Proton is trying to cut down it’s dealership network by offering a voluntary separation scheme (VSS) to it’s dealers, offering a one time pay-off fee to compensate for them having to close down their dealerships. Proton offered RM150,000 to each dealer, money that it had obtained from the government – that’s RM10 million there. The money comes from the RM500 million Automotive Development Fund allocated in the Ninth Malaysia Plan

However, out of the 102 dealers that were offered this VSS scheme, only 36 accepted the offer. Many dealers snubbed the offer, saying it was too low. Most have written formally to Proton, saying they want more – amounts of up to RM500,000 were requested. The dealers say they invested up a minimum of RM200,000 to setup their operations.

Proton’s latest proposal is to increase the compensation to RM300,000 – double the earlier RM150,000 amount. To do this, it is requesting another RM16 million from the government. The 36 dealers who accepted the offer earlier would also be entitled to this higher amount.

Seriously now, RM26 million for Proton dealers?!?!

EDIT: I’ve added two more sources from Associated Press via Forbes, as well as Associated Press via Chron.

Source: Business Times, Chron, Forbes