KUALA LUMPUR, Malaysia

Malaysian national carmaker Proton said Monday it plans a revamp that will give it more flexibility to form alliances with foreign partners after reporting a 55 percent jump in quarterly profit.

The maker of the Waja and Pesona sedans and the Exora seven seater multipurpose vehicle posted a net profit of 84.7 million ringgit ($27 million) for the quarter through June.

Revenue rose 24 percent year-on-year to nearly 2.3 billion ringgit ($735 million) thanks to stronger-than-expected car sales, which were up 17 percent to nearly 40,000 units.

Chairman Mohamad Nadzmi Mohamad Salleh said Proton aims to set up four strategic business units as part of a restructuring to boost its operations and make it easier for the state-owned company to tie-up with foreign automakers.

He said some parties are keen to cooperate with Proton in manufacturing or engineering, without having to take an equity stake in Proton as "they don't want to manage the brand."

"We will be undertaking a big restructuring to be more efficient, leaner ... and to give more flexibility to form strategic alliances that don't really involve the whole group," said Managing Director Syed Zainal Syed Mohamed Tahir.

Proton declined to give more details, saying the proposal will be firmed up in the next few months and implemented in the next financial year.

The car maker returned to the black in the financial year ended March but is under pressure to bolster exports for its long-term survival. Analysts said it would need to find a global partner if it wants to survive in the long-run.

The government's insistence on maintaining control over the national corporate icon has made it difficult for the carmaker to seal any meaningful partnership.

It said in June that Volkswagen AG declined to collaborate because the German carmaker has other priorities -- the second time talks between the two have failed. Volkswagen later inked a deal with Malaysian auto group DRB-Hicom to assemble and manufacture VW cars in the country.

Syed Zainal said Proton targets 20 percent revenue growth for the fiscal year through March 2011, and market share to rise to 33 percent from below 30 percent last year. It expects to sustain sales with a new upgrade to the popular Waja sedan in October.

Proton is also working on a hybrid electric vehicle, which should be ready for testing by the end of the year before deciding whether to embark on mass production, he said.

By EILEEN NG