Volkswagen and Proton are still in talks and it could end up with Volkswagen AG buying as much as 30% stake in Proton, or nothing at all.
Volkswagen and Khazanah Nasional officials met at the Proton Holdings Bhd HQ yesterday to discuss the matter.
Proton officials said that if there is no decision within a few days talk would be called off.
The deal is said to be involve MYR1.65 billion exchanging hands if it goes through. That translates to about RM10 per share. Proton shares were worth RM9.25 on the market on Thursday.
It’s said that the terms of the sale will involve Volkswagen AG gaining management control of the company.
Foreign CEO anyone?
Source: The Star, Yahoo News
Looking to sell your car? Sell it with Carro.
i hear the deal will be concluded and announced today after the bursa closes. shares expected to surpass RM10. at 11 am last price around RM9.10 after opening at HIGH OF RM10. buy and get out on Monday.
Finally…With that atlease it will boost our confidence in buying proton cars…btw, Waja actually looks like one of the VW model…cant recall the model…not really Passat…anyone?
but badawi oredi said the nxt ceo has to hv 12yrs experience wif proton mar. so kenot hv foreign ceo oredi lor.
wooo, a Golf Satria, anyone? droolzzzz… ;)
oliviasy said,
July 29, 2005 @ 11:59 am
but badawi oredi said the nxt ceo has to hv 12yrs experience wif proton mar. – I said to get 1 with other car manufacturer for 8 years…still stronger than those who "served" 12 years in proton. atlease none of them has really set the mindset of they new car to "My First Lotus" :p
Andhra seeks CBI probe into Volkswagen scandal
TIMES NEWS NETWORK[ FRIDAY, JULY 15, 2005 01:36:38 AM]
HYDERABAD: The Volkswagen-Andhra Pradesh affair is snowballing into a controversy. Andhra chief minister YS Rajasekhara Reddy on Thursday sought a Central Bureau of Investigation probe to trace the Rs 11-crore equity investment the state made in Vashishta Wahan, which is supposedly the authorised India SPV of Volkswagen AG. Mr Reddy has also decided to change the portfolio of major industries minister B Satyanarayana, who is in under cloud in the Volkswagen issue.
tuiz……..gohsn also foreigner. see all the good he has done for nissan.
more like.. golf gti lotus tuned.. passat lotus tuned… etc etc
In bolehland anything can happen, lets hope for the best for Proton to turn around quickly so we can enjoy AFTA sooner. But I think it wil take VW at least five years to change things, if the deal goes through.
Only one thing that concerns me… VW's image has been tarnished by recent corruption allegations within the management. Read below:
————————————————————-
http://www.edmunds.com/insideline/do/News/article…
VW Corruption Crisis Deepens; India Plant is Postponed
Date Posted 07-05-2005
WOLFSBURG, Germany — Volkswagen's escalating corruption scandal has prompted the automaker's biggest shareholder, the German state of Lower Saxony, to demand a full investigation into the matter.
VW has been hit by allegations that former staff took illegal payments for work in India and Angola and set up a network of front companies to get supply contracts. Several top executives have already left the company, and VW has put its plans to build a plant in India on hold until the issue is resolved.
German prosecutors are investigating and VW last week called in auditors KPMG to review the scandal, which last week claimed its most high-profile resignation to date, the powerful works council chairman Klaus Volkert. The Süddeutsche Zeitung newspaper alleged the company for years offered improper inducements — including pleasure trips and the services of high-class prostitutes — to senior labor representatives in return for their support on key issues.
The affair is putting pressure on the company's head of personnel, Peter Hartz, who has had dealings with some of the officials currently being investigated. A probe has already begun into Skoda's former personnel chief Helmuth Schuster (see Inside Line), who had been running the India project until his abrupt departure last month.
What this means to you: Something very rotten is going on in the squeaky-clean German car industry. Only time will tell how deep the corruption reaches, but it seems to start pretty close to the top.
————————————————————-
Now, if this issue be true, and knowing how Malaysia works with 'no corruptions', this might have some serious repurcussion to the automotive industry in Malaysia. I mean, having a 'dodgy' management is bad enough. But when two parties with similar style of dodgy management join up, this might just be the worst thing to happen to the already flailing automotive industry in Malaysia!
This VW business about corruption and all that, is a norm in the industry, is a matter if you'll get caught or getting away with it. Its as they say "part of the business".
So, too bad VW got caught, a little fine, a little punishment, a few heads roll and they just get on with their jobs. The End.
If that's the case, and just accept all corruption going on as a norm, then why is everyone too banged up about the AP saga? Why is everyone angry and fed up? Don't you think that it is 'part of the business' as well?
Well, call me naive then. or whatever you want. but the automotive industry in malaysia is a bit too f**ked up for us to say that it's just 'part of the business'…
foreign ceo?….
YES PLEASE!
sell PROTON a.s.a.p if we can't compete & open the market
i speculate its an unlikely event.
proton is a national carmaker. good or a bad one, u cant deny it. imagine faflling into the foreign, itll be like a shame. i wont able to lift my head anymore. altho for economic purpose,i rather close proton down than sell it. yeah i know im not the politician at the end of the day to call the shots but a one man voice. now
its obvious, VW is going in for a world domination . lol
8555 said,
foreign ceo?….
YES PLEASE!
The former Rover CEO is looking for a job…. :)
there will be no way to close down proton …
BANKS got too many stakes into the automotive systems … loans and investments …
if they close down – spells for real trouble for the entire country as malaysia has dragged its feet far too long [20 yrs] into Proton …
loss of jobs ?
u cannot imagine the catrostophe … since there are more bad things going to befall, better find a way to salvage the car maker b4 more ppl die as a result of the Proton's fall
30% equity stake is small if you ask me. My feeling is others have asked for at least 40%. Japanese would want no less than 50%. No way management control can be negotiated. No major would ever compromise on this.
Link here from BBC website, says take over close to Proton deal.
here it is
http://news.bbc.co.uk/1/hi/business/4727607.stm
better do it fast if these still treat proton as anak emas……
that proton b kam losak…… or samseng…..
it mean it the protection is aprove we all must buy proton car… if we want buy 2nd car (imported car)….
How about giving a non Bumi Malaysian a chance as CEO? They have also been very supportive to the national car, most of them are using Proton cars too. Either Malay, Chinese, Indian, Iban, Dayak etc – well we are brothers and sisters all together.
If it's really for the sake of national pride, it's better to have a Malaysian CEO rather then a foreigner.
I could be wrong….
I totally agreed with "Cre8tif".
If proton failed, the whole malaysia will be affected. Thousands will loss job and many fresh grad with have less place to search for jobs. Even you are not in Automotive industries you might also been affected. Those who loss their jobs might get support from Govt. (NEP) and we are the one that will give our money to them. (non NEP)
Just my 2 cents
Here is the way I look at it. Proton is basically valued at close to NTA which means that it there is no premium assigned to the protection it enjoys. It sounds like a raw deal until you realized that Petronas has been subsidizing Proton which means that Proton has always been a declining value project and the valuation actually says it is neutral on future value creation/decline. Volkswagen basically assumes that if Proton were to lose its protection, that it will be free to compete on equal footing with everyone else or better. This is actually a generous assumption considering the AP scandal and how the government have always distorted the market.
Take the deal!!!!!
i hope they buy and make better proton
In my opinion, Khazanah surely will sell 30% stake in Proton in years to come to VW. Pak Lah's policy clearly towards diversified economy with agriculture as the main core of economy activities. Pak Lah's approach is to reduce deficit. He will make a move to cash in some money including selling Proton's stake. Moreover, Temasek also own shares in Proton. So what's the pride we have in Proton? It's our effort in proving that we have the capabilities. The same goes with Petronas. 10 years in F1 is enough. Next year, BMW taking over Sauber. Petronas maybe not in this field anymore. Hey, we should be proud. But not to sacrifice the money we have just for a name. Think about it.
Proton is cash rish tau! sapa dapat untung… with all the tanah & everything… just pasal the saham under perform, ze germans think they can get it for free ka? jual, tapi mahal2 la… (we buy now, rm9, we sell after the G agree to the deal, which is Rm15)hehhhh *laughing my way to the bank*
proton can sell their stake, but there should a certain guideline, of course gosh did good with nissan, but did u know how many people loose their job in the process, if i'm not mistaken, he closed almost 60% percent of the manufacturing division, of couse the one that was closed must be the one which is not performing, but in japan, there is still lots of other option, just imagine if it happens here, where are all the protonians going to work….., if vw going to take over proton, they will bring along their supplier, of course, good quality, larger supplier means cheaper price, but what's going to happen to all the local vendor or supplier???? Have we ever think about that???
A guideline should be imposed before any takeover should take place in order not to jeoperdize the life of thousand of people who depend this industry for a living….
Hamdi, macam kerja dgn vendor saja? sapa? AHP ker? or USRA ind?
if the vendor/supplier cannot perform, they have to bungkus… that's the rule of business… if u dont perform in ur work, do u think ur boss is so nice will keep u in the company on the job just because he cares about ur parents, wife and children? sorry lah… if u cant perform, off u go, get fired!!! wat makes u think he'll keep u when he can get a better more productive worker at the same salary?
this is business, not charity organisation… if u think we have to jaga their mangkuk nasi, then we have to suffer getting lousy quality car parts but paying a heavy price on it… then who'll watch over my mangkuk nasi?
who's the mangkuk ayun now?