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MMC sells stake in Proton

Mitsubishi Motors Corp has sold its 7.93% stake in potential MG Rover joint venture partner Proton for 11bn yen or $99 million, realizing an 8bn profit.

Proton was established as a national champion car manufacturer by the Heavy Industries Corporation of Malaysia, Mitsubishi Motors and Mitsubishi Corporation - which is not, at least for the timing being, selling its own 7.93% stake. Proton is losing share in its home market and reported a quarterly loss last month – and joined MG Rover in announcing the two firms had signed a letter of intent to collaborate in unspecified product development, but which may involve the use of Proton's new Wira model's platform to support MG Rover's 45 Series replacement.

Meanwhile, Mitsubishi Motors said it would continue to supply Proton with components and technology technical cooperation would continue “as a responsive supplier and partner." (Source: Reuters)

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