The Saga saga: Proton's unusual arrival in the UK

We recently learned that Proton is planning an exports push that will take it into right-hand-drive markets, including the UK.

Perhaps surprisingly, Proton is much more familiar here than in any country outside its homeland of Malaysia, some 140,000 of its cars having found buyers here between 1989 and 2014.

This south-east Asian nation entered a period of modernisation and economic growth after its 1963 independence from the UK, and in 1979, deputy prime minister Mahathir bin Mohamad proposed enhancing its small car industry through the creation of a ‘national automobile enterprise’ – ‘perusahaan otomobil nasional’ in Malay, or Proton for short.

The new Heavy Industries Corporation of Malaysia (Hicom) wisely sought an experienced firm for help, and in 1983 a joint venture with Mitsubishi was established.

Proton had an HQ and a factory with an annual capacity of 100,000 cars built on a former palm oil plantation near Kuala Lumpur, while its Japanese partner lightly altered its new if conventional Lancer Fiore family saloon.

What became the Proton Saga was signed off in November 1984 following local durability testing and launched in July 1985 by bin Mohamad, who by that time had become prime minister. He bought the first one as a gift for his wife.

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Weirdly, UK sales had already been agreed before said launch, after 11 months of negotiations with Mainland Investments, a Warrington company that had 17 multi-brand dealerships in the north-west and was led by a former Lada GB executive, Harry Knopp.

Or at least that’s what Mainland thought! That December, Proton director Wan Nik bin Ismail stated: “We have not appointed anyone to handle our exports. We have not appointed a concessionaire for the UK either.” And when asked about Mainland: “We have no contact with this company.”

The confusion stemmed from Mainland signing a letter of understanding not with Proton but Edarlus Enterprise, a Malaysian company that claimed to be in charge of Proton exports. Bin Ismail denounced this claim, while Edarlus claimed to have been given permission by the Malaysian government to appoint concessionaires in the UK.

“Proton UK CEO Knopp expects to sign an agreement in Malaysia this week, but meanwhile the 103 UK dealers who have expressed interest could be unsettled by the uncertainty,” we reported.