Report: Malaysia's Proton plans to make 'Islamic cars' with Iran, Turkey
KUALA LUMPUR, Malaysia: Malaysian national carmaker Proton plans to team up with companies in Iran and Turkey to produce "Islamic cars" for the global market, a news report said Sunday.
Proposed by Iran, the collaboration would include installing features in automobiles such as a compass to determine the direction of Mecca for prayers, and compartments for storing the Quran and headscarves, Proton's Managing Director Syed Zainal Abidin told national news agency Bernama.
"What they (Iran) want to do is to call that an Islamic car," he was quoted as saying while on a visit in Iran.
"The car will have all the Islamic features and should be meant for export purposes. We will identify a car that we can develop to be produced in Malaysia, Iran or Turkey," Syed Zainal said.
The report didn't give further details.
Syed Zainal and other Proton officials couldn't be reached Sunday for comment.
Proton is aggressively seeking to raise exports and boost sales as its domestic market share fell to 23 percent, from about 60 percent five years ago.
The state-owned carmaker has been in talks with Germany's Volkswagen AG and General Motors Corp. of the U.S. about a possible alliance to turn around its fortunes.
Proton reported a loss of 591.36 million ringgit (US$169 million; €118 million) in the 2007 financial year. In the three months ended June 30, it posted its fifth quarterly loss of 46.75 million ringgit (US$13 million; €9 million).
For years, Proton thrived in a protected environment in which high duties were imposed on imported vehicles, forcing many Malaysians to buy Proton cars. But duties have been slowly lowered in line with a regional trade agreement, and more Malaysians are buying imported vehicles.
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Proton, a car company in Malaysia has announced that it plans to begin building a car specifically for Muslims.

They will work with other car makers in Iran and Turkey to build an "Islamic" car, which would the first car of its kind and will be unlike any other car on the world's market.

"What they (Iran) want to do is to call that an Islamic car. We will identify a car that we can develop and produce it in Malaysia, Iran or Turkey. For Proton, we are more than happy because we have products that we can share," said Syed Zainal Abidin Syed Mohamed Tahir, the chief executive of Proton. The idea was originally proposed by Iran.

Features are to include a compartment for the person's headscarf and Qur'an as well as a compass that will constantly point in the direction of Mecca, Saudi Arabia.

Currently, Volkswagen which is headquartered in Germany, is in negotiations to partner with Proton and American automaker General Motors Corporation. Proton has been posting financial losses, with over US$160 million lost in 2007 alone.