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Proton will seek to leverage performance, and its links to Lotus, in an effort to lift the brand above the realm of cheap and cheerful. And the Australian arm of the Malaysian carmaker is providing the blueprint for the badge.

According to local Proton boss, John Startari, the long-awaited replacement of the Satria GTI will have a more important role to play than simply grabbing hot hatch sales. Wearing the maker's R3 badge ("R cubed" says Startari), the revised three-door will spearhead the adoption of R3 as a premium variant for the maker's growing range of models.

It will also be a new calling card for the brand, suggests Startari.

"The R3 thing is an initiative from here [Australia]", Startari told the Carsales Network.

"Proton has R3 product in Malaysia, but we're putting in place an R3 product with an increase in performance. They basically have body kits, interiors and things like that. We need something that is [ADR] compliant in terms of an increase of horsepower... Because the [Satria] chassis can certainly take it.

"R3 basically becomes our HSV or FPV -- for want of a better term. It's our motorsports arm. Race Rally and Research is where it came from," Startari explained.

According to Startari, Proton Australia has developed a Gen2 'mule' that is the factory's mechanical 'benchmark' for the first R3 model. The local Proton boss says the Satria R3 concept displayed at the Melbourne motor show earlier this year is essentially the complete package visually, but the mechanical upgrades are still to be finalised.

"It's [Satria R3] got to have more power and obviously the quickest way to do that is turbocharging," Startari said.

"We had a Gen2 running around that we put a turbocharger on -- there were no reliability problems with the car. Obviously we can't go fitting aftermarket parts here, so that car was sent to the [Proton] motorsports division, R3, for R&D approval and that's the process that we're going through at the moment."

Startari says the power target for the Satria R3 is over 100kW but cautions that turbocharging is only one solution.

"There are other options [than turbocharging] on the table.

"It [the power output] has to be 105[kW] and above and we can certainly get there. But you have to build in a factor for reliability -- the car and the engine can readily take over 120kW, but you need that safety. The car appeals to the market that intends to modify it, [so] you've got to build in safety factor there as well.

Startari says Lotus will have a hand in the development of the R3 products. R3 and its performance credentials will play an important part in the evolution of the brand, he says, and the original Satria GTI points out why.

"[Despite the fact] Not many people had driven one, it [their impression] was always positive. It [Satria GTI] was the first car to carry the Lotus badge on it in Proton's range and everyone raved about it. [With the R3s] We're trying to build that credibility back into the brand. We won't sell a lot of R3s but what it will do for the brand, money can't buy.

Startari says the Satria R3 and other R3 models will sell for under $30K. He agrees that figure is currently a glass ceiling for the brand.

"$29,990 is really about it. R3s are planned to come in under that, but our new MPV (see separate story) would have to come in well under that [also].

"I don't think we could ask today any more than the $29,990 for a Proton, regardless of what it is -- even if it was a larger car.

Startari says the Lotus brand will not be devalued via unsuitable matchings, however. There's no Lotus Persona in the wings ready to pounce.

"The Lotus brand obviously carries a lot of prestige, but not for one minute would you put a Lotus badge on a Persona and then try and get another $10,000 for it -- it just doesn't work that way.

"If you want to start doing performance variants [of Protons] and going way out there, that'd be a smarter way to go... But, you can't take them in their current form -- you've gotta do something radically different.

"The Lotus brand is built on performance through light weight, so those [R3] cars don't fit that criteria. There's [still] a lot of issues to go through," Startari said.

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