DRB-Hicom rejects £1 offer for Lotus, wants to nurse loss making sportscar maker back to health

DRB-Hicom rejects £1 offer for Lotus, wants to nurse loss making sportscar maker back to health

It has been revealed that DRB-Hicom, owner of Lotus via its stake in national carmaker Proton, received an offer from a foreign company to take the loss making sportscar maker off its books for £1. The offer was rejected, according to a StarBiz report, and DRB-Hicom will stand by Lotus and nurse it back to health.

“The easy way out was to accept the offer. As a businessman, that was what I could have done to cut the loss, move on,” said DRB-Hicom group managing director Datuk Seri Mohd Khamil Jamil in London.

“But looking at the intrinsic value of Lotus, the knowledge, the iconic brand with global presence and positioning, coupled with unsurpassed engineering expertise and a talented workforce, its ability to cross function with Proton.

“We believe we have a business plan that will work for Lotus. If I sell without trying, at the end of the day, I will fail my shareholders,” added Mohd Khamil, who is also Proton’s executive chairman.

Failure is not an option. “The loan to Lotus is guaranteed by Proton. If Lotus is in trouble, the lenders will go to Proton. Looking at Proton, it is in no position to absorb the amount. Then, they will go to the grandfather, the ultimate holding company, which is DRB-Hicom. We have 53,000 staff with us and we cannot allow Lotus to take us down,” he added.

DRB-Hicom rejects £1 offer for Lotus, wants to nurse loss making sportscar maker back to health

The loan in question is a £270 million syndicated loan extended by Maybank, CIMB, Oversea-Chinese Banking Corp Ltd, ExportImport Bank of Malaysia Bhd, Affin Bank Bhd and EON Bank Bhd at the end of 2010. Lotus had drawn some £207 million of that amount before the banks froze the remainder by July last year. The issue has now been resolved.

“We met the six bankers last month. I have made personal presentation on the revised plan that I have in the interim for Lotus. The bankers have taken them positively. They have decided to waive the condition subsequently and forgive Lotus and Proton. We are looking forward to a scheme with the bankers whereby we can draw down the balance of the loan. It will help part-finance financial requirements of Lotus,” Mohd Khamil told Bernama.

DRB-Hicom has also put its own man in charge of Lotus. Aslam Farikullah was appointed the chief operating officer of Lotus in June after former CEO Dany Bahar was sacked. Aslam, 51, worked as an engineer in the UK for 18 years before joining DRB in 2007. His most recent post was the division head of manufacturing and engineering at the conglomerate.

So Lotus has managed to escape the same fate as MV Agusta, the Italian motorcycle maker that was sold by Proton for one euro, for now. But guiding Lotus back into the black, helping it stand on its own two feet, and thrive from there is no easy task – if DRB-Hicom pulls it off, they would have achieved something that many have tried, and failed.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • we shall see.

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    • Lim Kopi on Jul 25, 2012 at 12:33 am

      People, don’t be fooled.

      DRB-Hicom and Proton shareholders are pretty much the same UMNO crony gang, just different members.

      And these people only have one thing in common – GREED. They do not have the experience nor the capability to lead Lotus anywhere. So what can they do for the time being ? They just TALK A LOT OF COCK, say can do this la, do that la … typical of money minded cronies isn’t it??

      The next u know they will be so bloody happy to see their shares go up with this sort of sensational announcement (actually reminds me of our own govt).

      Want to do it, do it with passion laa, and prove to the world with RESULTS … Not mere Cock-talking!!

      Like or Dislike: Thumb up 2 Thumb down 3
      • Paint on Jul 25, 2012 at 2:12 am

        Really boring when some numbnuts choose to mix politics with automotive blogs.

        Like or Dislike: Thumb up 1 Thumb down 1
        • HirumaKecil on Jul 25, 2012 at 5:14 am

          Absolutely Stupid…. Always like this… This is automotive blog, yet they still wanna talk about politics..

          Like or Dislike: Thumb up 1 Thumb down 1
          • presna on Sep 24, 2012 at 9:13 pm

            not saying i completely agree with @Lim’s statement, but you can’t deny that politics is involved in every aspect of business in Malaysia, yes even in the automotive industry.

            DRB’s sole task was to turnaround Proton, which several management teams have failed to do @P1, and now they’re just going back to the “Foreign partner” route again…. how many times have we heard this?

            this is just my opinion but, P1 is better off if its just poaches the cream of talents in Lotus into its fold and probably sell of the brand (with a long term partnership perhaps). Hell there were reports of even local homegrown players such as Tan Chong motors (apparently) whom were interested in Lotus…. so sell it off to them and prevent more bleeding of cash @ P1…

            This is just a unnecessary egoism at play…. whom you ask? well you can’t deny that certain politicians wouldn’t keep mum if anything were to happen to P1 greatest acquisition (ermmm, doubt anyone who matters would talk about the MV Augusta debacle fondly..)

            anyway simply put, politics is in pretty much all big business (think of the GLC’s) in Malaysia, denying it is just ridiculous ( and that’s being polite)… and no I’m not bashing P1, its a nice brand, but neither am I willing to see decades more of protectionism to support more lackluster offerings from P1….. so screw Lotus and fix P1, DRB!!!

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      • Annoy_namous on Jul 25, 2012 at 9:03 am

        “They just TALK A LOT OF COCK ‘….. Exactly like what you do now, talk cock only. Build your own car manufacturing and succeed, then you can talk. Not cock talk only…

        Like or Dislike: Thumb up 1 Thumb down 0
      • farghmee on Jul 25, 2012 at 9:08 am

        so let them prove their says 1st.

        keep looking forward!

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    • Pakatan to reduce car taxes if voted into power! Please vote wisely if you wish to be able to buy a Lotus car soon..

      Like or Dislike: Thumb up 0 Thumb down 1
      • alytheman on Jul 25, 2012 at 8:39 am

        another political agenda… no black and white, just talk crap… yeah, maybe they (PR) will reduce…but how much?? 10%-15% maybe… not more than that!! u think is they incharge they are willing to let go 100 of millions only in car taxes?? in ur dream dumb ass!!

        Like or Dislike: Thumb up 2 Thumb down 1
        • car driver on Jul 25, 2012 at 12:44 pm

          i see that you wrote ‘MAYBE’.

          well ‘maybe’ is good enough for me. i know for a fact the current gov don’t give a damn about reducing the tax for the sake of allowing better quality cars for the people.

          maybe they will reduce it. maybe they won’t.
          maybe they’ll stop feeding the cronies, maybe they won’t.
          maybe they’ll stop the act of corruption, maybe they won’t.

          MAYBE is good enough for me. the current gov for a fact not gonna stop feeding their coffers, not gonna stop the corruption, not gonna stop giving APs to their cronies, not gonna stop escalating the taxes.

          yeah, maybe is good enough.

          Like or Dislike: Thumb up 2 Thumb down 2
        • They do have black and white…a detailed plan will be revealed soon..please study it before you make any conclusions..anyway, its your choice if you still want to pay high prices for your cars..

          Like or Dislike: Thumb up 1 Thumb down 2
        • tokmoh on Jul 26, 2012 at 12:18 am

          Haha, u miti aa? Maybe here, maybe there, maybe this comment also your strategi pemasaran. Mungkin eh… Mungkin…

          http://i.imgur.com/vCzvb.jpg

          Like or Dislike: Thumb up 0 Thumb down 0
      • matlimmutu on Jul 25, 2012 at 8:39 am

        we’ve been fool already by pakatan in selangor. no pakatan for me.

        Like or Dislike: Thumb up 1 Thumb down 1
      • farghmee on Jul 25, 2012 at 9:07 am

        weh..itu lotus luxury la..
        may be u can get cheap saga after PKR win.

        home stirred coffee is cheaper than starbucks.

        Like or Dislike: Thumb up 0 Thumb down 0
      • kerelbort on Jul 25, 2012 at 12:44 pm

        kamon lah.. the last PRU said they going to reduce the door tax for selangor if they win? has that been reduced? coz my door tax still came out the same…

        Like or Dislike: Thumb up 1 Thumb down 0
    • RM1.33bil only mah, malaysia rich & got that money to spend :-D

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  • b sensible on Jul 24, 2012 at 8:24 pm

    i see on the internet, lotus produce good looking car but always a concept car….just wondering lotus not selling enough cars to make profit, but relying heavily on development…meaning more money burnt but no investment return…my take is lotus shd make more “affordable” cars, “not so high end” car which appealing to the masses…so that it can sell more cars thus improving the cash flows. lotus need to be independent rather than relying too much on its parent co.

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    • Simon Hoh on Jul 24, 2012 at 9:20 pm

      Developing affordable cars for the masses is a different ball game altogether and I doubt that Lotus has the appetite or time to go down that route.
      Nevertheless, we have seen strategies taken to market Proton cars as Lotus in China. I think that is a good step, but Proton will have to build better cars for the branding activity to work.
      My take on Lotus way forward would be to reinvent themselves as sportscar maker that makes practical sportscar, not focus on raw minimalism. If I buy a Lotus, I’d like to have some gizmos in it, and of course, with some level of comfort as well. They should make a better attempt at internal refinements.

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    • Cosmo Artemis on Jul 25, 2012 at 8:36 am

      Yup…exactly…just like Ferrari and Fiat.

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    • alytheman on Jul 25, 2012 at 8:40 am

      this mat Salleh got pride!! no sales, no problem… as long as we have names!! shiiiit!!

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    • Redwings on Jul 25, 2012 at 8:59 am

      How about the price of our current car?

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  • drb sengal on Jul 24, 2012 at 8:26 pm

    yeahhh ..dont let ur ego down..

    Like or Dislike: Thumb up 0 Thumb down 0
  • Devon on Jul 24, 2012 at 8:39 pm

    Just go bankrupt la Proton and DRB Hicom.
    I doubt anyone will miss them also….

    Like or Dislike: Thumb up 0 Thumb down 1
    • he said drb-hicom more than 50k employee, sure there are lots of ppl will miss them. if devon go bankrupt or even die, it doubt more than 100 ppl will miss you.

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  • having drb-hicom as ultimate shareholder is a lot better for lotus. at least drb-hicom has the business profile where synergies can be found and built up.

    to the detractors here, i say lets give them a fair shot. this possibly being a last attempt..

    all the best datuk seri and team

    Like or Dislike: Thumb up 0 Thumb down 1
    • along on Jul 24, 2012 at 10:22 pm

      Hmmm,

      A wise man once said,

      “stupidity is doing the same thing over and over again but expecting different result…”

      Just bite the bullet and open up the market…

      We as customers will hold our purchase no matter what u do…

      Like or Dislike: Thumb up 0 Thumb down 0
      • instant gratification only works for the financial types… and see what they have done to the world.

        enzo, henry, and more recently elon, spyker did not get to where they are like yesterday…the latter 2 are still trying, btw.

        yeah of course its a free world…go get that repmobile and be happy

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  • mystvearn on Jul 24, 2012 at 8:44 pm

    Lotus is a good acquisition. Hope DRB have time to turn it around. Like TATA when they bought Jaguar Landrover.

    Like or Dislike: Thumb up 1 Thumb down 0
    • Can anyone tell me if TATA is protected in India in a similar way to Proton?

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      • alytheman on Jul 25, 2012 at 8:42 am

        Proton is protected?? in which way!! Proton cars need to pay tax also la.. the G is using Proton names to increase the tax..

        Like or Dislike: Thumb up 0 Thumb down 1
        • car driver on Jul 25, 2012 at 12:48 pm

          are you blind? are they charging the same amount of taxes as other makers?

          are they charging the same 200% taxes (or whatever number) to both proton and say, BMW? are they charging the same amount of taxes as to proton persona and say, Merc C Class?

          then yes, there’s your protection.

          Like or Dislike: Thumb up 1 Thumb down 0
        • alytheman on Jul 25, 2012 at 4:07 pm

          car driver…

          if they charge same amount of tax to local product its insane dude.. any country wont tax their local product same as imported product!! u a meaner than our GOV… go learn economy and scale than talk… so who are blind now, u or me!! IDIOT!!

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      • farghmee on Jul 25, 2012 at 9:10 am

        is TATA’s car taxed in homeland?
        Proton yes.

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      • Syazwan007 on Jul 25, 2012 at 9:29 am

        No, but at least the cheapest proton which is saga never caught fire like tata nano. Our population is only 29 mil, india has 500 times more. So do u really think they need protection to sell cars??

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      • they are.. just like other capitalism in the rest of the world. otherwise, the rich not get richer, and the poor will not get poorer.

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      • zidane on Jul 25, 2012 at 11:07 am

        i spoke with one Indian national Engineer…

        The imported car price there are sold i think about 20% higher than indian made car…

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  • optimus on Jul 24, 2012 at 8:45 pm

    thank goodness it did not sell for 1 gbp. else we smell something fishy…

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  • Lotus Banana Leaf Rice Restaurant on Jul 24, 2012 at 8:52 pm

    When Lotus fails, Proton fails and pulls down DRB-Hicom. If DRB-Hicom goes down the banks cannot collect the debt. The Govt bail out the banks with taxpayers’ money. Nice.

    So, when is Proton going to guarantee another loan of GBP240 million to Lotus? I think they would need it pretty soon.

    Like or Dislike: Thumb up 1 Thumb down 0
    • Lotus Banana Leaf Rice Restaurant on Jul 25, 2012 at 8:41 am

      At today’s exchange rate is is almost RM 1 billion. One billion down, another billion should be on the way very soon.

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      • car driver on Jul 25, 2012 at 12:51 pm

        satu lagi projek kerajaan barisan nasional.

        ok ok, upcoming. they should put up a sign for it. i’m up for the tender. no worries i’ll just markup 200000% for it.

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  • shawal on Jul 24, 2012 at 8:53 pm

    If one wants a porsche ,they’d buy a porsche
    the real question is what makes a lotus? stick to that , cheap to run, fun & lightweight cars with supercar looks.
    plus
    we’re still waiting for the lotus developed twin cluth gearbox to be used in its cars, proton’s or other china brand’s cars ,
    Lotus developed the spine for GT-R, and host of other engineering feat for other manufacturer ,
    if there are any offers , means theres still demands..

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    • yankeepapa on Jul 25, 2012 at 8:56 pm

      When Lotus was under Bahar’s watch (and also Protons)I could not see the logic of them spending millions developing a V8 engine. How many Esprits are they planing to sell? Hundreds per year at the most. It is cheaper and less risky to buy and engine from say BMW or Toyota (proven engines with a reliability record). Back home we are sorely missing a good up to date 4 cyclinder engine for the Protons. My Satria engine is rough, extremely vocal, horrendously low on torque at low RPM and not economical at all. Kudos though for the ride and handling.

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  • Jolly_idiot on Jul 24, 2012 at 9:03 pm

    Pity lotus only cost £1. This is an insult!

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    • They will say including the take over the debt maa.. That’s why so cheap one..

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    • its not an insult
      coz the potential foreign company will takeover the lotus’s 200mil Pound debt also
      so DRB will see another 200mil Pound saved by this action,but they didnt proceed

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  • RedBeanBun on Jul 24, 2012 at 9:17 pm

    it just show Msia Company is not able to run a international business due to competitiveness, and cronies or datukship take control over the real business people. After MV Augusta, its now Lotus! hahahahah…what a joke to the money pump into it earlier for all those shit.

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  • Just me on Jul 24, 2012 at 9:29 pm

    Poor Lotus, already a dying company, and will continue lossing money for many years to come. In Malaysia may be still get special treatment from the corrupt gov, outside malaysia, menang malaysia tak boleh!!!

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  • Lilredridinghood on Jul 24, 2012 at 9:38 pm

    Lotus do produce cheap running cars such as the 1.6l Elise, sadly our taxes and everything made it slightly pricier. And not to mention, not everyone can learn to appreciate the raw-ness of the car. It drives like a go kart, not for the general public, could be the reason why lotus ain’t doing as well as Porsches.

    Lotus and Porsche lover here btw :)

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  • Wise decision, I would not even sell my bicycle for 1 Euro.

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    • niceone on Jul 25, 2012 at 12:47 am

      well if the maintenance cost of your bicycle reaches thousands of ringgit PER DAY, you would need to think again. :D

      joking aside, yes it’s still a good decision from DRB, give them chance and a bit more time.

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    • does your bycicle comes with 200mil Euro debt?

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  • mmouse on Jul 24, 2012 at 9:43 pm

    Hahaha, what an insult, now you know what people think about Malaysians, they did it with MV Agusta, sure no harm to give it a try again. Hahaha, this is funny.

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    • MV Agusta is ridden with debt also
      & yet now MV Agusta is owned again by different maker, Harley Davidson

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  • DewaSemut on Jul 24, 2012 at 10:09 pm

    Produce a more ‘affordable’ sportscar to achieve economies of scale first… Then gradually build up the high end segment…

    and Proton should translate more of Lotus expertise into Proton’s lineup to make better cars… Change platform with each other… Normal car under Proton and the ‘souped-up version’ under Lotus. Maximise each others’ resources…

    All the best Lotus, Proton and DRB!

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    • Cosmo Artemis on Jul 25, 2012 at 8:40 am

      Exactly! Just like Ferrari and Fiat…

      Mass produce : Proton (souped up with Lotus technology)

      Niche market : Lotus

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      • Yeah and let Lotus use campro engine.. no need Toyota engine anymore..

        Like or Dislike: Thumb up 0 Thumb down 0
        • i realy hope protong engineers can combine 2 campro CFE engine side-by-side into V-configuration,make it a 3.2

          but seems my dream is not materialised yet,they need to learn more

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    • alytheman on Jul 25, 2012 at 8:46 am

      perfecto!!

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    • b sensible on Jul 25, 2012 at 1:56 pm

      this reminds me of prius & ct200h which share the same powertrain. why not lotus & proton share more common features like chassis, powertrain, body, infotainment system…besides there’s a lot of cost savings…

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    • alytheman on Jul 25, 2012 at 4:13 pm

      this can be done… its make me surprise why on earth PROTON did not use LOTUS platform to build our own national sport-cars… Remember KIA ELAN?? Kia bought License from Lotus for that car and produce it under their name with different engine for Korean Domestic Market…damn!!

      http://en.wikipedia.org/wiki/Kia_Elan#Korean_reintroduction

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      • HirumaKecil on Jul 26, 2012 at 2:21 pm

        Easy.. Because they are Proton.. And proton is not sport-car manufacturer.. That is why… And they already have Lotus for that task… Why want to make sport-cars under proton badge and waste their money… Proton make passenger car, Lotus make sport-car…

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  • along on Jul 24, 2012 at 10:27 pm

    Come on policy makers, u know what to do…

    Just jack up the price of all lotus competitors (porche, ferrari etc) by imposing eksais tax to them, then force the whole world to by lotus… hehe easy right…

    Better chage name to LOTUS CURRY HOUSE then

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  • nighttrain on Jul 24, 2012 at 10:30 pm

    Why not build something like Toyota 86, midsize sports car, good handling, doesn’t have to be too powerful, and sell it cheaper than RM249k. That would be their cash cow. Then build those wonderful exotics we saw in Paris as branding power.. Just sayin’. The current cart sized cars they build, IMHO only appeals to a small niche market. Big name, small market. Tsk.

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  • I think DRB hicom didn’t want to embrasses themselves again, AirAsia was bought from DRB hicom by Tan Sri Dr. Tony Fernandes for RM1.. lol they cant bare to see a bleeding company turning into a billion dollar company anymore.. haha

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  • Black Dog on Jul 24, 2012 at 10:45 pm

    I’ll offer £2.

    He thinks he’s real proud to reject the offer but it’s so demeaning that I won’t even want to mention about it!

    After lauching the Exige S, they like to boast of ‘cannot cope with the huge orders’ but in reality ‘shiok sendiri’.

    Even in malaysia cannot see many Lotuses around. Lotus is malaysian owned company so the Govt should give them special tax incentives just like P1 & P2 so that more malaysians can support them instead of losing so much foreign exchange through Porshes, Ferraris etc

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    • Cosmo Artemis on Jul 25, 2012 at 8:44 am

      I’ll counter your offer with £2 and extra 50 pence, plus a box of 20’s cigarette, a can of Red Bull and a ticket to Madame Tussaud…

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  • Jimmy on Jul 24, 2012 at 10:46 pm

    Boss, sorry we cannot transfer the knowledge and expertise to you. With all your monetary support, we would like to express our gratitude by lending you the name ‘lotus’ to give you some glamour to protron – tuned by lotus.

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  • car.driver on Jul 24, 2012 at 11:01 pm

    Lotus cars are basically roadworthy go-kart. Saw a few of them racing to Genting a few weeks ago but one was over heated before reaching Gohthong Jaya speak a lot about their built quality.

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  • Jinba Ittai on Jul 24, 2012 at 11:05 pm

    Dear Datuk Seri Mohd Khamil Jamil,

    I have been saying this for many years. I hope you and your team will take this seriously enough.
    Proton is a Malaysian Car company right?
    So, your ownership makes Lotus a “Malaysian Car” too right?
    Make the Elise Mk 1, affordable for all Malaysians to enjoy. How affordable? I say around RM70-80,000.
    I guarantee you – you will see sales exceeding original Elise Mk1 sales in its entire lifespan in Mk1 guise.
    By doing so:
    1. You are giving the benefits of Lotus ownership back to the Rakyat. Old Proton management did not learn this even when they owned MV Agusta.
    2. You will not cheapen the Lotus brand. To the contrary, you will strengthen it and everybody in the world will come to Malaysia, as it will be a Lotus Mecca. There will be many spin-offs from the many units sold – race series, after-market parts, service, etc.
    People may say that TATA did not do this for Jaguar and Range Rover.
    Please don’t forget that Lotus was never about prestige. LOTUS stands for simple, lightweight race cars – but never expensive (Elite) until it is out of the reach of the people.

    3. You will build serious topline figures for Lotus and then you can concentrate on Profits. You will not lose money anyway by selling Elise Mk1 at this price because it is near the original selling price anyway (in British Pounds) when it was first launched.

    Datuk Seri, if you and your management don’t do this, I hope I will not be the last one to say that eventually Lotus will be sold for 1 British Pound – after you tried to revive it and failed.

    ps. Please don’t forget to credit me for this strategy tip if it works. I’m not crazy for fame but all I want to say is – why can’t Corporate Malaysia just make a simple management and strategic decision?

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    • By lowering the price, you will dilute the brand value… to get back to where you were, it will takes years and persistent… take a look at Hyundai and Kia how many years to command better margin from the brand?
      Proton brand was so bad ann eventhough they had produce a good cars, people still perceived it as cheap car.. so they cannot get good margin from it… you see, producing a car is one thing, market a car and sales it another thing..

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      • Black Dog on Jul 25, 2012 at 12:33 pm

        Read properly, price same as British prices.

        Reducing the price means reducing or even abolishing taxes. A big chunk of your car purchase price is goes to the Govt for tax.

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    • kerelbort on Jul 25, 2012 at 12:46 pm

      historically, EVORA was born to be a Proton first sub 100k sportscar.. but seriously, who would buy a sportscar in malaysia?
      do Proton putra has good sales?
      do Kia Forte Koup has good sales?
      do Peugeot 206cc has good sales?

      they don’t actually but they do look good and most people dream of driving one. but in reality, Malaysian need Avanza, Citra, Rondo, Alza, Exora… figure talks.

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      • chan kam nam on Jul 25, 2012 at 2:25 pm

        Fren, those are not sports car. They may look like a sports car, sound like a sports car but no way a Forte Koup or a Peugeot 206 CC can ever be considered as a sports car.

        Remember the Hyundai Coupe a few years ago. It also looked like a sports car and was also priced like a sports car. Total Flop.

        The closest thing to a sports car is the Mazda MX5. Note, Evo and WRX are also not sports car. These cars are fast and powerful but will not be considered as a sports car.

        If DRB sells any Lotus car for less than RM100K, many people will want to buy it as the third / weeekend race car.

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    • yankeepapa on Jul 25, 2012 at 9:32 pm

      Lotus are hand built cars. To hand built in England is many times much costly than to build it in Malaysia.
      The tooling cost is minimal.
      Hand built the Elise and even the expired Europa in Malaysia. The Brittish has never been renown for their qulity and reliability. BMWs could be made in US or South Africa. So whats wrong building it in Malaysia with its tremendous cost advantage.

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  • Lotus – Lots Of Trouble, Usually Serious

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  • sean zx-10 on Jul 24, 2012 at 11:28 pm

    Embarrasing…the world is laughing with what malaysia is right now.always fails in what it does. Better sell la lotus. Rich guys wont buy lotus. They are rich..why embarress themselves by buying lotus to be in the supercar gang. Malu liao..they will buy at least a porsche GT2. Evora costs almost half a million..can get recon porsche GT2 lagi..kelakar…hahah

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    • but why there are other big car company(maybe VW,who knows) want to take-over lotus from DRB?
      & lotus still laden with 200mil Pound debt
      your logic seems flawed

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  • Proton bought Lotus for the sake of buying, not properly running the company and let the old bunch of people that couldn’t turn Lotus into profit to continue running Lotus. Proton management just don’t care or no time to care about Lotus, as they have their own Proton backfire in their own home yard.

    Proton can’t even keep Proton profiting under Malaysia’s government umbrella, how can you expect them to be able to run Lotus to profit?

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  • £1 offer is not an insult. It’s actually a welcome relief. £1 in return to rid your books of £207m in liability is an interesting proposition for any business but unfortunately for DRB-Hicom they have other non-obvious obligations which unfortunately also involves governments. Therefore not able to make simple and clear business decisions. This Lotus burden could bite DRB in the rear later.

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  • Lotus Banana Leaf Rice Restaurant on Jul 24, 2012 at 11:58 pm

    Ini CEO memang tak tahu kira.

    How many cars is Proton selling in a year? Not enough. Are they making money even in a protected market? No. In fact they are losing money like hell.

    So, how are they going to keep funding the loss making Lotus? And for how long? He can talk positive for all he wants. Ultimately he need to find the money. From where? Only he knows.

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    • Just me on Jul 25, 2012 at 12:09 am

      Hahaha One thing for sure, Lotus banana leaf restaurant making lots of money. I’m sure this one not owned by DRB-Hicom

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    • Money from banks, and I am surprised that banks bought the story from Mohd Khamil, and continue lending money out to Lotus. I wonder what the story is about…

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      • Lotus Banana Leaf Rice Restaurant on Jul 25, 2012 at 12:35 pm

        When you owe the bank a small sum then it is your problem. They will sue your pants off, but if you owe the bank hundreds of million then it is the bank’s problem. They will lend you more to keep you afloat because if you go down their money evaporates.

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  • Other manufacturers make money and sell like hot cakes because of emerging markets like china. But Lotus…. Maybe need to have a better plan. Same goes for proton. Too bad we won’t be seeing the satria GTi thing again

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  • seriousfastdonkey on Jul 25, 2012 at 12:12 am

    Big dream for DRB-HICOM. If it can turn around Proton, then Lotus should stand a chance.

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  • Another syiok sendiri program…Proton dont have any platforms, engines, gearboxes or technology to offer Lotus, how do u expexct Lotus to be profitable?? Proton is no VW, which has tons of technologies to offer to car companies it took over, such as Lamborgini and Bentley? What a waste of good money down the drain, just because of pride…

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    • if you proton sells lotus you bark too saying that proton failed to keep lotus as its rnd company

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    • Since when did Lotus rely on Proton for powertrain technology? Why would they do that when they have Lotus Engineering to provide all that? You’ve got the cart before the horse

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      • skypirate on Jul 25, 2012 at 5:38 pm

        actually lotus is in desperate need for technological help. heck, they couldn’t even produce their own engine for their cars, which they need to outsource from toyota. lotus will only be profitable again once they are taken over by a major car manufacturer like Volkswagen or Toyota or Fiat, not by Proton or DRB as a matter of fact.

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        • Why would they want to produce their own engines? Is there any independent small manufacturer in the world that produces their own engines. Lotus certainly never did except for shortlived attempt I think in the 80s.

          No one in their right mind would want to buld their own engines these days. This is a game only the really big boys can afford. Everyone else is buying engines off them by rebadging and/or adapting.

          Lotus is not in ‘desperate need for technological help’. There is a reason Lotus Engineering (separate division to Lotus Cars) is providing engineering consultancy to almost all the car makers in the world, generating revenue for Group Lotus. This is one of the reason Proton have been reluctant to dump Lotus. 90% of readers forget that Group Lotus is not just Lotus Cars but also Lotus Engineering!

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  • hommedaffaire on Jul 25, 2012 at 12:23 am

    It’s OK. but we expect more than engineered-by-lotus-badging at the back of proton cars.

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  • salleh on Jul 25, 2012 at 12:32 am

    True indeed. £207 million debt is not a small matter.

    But hey, if everything failed, KWSP is still there right????

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  • Dr Mamak on Jul 25, 2012 at 12:48 am

    I hv a very bad feeling that in the end, our rakyat epf money will be sucked into this sinkhole.

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    • Expatriate VN on Jul 25, 2012 at 8:49 am

      Don’t know how many sinkholes already covered by epf. No wonder Barang Naik gov amend the retirement age for worker from 55 to 60 for private sector with 2 prong strategic to “force” you work for another five year for more contribution, and yet to announce the withdrawal age may revise to 60 as well!

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  • Kenny Clarkson on Jul 25, 2012 at 2:37 am

    What an insult..haha

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    • Expatriate VN on Jul 25, 2012 at 8:50 am

      What an insult? Read the fine line, GBP 1.00 together with liability of over RM 1.00 billion loan from banker!

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  • bmpower on Jul 25, 2012 at 3:14 am

    It’s not an insult.
    It’s just like Tony Fernandes bought an airline company with only RM1 (later rebranding as Air Asia) but do take the RM300M debit by that time!.

    You bought at £1 but £200 debit in hand. Do you can make it profitable and pay the debt? Think again.

    Eh… like the same story as Tony Fernandes? r he really does the offer to make the same history again? (He maybe not satisfied with the Caterham?)

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    • tokmoh on Jul 26, 2012 at 12:51 am

      You’re forgetting the “million” in £207 (instead of £200), that’s some amount of missing zeroes.

      Effectively, the buying cost would be £207,000,001, while DRB would ‘earn’ £206,999,999 of debt released.

      People should not just sensationalise one ringgit/euro/pound kinda transactions, there’s normally (or rather, definitely) huge debt to be inherited with it (just like the MV Agusta saga few years ago). It’s like buying a dirt cheap second hand car, but with tonnes of wear and tear issues, major repairs, paperwork etc to be done to make it roadworthy.

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    • robby on Jul 26, 2012 at 3:48 am

      it was AirAsia since DRB, TF didn’t change the name. RM300m debt? typical Malaysian hentam number. go do more reading.

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  • Gavin on Jul 25, 2012 at 7:23 am

    thats a tongue in cheek thing to do

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  • Jonnie on Jul 25, 2012 at 7:32 am

    1? Meaning company finance in trouble, in debts and no resources to operate in future,
    like Saab. Just sell off the car division and keep engineering?

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    • alytheman on Jul 25, 2012 at 4:18 pm

      agree.. LOTUS is impossible to turn around in figure.. so sell the fucking company and keep the engineering…

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  • We shall see. Time is ticking.

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  • matlimmutu on Jul 25, 2012 at 8:41 am

    lotus should produce more affordable car. sell it also in Malaysia. nice sport car, lotus brand, rm200k. sure can sell.

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  • Expatriate VN on Jul 25, 2012 at 8:45 am

    In the event Pakatan take over and scrap NAP!
    1) Lotus up for sale = GBP 1.00
    2) Our beloved jaguh kampung, P1 up for sale = RM 1.00
    3) P2 up for sale = RM Market price
    4) All brands car for sale = RM market price

    Turn around for Lotus my foot!Get ready to pump in more RM or fire sale at GBP 1.00!

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  • Unforgiven on Jul 25, 2012 at 9:21 am

    Funny, even it’s rm 0.50 sen you may not be able to swallow the millions in debt. In fact, hard to see on how to pay back the debts in 3 to 5 years. Another jaguh kampung perhaps.

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  • matlimmutu on Jul 25, 2012 at 9:32 am

    built the car here in Malaysia, use local workers and sell it cheaper.

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  • simple way to turnover the Lotus is do it PROTONG WAY in Satuland, imposed heavy tax on all imported cars….. for sure Lotus will be most popular in GB

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  • Eyesore on Jul 25, 2012 at 10:05 am

    hahaha bmpower… same thought with me… i was wondering who made the offer… First thing come to mind.. Tony F… cuz he tried to buy Lotus before lol…

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  • DRB should focus & enhance its promoting and marketing activities on Lotus brand especially in USA (Los Angeles & NY), Europe, China and Hong Kong. That was lacking in previous management.

    Thank you.

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  • why proton, MAS always making lost instead of profit,is it the way we doing bussiness……..jual nasi lemak pun untung……….lol

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  • I think Lotus is so blessed to have such a good owner DRB.

    However, the $1 offer also indicate that DRB is not in a healthy financial position.

    Finally, I believe Lotus should sell expensive cars like McLaren and Ferrari do. That said, they must improve the quality of the product so that it is worth such high value.

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  • OnePoundtoomany on Jul 25, 2012 at 11:56 am

    I think they are wrong not to get rid of Lotus, how many years Proton need to subsidise Lotus ? What did Lotus contribute to Proton ? They should just change Proton name to Lotus way back when they bought Lotus, now we will be driving cheap Lotus cars !

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  • retard on Jul 25, 2012 at 12:06 pm

    eek…better get rid of lotus, we must follow the govt policy that is look east. why u want ada gaya, nama tapi poket kosong. memang bodo punya bines seperti proton mau simpan lotus. kena tipu mat salleh saja.

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  • Cheah Tat Cheong on Jul 25, 2012 at 12:18 pm

    Fighting words, but will be in vain eventually. Proton is bleeding, Lotus is on life support and in deep coma. For now DRB can try, but it will mean sinking more millions into a hole and then selling it on for RM1 a few years later. Please learn from history.

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  • kerelbort on Jul 25, 2012 at 12:48 pm

    Bugatti is making loss every year. you dont see them dumping their as5 right away, its a brand value that count in automotive world.

    holistic view of marketing an automotive group is needed to run a group.

    if you don want to spend another company money to keep another company running, go open a minimart.

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    • Cheah Tat Cheong on Jul 25, 2012 at 7:18 pm

      What is the value of Lotus engineering? Is it the badge or some intelligent property? Do they have a patent that’s worth a few billions? What good is a brand when it can’t get cars on the road that customers want to buy? Alfa Romeo is a good brand too that’s hanging on to dear life, but at least it has some interesting engine innovations (e.g. Multi-air) that’s worth something, what has Lotus got? A hope and a prayer?

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      • Who do you think created the 2 stage valve lift system used in Porsche today dubbed Porsche Variocam Plus? Similarly, where do you think the Campro CPS valvelift system came from? This to name just a few out of many ‘intelligent property’ Finally, why must these ‘intelligent properties’ only be showcased in Lotus Cars?

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  • Josh Ling on Jul 25, 2012 at 2:23 pm

    Actually for me personally, i think this is the most brilliant way of saying “Get your act together, and move your butt off the ground, and prove to us that you are worthy to be kept under us, Lotus! This is your final warning!”. there’s always some hidden messages and agendas behind every business decision.

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  • v-power on Jul 25, 2012 at 3:22 pm

    “The easy way out was to accept the offer. As a businessman, that was what I could have done to cut the loss, move on,” said DRB-Hicom group managing director Datuk Seri Mohd Khamil Jamil in London.

    Well you said it…and as a businessman, you’re sure NOT thinking like one. Why temp fate…?

    Lotus is an ailing brand at the moment, no matter how ‘iconic’ it’s brand or reputation is. Leveraging Lotus to provide engineering and expertise to Proton is really not the best solution, nor is it in any way will help save Lotus.

    Lotus needs to start selling cars in huge numbers for the brand to be back in the black. It’s time to let other companies with greater resources, better management and proven expertise to manage the sportscar maker. You can’t have big brother Proton bail out Lotus every time little brother gets into trouble. I personally don’t want to see Lotus die a slow death…this iconic brand deserves better…

    C’mon Datuk…you have Lotus and Proton, both with their own skeletons in the closet. When it comes down to it, Proton should be your MAIN priority, right, kereta rakyat and all…why not concentrate all the resources on making Proton better?

    Since the six bankers have waived and ‘forgiven'(very interesting term…)the conditions of the loan as you have mentioned, it’s the best time to let Lotus go…and wipe your hands clean. The time of ‘syok sendiri’ or ‘nak glamor’ because of the Lotus name has long past its sell-by date. Move forward and fight another day; it’s the best option for DRB Hicom at present in my opinion. After all, the livelihood of your 53,000 employees should be your first and foremost concern…

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  • Pumpkins on Jul 25, 2012 at 4:37 pm

    Just like the Malay sayings: Biarkan si Luncai terjun dengan labu-labu nya ???

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  • kamaji on Jul 25, 2012 at 5:38 pm

    Just dispose this fcuking liability.Lotus can never turn around at least not on this decade. Look at the no of cars sold by Lotus for the past 10 years.

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  • If you read the MD’s quotes between the lines, he is making it very clear that Lotus is a burden and he would cut the losses if he had his way. Unfortunately this is a complex issue which cannot be based purely on business decision as it involves certain shareholders and higher powers including governments, both Malaysia and Britain. Tough spot for the MD to be in. Damned if he did.. damned if he didn’t. This is why not everyone can be the CEO/MD of a large corporation.

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  • Drebar on Jul 25, 2012 at 6:25 pm

    Wow the banks are very kind lenient to Proton eh?

    While most car buyers patiently settle their 60k loans in 7 years well try telling the bank to delay it without some Ahlongs lurking at your house doorstep…

    Wonder how many Ahlong the banks gonna send to get back that RM1 billion loans huh!

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  • car.driver on Jul 25, 2012 at 10:59 pm

    Given 270m Pounds loan is almost fully drawn down and there is still no indication that lotus can generate cash flow to service the loan in the next 3 years. The loan is almost certain will end up in NPL.

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  • razzoe on Jul 26, 2012 at 7:32 am

    Onwards and Upwards! Wishing DRB all the best.

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  • Jaybond on Jul 26, 2012 at 9:15 am

    Datuk Seri Khamil, perhaps two things that you could consider and include in the Lotus revival plan :

    1) To bring down the price for Lotus Elise to sub RM 100K ~ RM 80K for the Local and Asia Pacific market, maybe through CKD & Localization exercise.This is to open up market and make the Lotus presence more felt this region.

    2) To introduce a new entry level sportscar a la Mazda MX5 (the best selling sportscar in the history),perhaps using the legendary Lotus Elan name. It must have the winning Mazda MX-5 formula -A compact front engined RWD car,with highly exploitable and sharp handling chassis and punchy engine plus good quality interior trims, hardtop or softtop options.

    I think this could be the final chance for Lotus to survive under Malaysian hands.Just my 2 cents.

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  • hey, you guys stop comparing Proton to Air Asia la. Air Asia is just a carrier not a manufacturer. Proton and Lotus are car makers! do you know how many thousand parts are involved? Air Asia is actually nothing great! Tony raised RM 700 million to start off by listing it. he gave rotten service to Malaysians . he made us walk thru rain and thunder to enter. but all these he did only in malaysia. he cant do that in other countries. so his turnaround time is 20 min only in malaysia. now, this is where Air Asia has sucked blood from Malaysians. MAS could easily start a low cost carrier. the Morale of the story is some people are lazy to work and rather live off corruption as long as there are political masters to support it. and do you know air asia has not even given one cent as dividends. whats the point of bragging when ordinary malaysians dont benefit. thanks to air asia we have 3 million immigrnts from the worst places in the world and they are not tourists but prostitutes, sick workers and drug pushers! we malaysians have become lazy and stupid! lets see how long oil money can keep us alive.

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  • even big General motors failed to turn Lotus around, DRB what makes you think you can? when it is time for business to collapse it is not up to you to decide whether you allow or not!

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  • amonrei on Aug 02, 2012 at 4:01 pm

    “helping it stand on its own two feet”
    That made me chuckle.

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