DRB-HICOM explained to the media yesterday the rationale behind it’s proposal to the government to purchase Proton shares owned by Khazanah Nasional. The proposal was on a preliminary level, and submitted a few weeks ago on its own initiative without an invitation from the govenrment, was yet to receive a response from the Government.
DRB-HICOM used to own more than 27% of Proton before selling that stake to Petronas in the year 2000. Now, Petronas owns 7%, while other majority shareholders are Khazanah Nasional which owns 43%, while the EPF owns 12%. Khazanah Nasional’s 43% is actually over the limit that Bursa Malaysia has set for shareholding, but being the government investment arm and all, an exception was made until Khazanah can find someone to buy off the excess shares.
DRB-HICOM says it submitted the proposal because it felt it can assist the development of Proton, especially the distribution and components side. On the matter of distribution, DRB-HICOM owns Proton distributor Edaran Otomobil Nasional Bhd.
DRB-HICOM also has no issues with a foreign partner, referring to the recent news on the government considering letting a foreign partner having a controlling stake in Proton’s manufacturing arm.
Sources:
DRB-HICOM has plans for Proton
DRB-HICOM: Proton stake offers synergy
Related Posts:
DRB-HICOM confirms Proton share purchase talk
Mofaz interested in Proton?
Looking to sell your car? Sell it with Carro.
yea 1st!. :)
hope this would help proton produce a good car as others.
As I said before, EVERYBODY is looking for a piece of CAKE.
Nobody is REALLY helping nor Could be able to Help P1 lah.
Orang Buta pun boleh NAMPAK lah.
Liar liar liar…….
DRB- HICOM ?
Kalau you boleh, dulu mesti sudah berjayalah mengapa tunggu sampai SEKARANG.
Jangan TIPUlah. I don'T believed you can actually SAVE Proton now. No Technical Skills, No Money, No Mampower,…only Cakap kosong.
Same goes to MOFAT and others. Stop dreaming.
In Bolehland, only CRONY will be given chance to get EASY money.
Sigh
auctioncenter2u, "cold down" dude, this is their talk show. Likely outcome for P1 are: –
1. Have tie-up with foreign partnership arrangement similar to P2.
2. Contract assembler.
BULLSHIT. Recently LOI LOI here and MOU MOU there ……. , now TALK-TALK here and and in future, VSS-VSS here and lelong-lelong there
Joe Ooi, How the hell you know I am Holding a PARANG now?
I though to use A MACHINE GUN too. But since you said that, I gave you some face lah. Okay only Talking no PArang now.
I personally don't believe DRB-HICOM can save Proton. They are merely assembler and distributor of cars and know nothing about cars. I doubt their ability in turning Proton fortune. I still believe a reputable car manufacturers such as VW, PSA or even GM can lead Proton better. It's just another trick by the G.
auctioncenter2u said,
"Joe Ooi, How the hell you know I am Holding a PARANG now?"
———————–
I don't mean the above but just implied this "talk show" try to "decieve" the public for the reason(s) best known to them (DRB-HICOM).
Look at this article dated 11 April 1997 published by Asiaweek
http://www.asiaweek.com/asiaweek/97/0411/aa7.html
Title: "Proton’s Worldly Ambitions Under its new boss, Malaysia’s top carmaker gears up for global rivals"
"Toyota. Ford. Mercedes Benz. Proton? Malaysia’s national car wants to be world class. Saleh Sulong(interview), the new boss of Proton’s parent DRB-Hicom, aims to make it so."
After approximately 10 years, P1 even can't survive in domestic market let alone alone to be world class! DRB-Hicom want to help P1, then they want to repeat the history again!
Most of Bolehland public are "short memory" but internet overcome this "shortcoming"! Stop cock talking now!
Wah, Joe Ooi! you still remember it since 1997.
Actually, I was joking on the PARANG issue. Don't be serous on it. :P
LOL You are superb!
First of all, you need to understand that there are two 'department' government want to sell i.e. 1) Proton Holding and 2)Proton Manufacuring.
Previously DRB bought Proton (for both dpt) and they later found out they did nto have the expertise and enough fund to help Proton in production. Coupled with 1998 crisis, DRB have to sell Proton. Tun Mahathir did not want Proton to fall into foreigner, so Petronas came to resque.
Now, DRB only wants the Proton Holding not the Manufacturing. I reckoned DRB will team up with Volkswagon since currently DRB have some sort of relationship with VW via Audi. Coincidentally Audi's is distributed by one of EON's subsidiary. So the deal make sense. Compared to Sime Darby, it does not make sense since Sime Darby also assemble and distribute BMW, which is one of VW's major competitor. I don't think VW will agreed to team up with Sime.
Naza probably will teamed up with PSA-Peugout if the VW deal did get through. Naza have a good relationship with PSA, so it make sense if Naza buy Proton Holding and PSA buy Proton Manufacuring. But I believed, the first choice for govt is still for the VW option.
Personally I believed DRB-VW will succeed in their bid. DRB will handle the distributions while VW will focus on manufacuring including R&D, design etc. VW also will assembled VW brands here to penetrate Asean market and Proton's brand name will also be exported and maybe will be used to penetrate entry level market. So I believed future Proton brand and target market is something similar with Skoda while VW brands are for high end market.
Since DRB also owned EON, I think they will merged EON and Proton Edar. EON subsidiary i.e. I think Mitsubishi and Audi will be transfered as DRB's subsdiary. Probably DRB will also take over VW distributorship from Cartrade.
Lot of angry people here and rightfully so. If gov sells to DRB at RM8.00 per share i'll be allright with that and wouldn't fret if its done lower so long as its at fair value. If i'm a minority shareholder of DRB, i'd be concerned if DRB buys Proton above market even if its at fair value. Either way looks like some people are gonna get pissed. Can't see DRB spicing things for Proton especially with themselves caught up in stock overhang in the market. Synergistic move ..maybe.. but one thing's for sure they'll be buying into a weak company whose bottom line still depends on the Iswara and Wira. So what gives?
Maybe VW or PSA Peugeot can't stomach the political risk that comes with the Government as major shareholder / co-shareholder in Proton ? Hey wait a minute! Maybe that's it ? DRB is just a mere vehicle through which the Government will negotiate and consolidate its shareholdings in Proton- this makes more sense. Now if i'm a minority shareholder of DRB, wouldn't this mean DRB's relationship with the Government will just become more intimate and that means potential government contracts deal-flow ?
Nasi sudah menjadi bubur la…..Hopeless or Pathetic.
Only Foreign partnership will help…trust me.
"while the EPF owns 12%." nice we seems double paying proton to survival.. how come EPF making deal with companies that not profiting? Nice job! Oh, I forget.. whos money is that…
this type of color person r talking like come from the space from no where .
this DRB-hicom u n me is the same , how the hell who to save who o just 1 to take a publicity by now to put there name in newspaper that people long ago not even remember there name any more.
this people like to put there finger in other people ass hold!
e-by said,
"Now, DRB only wants the Proton Holding not the Manufacturing."
—————–
The long term survival of P1 is not depend on marketing section as DRB-Hicom aim for it but manufacturing section. P1 is "terminally ill entity under ICU unit" required foreign tie-up with reputable world class manufacturer like VW. P1 with self-centre view always look at how other party fit in its interest and ego in term of "national car" status. Do P1 consider say VW view on taking over P1. Say VW as private entity with main concern on profit and turnover to its sharholder will not look at P1 "national car" sentiment including act like white knight to bail out P1 like what G done to other GLCs. But will explore the possibility of taking over to synergize its biz expansion plan which may include to penetrate the market at this region.
In mass production car biz – 2Q is the secret of success, quantity and quality (including safety, lower cost and value for money aspect) is the jargon that can't be avoided by them for their long term survival. Unfortunately, P1 lack of or totally absent of both! Quality factor play major role to make the car salesable, whislt quantity contribute significantly to the turnover and profit level of the company.
For DRB-Hicom so call "HELLLLLLLLLLP" in securing majority stake in marketing section, it does not help in true sense the long term survival and turn around P1 fortune on the following factors: –
1. DRB-Hicom can claimed they are experience (Thru EON) in marketing and former significant stake holder of P1, but their marketing geographical area is limited to Bolehland. Does DRB-Hicom have the financial muscle, expertise and capability to conquare and become world class player in the world market like China, India, Japan, USA, Uk, etc. This is important in contribute to profit level, Q – quantity! I believe DRB-Hicom, if they want to penetrate TomYam Land market also facing all kind of constraint and will be worst than Toyota Hiace case!
2. For quality, nothing to say about what DRB-Hicom have except they boast of components supplying. Can they improve P1 quality to gain market share?
So, DRB-Hicom, Mofaz, NAZA or any other non-manufacturer entities that does not have 2Q will not be able to "HELP" or lead P1 out of its present calamity. Only well establish car manufacturer giant like VW with 2Q ingredient is able to change the P1 fortune and long term survival – but on their term! Any attempt by P1 to attach "national car" sentiment in its dealing with potential foreign partner only spell failure in negotiation.
So, what technology do DRB have to save Proton's day? Technology to force more low end cars down to consumer throats?
Translated simply, they want a piece of the actions.
When heard that VW-P1 talks is on again, everyone wants to jump into the bandwagon, and offer so much strategies etc.
Nevertheless, the pivot in this talk is still whether VW will ink the partnership or not.
Pity Proton, as the saying goes, I dont want to see "too many cook will spoil the soup" kind of situation to already injured company. I think Proton need to follow proven and successful ventures of other manufacturers.. and the rest, they should understand that too..
Agreed that only established foreign car maker like VW can help Proton not DRB, Sime, Naza or Mofaz.. All of them did not have the capabilities, expertise and money to do that.
However, I still believed our local companies do have the capabilities and expertise to market the product. Bear in mind, they will market totally new product not the junk Gen2, Savvy or Neo.
Do you think people buy Toyota because of UMW? Bear in mind, UMW also a GLC. BMW 5 Series even distributed and marketed via Sime. Honda distibuted by DRB subsdiary. In car business, the major thing is the car itself. It will sell if the car looks attractive and offer value of money. I don't think locals company can't do a good marketing job..well at least for Asia.
We need to retain our brand name, well at least we still have 'our' car. Look at MyVi, most of people knew it is not a Malaysian car but people still perceived it as a National car. Perodua still retain distribution and marketing. Do you think Myvi is selling like hot cakes because of the car itself or because of efficieny in distribution and marketing??
Actually, all 4 companies can see how much they can get the return when Gvt sell Proton to VW. The can see when VW came in and produced new model, it will sell like hot cakes. Even established proton Vendors support the idea because they knew they will get more business (if they get selected by VW).. smaller vendors maybe have to close their shop.
e-by said,
"However, I still believed our local companies do have the capabilities and expertise to market the product."
————–
P1 long term survival is export market. And now because of local ownership to retain "national car" characteristic, these bunch of local distributors also want to be owner of car manufacturer? They may have the necessary resources and expertise to do so at local market under crappy NAP!
The big question is do this local distributors can say sell at export market 1 million (Tg Malim designated full capacity) of P1 car to "HELP" the tiger head brand. If VW purely control on manufacturing arm, don't expect VW will help P1 market their car at export market (likely future model is rebadge from VW for local market just like P2). VW will just concentrate on their biz plan expansion on their VW brand market penetration in this region. And left P1 brand fight in domestic market only! To expect VW help P1 in export market, then G should allow VW to have effective control (51% or more) in both manufacturing and marketing arm, just like Skoda. Don't talk about "national car" status is this is crappy stuff that produce "moving metal junk".
Look at P2 is a good case, MyVi is selling like hot cake in our market but marketing arm still under local Perodua. Do Toyota or Daihatsu help P2 to sell MyVi in oversea market? The answer is no as they have the Boon and Sirion to take care, and MyVi is a rebadge from this model which to Toyota perspective, intended to capture big market share in our Bolehland market only!
I don't have the information on what VW is going to do with Proton. However, VW plans maybe differ from Toyota/Daihatsu (T/D). In Asean T/D is more interested in enlarging market share with the same car (only comestic changes). However, as for VW (based on business model on Skoda), they more likely to use their exisiting platform to build totally new car and market is as entry level. VW is a premium model and they need a entry level model to compete with other marques. However, an entry level model cannot carry VW branding because it will jeopordize and downgrade the brand.
VW knew if they bring in Skoda (assemble), it will be ineffective, expensive and time consuming. So Proton is one and only of the best choice avalaible.
I believed VW in any way will help Proton Holding to market the product especially in Europe. Don't expect overnight success but we can expect gradual acceptance of the brand. If they can sell 100,000 cars a year at overseas mkt within this 5 years time, they will be more than happy.
If Proton Holding also sold to VW, they can even buried Proton brand and subsequently we will 'lost' everything. This is what Govt does not want to do. This is all about politics and country image. You need to understand that (you will understand it if you're up there). If expertise is the issue, Proton Holding can even hire VW expert to do this job. In terms of overseas distrubutionship, if the product is really good and tempting, we do not have to worry. They will come to us..
I think DRB or Sime can do much better job as least if we compare to Khazanah Nasional or EPF (current biggest shareholder) to have a final say.
If still want to argue on P1 self-center Protonomic protective market under NAP, then let it be. See which foreign manufacturer "so dumb" as to take over P1 under this term.
If P1 still can't see or unable to compete in open market under free economics, yet want to maintain current "national car" ownership structure, then better maintain present status quo. No point to talk for tie up with foreigner as this negotiation will go no where, unless to carry out "talk show" in an attempt to create excitiment to its share price.
Not only should they have foreign partner, they need a fresh brand and image. First step to uplifting your image is to drop the Proton brand.
you see..the reason behind DRB to take over proton..the DRB guy (Tuan Syed) is close buddy to Dr Mahathir..and ultimately, maybe Dr M want DRB to own proton..see, that cunning old man. you can never write him off
I suspect, that DRB and Dr M got plans for proton. dont worry. even he is 80+ years old, I never doubt him..
ps- really hoping Proton can turn things around..
No, I don't want to argue with anybody. :)
I just express my view based on what are likely to happen not what I prefer or wish to happen. The assumption is based on common practise in Malaysia especially when dealing with a GLC's. Under these circumtances what things are likely to happen and how they are going to handle it.
You got to ask yourself.. will government give up so easily on Proton?
well..face the reality.. Welcome to Boleh Land..
Hehehe, DRB have no money, no expertise, no knowledge, no capablities, no network, no infra, how can it give synergies and help Proton……Its getting funny and funnier each day………
DRB, go revive your Alam Flora, Intrakota, Chevy, MTB, AMM before coming to this deal, pity them no work n job maaaa……….
proton the best in the world…belive me….
Hello brother, only the greatest joker specy like you will believe you …… no offence hah ………
hahah finally u come…..huhuhuh
Huh! co-operate with DRB? What DRB have? technologies? with this kind of co-operate, Proton would get NOTHING! just like mendukung biawak hidup. C'mon la Proton oiiii!!! Wake up!!
I stared at the topics a few times. " DRB wants to help Proton……." then i burst to absolute laughter….." helps Proton to drain their cash reserves….."
get real ler beb……go revive your Alam Flora, Intrakota, Chevy, MTB, AMM, KOMNAS 2020, TD2000, ACE automotives, MasterFreighters, before coming to this deal, pity them no work n job maaaa……….