortunes, a report said Wednesday. Since late November, GM officials have met several times with Proton management and shareholders and may make an offer as early as this month, the Business Times quoted an unnamed industry executive as saying.

GM, the world's largest automaker, has proposed to take up a small stake at Proton's holding company as well as acquire a stake in Proton's manufacturing arm, the executive told the daily. GM's proposal includes helping Proton build a car for the U.S. market in five years, he said.

Malaysia is the biggest passenger car market in Southeast Asia. Gaining a stake in Proton will help GM, which has operations in Thailand, South Korea, India and China, consolidate its position as a key player in Asia's booming automotive market, the report added.

GM spokeswoman Renee Rashid-Meren told The Associated Press on Wednesday that the automaker "declined to comment on rumor and speculation." More at Detroit News