Proton reportedly in talks with foreign companies to sell equity stake – Malaysia Automotive Institute

2016 Proton Perdana 1

According to a Nikkei Asian Review report, Proton is in discussion with several foreign partners who may be interested to purchase a stake in the national carmaker, as part of its turnaround plan. Previously, Mitsubishi Motors had a stake in Proton, which was then sold off in March 2004, marking an end of its 22-year investment in Proton.

“We want a partner with an equity share in Proton,” said Madani Sahari, CEO of the Malaysia Automotive Institute. He added that several global original equipment manufacturers (OEM) have submitted their proposals, and Proton is currently reviewing them.

The national carmaker recently received a soft loan of RM1.5 billion from the government, which came with several conditions that need to be met, including the need to identify a foreign partner. Additionally, a strategic plan to increase its share of the domestic market, as well as to penetrate into international markets, is also required.

A task force, led by Performance Management and Delivery Unit (Pemandu) CEO Datuk Seri Idris Jala, was set up to oversee the company’s turnaround plans, which also includes the closing of its Shah Alam plant, consolidating all its production to Tanjung Malim. Both plants are now running at about one-third of their 350,000-unit annual capacity, according to the report.

The newly-launched Perdana is just one of the models that is part of Proton’s plans to reclaim its lost market share, which currently hovers at just 13%. In the coming months of 2016, the carmaker will look to bolster its product range with the introduction of the new Persona (August), Saga (September) and Ertiga-based MPV in October.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • john is otak batu on Jul 26, 2016 at 3:29 pm

    So fast wanna sell off! Eh, not even started pay back the so call “soft loan”. Penetration international market ???!!! Forget it! Local market also can’t dominate! How many Pondana deliver out so far???!!! Pls tell public & stop lying!

    Like or Dislike: Thumb up 38 Thumb down 18
    • Operation Manager on Jul 26, 2016 at 5:58 pm

      Got investors interested in makan nasi lemak minum teh tarik then follow by sleeping culture…???

      Like or Dislike: Thumb up 31 Thumb down 14
      • Abang Alza Pakai Topi on Jul 26, 2016 at 7:44 pm

        Confirmed investors eat dim sum and have mistress go sleep. They love to buy buy buy. Power bought. Rail got. Pondana also they want.

        Like or Dislike: Thumb up 7 Thumb down 10
        • Wah so many cool stories you all pick up from sky, i am shivering here

          Like or Dislike: Thumb up 9 Thumb down 5
        • Kunta Kinte on Jul 27, 2016 at 8:56 am

          Actually in 2007, if VW had merged with Proton, Proton will be making billions. But unfortunately, cabinet shot down the decision.

          here, we must analyse why cabinet shot down the decision. Our brilliant cabinet shot down the decision because the Germans did not agree to the 30% free shares tongkat policy ruling. The Germans were shocked. They have never heard of this tongkat policy. But our Ministers said that in Malaysia, whatever company you set up, you must give 30% shares FREE.

          Mat Salleh said cannot lah like this. Then cabinet shot down the deal. Imagine if Proton was to rebadge VW cars, Proton will be worth billions today!

          Hidup tongkat policy!

          Like or Dislike: Thumb up 7 Thumb down 7
          • kuntabodo on Jul 27, 2016 at 10:20 am

            Eh got that policy in China USA Korea etc too

            Like or Dislike: Thumb up 1 Thumb down 0
          • PlaySafeDriveSafe on Jul 27, 2016 at 2:22 pm

            Had VW buy stakes at Proton, all the Proton SCs would have faced more complaints due to those problematic DSGs fitted into Proton cars…had to wait 3 months for spare parts to arrive…dieselgate summore…lol

            Like or Dislike: Thumb up 1 Thumb down 0
      • Cash Is King on Jul 27, 2016 at 9:11 am

        Sell it off to China company!

        Stop wasting duit rakyat soft loan!

        Like or Dislike: Thumb up 9 Thumb down 4
    • frossonice on Jul 26, 2016 at 7:05 pm

      AFAIK, it is part of the deal with gomen when they got the loan right? They must come out with foreign partnership deal within stipulated time frame. But whatever la because as long as it is Proton, it merit to bash even for their right move.

      Like or Dislike: Thumb up 9 Thumb down 6
      • Low Budget on Jul 27, 2016 at 10:48 am

        Not necessary to bash if Proton let the new partner to have total control of the production and management.

        Like or Dislike: Thumb up 0 Thumb down 0
    • GT Fan on Jul 26, 2016 at 7:11 pm

      Should have sold long time ago to VW when they were really interested to buy Proton for its assets.

      Tapi jual mahal and now Proton sudah jadi janda tua…good luck getting anyone interested to buy now.

      Like or Dislike: Thumb up 21 Thumb down 3
    • Datuk Low Pro File on Jul 26, 2016 at 9:17 pm

      Last time Proton shiok sendiri about their car design. Claimed that Proton is BMW of Asia pulak….

      Now, Proton syoik sendiri pretending to be in-talk with foreign companies….

      Proton – Dare to Shiok Sendiri kot?

      Like or Dislike: Thumb up 24 Thumb down 4
  • justsomepissedoffdude on Jul 26, 2016 at 3:40 pm

    Unless the foreign companies are run by bone-headed idiots, I don’t see anyone seeing proton as an opportunity to invest in. Proton is the parent company of lotus but still manages to produce horrible looking/feature lacking/sub standard cars that cannot even compete in the global market.
    The worst part is that proton will still want 1000% control even after taking $$$ from whichever foolish investor comes along, “Give us your money, your car/engines for re-badge and shut up!! You have no right to tell us how to become a successful brand”.

    Like or Dislike: Thumb up 35 Thumb down 12
    • Albert on Jul 26, 2016 at 6:09 pm

      Hey…you guys forget the Santa company from Middle East can take over.Billions USD ,they can pump into P1.
      One condition: P1 must be a lapdog forever.
      No need say” I did no wrong”.Just say “I am a flunkey”….tons of USD will flow in.
      Protong…buying its cars is already madness(costing taxpayers billions).
      Driving it…..leads to INSANITY.
      jUST INSAF….NO INVESTOR will ever pump even 1 sen.with the amount of politics involved.Even Tun,called it a day at Proton.

      Like or Dislike: Thumb up 11 Thumb down 7
    • Low Budget on Jul 27, 2016 at 10:52 am

      No investors will put their money in Proton if Proton insist on keeping the present management and staff and doing things the Proton’s way.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Malaysia Official 1 on Jul 26, 2016 at 3:41 pm

    The most sickening sight… and its not the car

    Like or Dislike: Thumb up 35 Thumb down 6
  • Jonn Dol on Jul 26, 2016 at 3:46 pm

    Who are the potential bidders? Suzuki is a no brainer.Maybe GM as well. VW or BMW.

    Like or Dislike: Thumb up 2 Thumb down 9
  • Haval no1 on Jul 26, 2016 at 3:47 pm

    Haval or geely have big possible will buy the stake

    Like or Dislike: Thumb up 11 Thumb down 4
  • Myexit on Jul 26, 2016 at 3:50 pm

    Sell RM 1.00 to me!

    Like or Dislike: Thumb up 13 Thumb down 5
  • Designer Music on Jul 26, 2016 at 3:50 pm

    Just sell the whole thing lor. Cut you out of your long misery. Hopefully proton will become a real global player and a pride for all Malaysians.

    Like or Dislike: Thumb up 16 Thumb down 5
  • Sini ambil duit, sana nak jual. Untung, betul-betul untung.

    Like or Dislike: Thumb up 14 Thumb down 5
  • Kunta Kinte on Jul 26, 2016 at 3:56 pm

    Firstly, the picture above does not do justice for Proton. You see, Jib is now a wanted man. FBI also hunting him down. So, the picture above will backfire on Proton if they are looking for an investor.

    The future investor will be scared. they will think their money will end up to be like 1MDB money and lesap.

    Like or Dislike: Thumb up 38 Thumb down 9
  • camtakpro on Jul 26, 2016 at 4:00 pm

    So Persona on August and Saga on September… let the fight on.

    Bezza buyer can just hold on to the purchase, Persona might be better (if you think positively) with VSC and 6 (or 7) airbags across the range. If Persona MT have those full safety, I’m all in (currently looking at Bezza MT lack of safety… pffft)

    p/s: Please don’t bring forward Iriz aircon knob, pleeease!

    Like or Dislike: Thumb up 15 Thumb down 15
    • Another clown trying to portray as the ONLY flaw in Iriz is the aircond knob. The rest are perfect.

      Like or Dislike: Thumb up 20 Thumb down 17
      • Andas on Jul 26, 2016 at 6:43 pm

        Its his money, let him buy what he want la.. u can opt for bezza what.. no one will stop u..

        Like or Dislike: Thumb up 10 Thumb down 4
      • camtakpro on Jul 26, 2016 at 7:50 pm

        Because test drive unit only show this flaw. I would prefer clowns go and buy Proton and become test rat for me.

        Like or Dislike: Thumb up 6 Thumb down 3
    • leoRNado on Jul 27, 2016 at 11:21 am

      we are VERY sick with ‘tunggu dulu’ proton compaign. As early as Myvi introduction, kempen tunggu dulu model proton savvy, then followed by kempen tunggu dulu Iriz when Axia was launched..

      Tukar la taktik sikit. Why not you launch 1st before P2. For the apst 10 yrs keep on tunggu dulu kempen and never change.. That why you need to sell off to other company..

      Like or Dislike: Thumb up 2 Thumb down 0
  • Potong everything la on Jul 26, 2016 at 4:02 pm

    Sell everything and close down is always the best choice! This parasite has been with us for 30 years and we don’t another 30 years of suffering!

    Like or Dislike: Thumb up 15 Thumb down 11
  • Kunta Kinte on Jul 26, 2016 at 4:06 pm

    I don’t know why MAI and Madani Sahari got anything to do with the business and running of Proton. It is up to the BOD of Proton to look for an equity partner or dissolve any assets.

    Unless the BOD and Management of Proton tak ada otak, they need external parties like MAI to do their thinking and managing Proton’s assets

    Like or Dislike: Thumb up 19 Thumb down 4
  • citizen on Jul 26, 2016 at 4:09 pm

    reportedly… who will take shares in a bankrupt company with over RM5Billion Debts and over bloated work force that needs to be halved??? not to forget losing market shares daily?? with the worst management ever in automotive world?

    Like or Dislike: Thumb up 16 Thumb down 5
  • Previous strategic partnership with Mitsubishi, Honda and even Chinese companies has end up fruitless…. Well actually no, the inspira and the Perdana are something thou I can’t reason with both of them, rebadging a car for your range topper don’t sound strategic in any sense.

    I believe is a good move to close down the aging Shah Alam plant as production of Proton cars dosent demand the necessity of two plants. The Ertiga could also be the car that capture sales back from Proton, people want a high(ish) people mover. The Saga and Persona I’m sceptical, they are both going to be prices relatively close to each other which will result in sales cannibalise. And competing with the ever competitive P2. So they are going to have to do a lot to differentiate both and compete with their local counterparts.

    As with all proton plans, it all seems good in wording but in practice they seem to fall into shambles. Finding and succeeding in an international market is absolute for protons survival. Hopefully by 2020, we can see some good news, but proton being proton, that’ll have to see.

    Like or Dislike: Thumb up 12 Thumb down 2
    • donno on Jul 26, 2016 at 7:15 pm

      I fail to see how the ertiga would be anything better than the existing exora in bringing customers to proton.

      Like or Dislike: Thumb up 9 Thumb down 4
      • Pricing, there is still a significant number of non-urban folks with large family and smaller than average family income. If it’s priced starting from RM40k, they can easily win these folks With a car that’s not in direct competition with the Alza. There used to be a car from China, the physic defying, hopelessly unattractive Chana CM8, in that price bracket. But lack of sales support and unfamiliarity with the brand doom it. Proton with a proton badge might just win.

        speaking of the Exora, would like to add that Proton could’ve used the current Exora platform or develop a next gen large platform for the Perdana. The Honda rebadging dash my hope for a shared platform for large protons. The Exora is also aging and is in need of replacing, developing a whole new car from scratch is a waste of resources in my eye.

        Like or Dislike: Thumb up 2 Thumb down 0
        • donno on Jul 26, 2016 at 9:09 pm

          The exora platform (which is loosely inspired by the wish platform) has spawned the proton preve and suprima. I don’t think it is large enough for something like a perdana.

          Like or Dislike: Thumb up 2 Thumb down 0
          • Is it based on the Wish? That I didn’t know. A Exora, or a stretch one can accomadate something the size of a D-segment car. Developing a new platform can also lead to better flexibility for future protons, can also lead to a Ridgeline style truck.

            Like or Dislike: Thumb up 0 Thumb down 0
        • donno on Jul 26, 2016 at 9:21 pm

          I can’t forsee the ertiga selling below the exora prices. Even in Thailand, it is sold way more than the exora.

          Like or Dislike: Thumb up 3 Thumb down 1
        • Bravo AVH n donno! You guys have shown that it’s possible to be very critical n constructive at the same time. Very objective comments. Need more comments like these.

          Like or Dislike: Thumb up 2 Thumb down 0
  • Great business strategies, RM 1.5 billion soft loan, then sell your share. Look like we got rape again..

    Like or Dislike: Thumb up 22 Thumb down 3
  • Kunta Kinte on Jul 26, 2016 at 4:15 pm

    In the picture, there are 7 goons. Most of them are politicians. But most investors will be asking, where is Bapa Proton? Where is Tum Mahathir in this picture of launching the Perdana?

    Investors will be shocked, the founding father of Proton is still alive and yet, he was not invited for the launch of the Perdana.

    It is like Micorsoft launches the Microsoft Office 2017 and does not call founder Bill Gates to bless the event despite Steve Balmer being the CEO and President of Microsoft. It is a matter of respect and honour to call your founding father to bless the event.

    That is our Asian culture. Asian culture insists on respect for the elders. It is also the Malay culture. Respect of elders is very important.

    Investors will ask, what happened to Tun Mahathir? He loved his baby Proton so much, he gave it money and food all the time to the tunes of tens of billions just to keep it alive and yet, in the most important launch of Perdana, nobody calls Tun Mahathir.

    You think investors want to invest in a company like this?

    Like or Dislike: Thumb up 22 Thumb down 8
    • Andas on Jul 26, 2016 at 6:51 pm

      If he is in the picture, u will badmouth him.. if he is not, u will still do.. so a win win situation 4 u.. right???

      Like or Dislike: Thumb up 5 Thumb down 3
  • who cares for proton? a dead company under life support in which anytime that life support will be pulled away by gov or the new owner.

    Like or Dislike: Thumb up 12 Thumb down 4
  • nabill (Member) on Jul 26, 2016 at 4:23 pm

    there are so many good photos of the new perdana , why wd u choose one with the u know who on the left??

    Like or Dislike: Thumb up 9 Thumb down 0
  • Rinnegan on Jul 26, 2016 at 4:23 pm

    Is this the end game for Proton, or the beginning of a turnaround?

    Like or Dislike: Thumb up 0 Thumb down 0
  • George Abdul on Jul 26, 2016 at 4:30 pm

    After take 1.5 billions… Now waiting for selling stake market??? Proton management are indeed the best in asking R&D for nothing !!!

    Like or Dislike: Thumb up 6 Thumb down 3
  • Sewel on Jul 26, 2016 at 4:32 pm

    Better kolos shopla..let p2 be

    Like or Dislike: Thumb up 2 Thumb down 3
  • Close shop la.. Don waste anymore $$ and time

    Like or Dislike: Thumb up 10 Thumb down 2
  • ChinaAutoSoon on Jul 26, 2016 at 4:52 pm

    I am going to guess a China Auto co. the most suitable partner. Most auto co.s already have huge present in Indon or Thailand only the Chinese have not invested in this area in a big way. It makes sense for them to use Proton’s factories which is cheaper and faster way to gain access to the SEA market.

    Like or Dislike: Thumb up 8 Thumb down 1
    • Best option on Jul 26, 2016 at 6:55 pm

      Better sell to China company, then can sell 1 billion Proton cars

      Like or Dislike: Thumb up 2 Thumb down 1
  • Passerby on Jul 26, 2016 at 5:07 pm

    proton only manage to sell average 5k/month which total up to 60k vehicles annual production…
    total cap for this plant is 350k…
    if 60k devide by 350k is only about 17% utilization…
    how come the article mention one third or 33%?
    mistake is calculation or typo?

    Like or Dislike: Thumb up 4 Thumb down 2
  • jolly_idiot on Jul 26, 2016 at 5:09 pm

    If Proton still have some dignity, close it.

    or don’t ever tot of continuing with crony mentality and culture if they sell it.

    Tun M, we thank you for creating Proton for us. And bcoz of Proton, we have our days today.

    Like or Dislike: Thumb up 7 Thumb down 2
  • bukapintubayartol on Jul 26, 2016 at 5:22 pm

    Good! Selling equity is a good idea! Dr.M already screwed a golden opportunity by rejecting VW’s bid. Proton could have been the Skoda of south east asia but the old man had too big of an ego to let it go.

    Like or Dislike: Thumb up 9 Thumb down 2
  • That’s Proton. Screwed up 1 model, launch another and ask for renewed trust in them. If too many things are screwed, change owner in hope that public trust will be renewed.

    Like or Dislike: Thumb up 6 Thumb down 3
  • Operation Manager on Jul 26, 2016 at 5:56 pm

    How could investors pay $$$ but have to accept the culture worker go to Tanjung Malim & Shah Alam factory to nasi lemak teh tarik & sleeping then go back home…???

    Like or Dislike: Thumb up 10 Thumb down 5
  • Middle Age Driver (Member) on Jul 26, 2016 at 6:36 pm

    Ha..ha..high speed train deal got exposed. So hard to get money from there. Now trying to sell off a piece of DrM’s legacy to cover the debts. Don’t think any company want to deal with the govt now as they will be dragged into the mess.

    Like or Dislike: Thumb up 8 Thumb down 1
  • old horse on Jul 26, 2016 at 6:44 pm

    as long as their procurement to source from their lousy quality cronies, close case, who will be the idiots to buy stake into the company and cant control…

    Like or Dislike: Thumb up 5 Thumb down 1
  • old horse on Jul 26, 2016 at 6:45 pm

    all these year launch is waste money, just scrap them all and focus in

    Iriz, Preve, Exora and a new SUV

    Like or Dislike: Thumb up 2 Thumb down 1
  • Henry on Jul 26, 2016 at 8:39 pm

    Unless it is a fire sale no parties would want to touch it with a ten foot pole.

    Like or Dislike: Thumb up 1 Thumb down 1
  • why MAI can freely talk about Proton…MAI is waste of money..only report rumors,bullshit, imaginary report

    Like or Dislike: Thumb up 6 Thumb down 0
  • jobless on Jul 26, 2016 at 10:01 pm

    why is the same management team still around, despite years and years of failed models and wrong decisions??

    Like or Dislike: Thumb up 0 Thumb down 0
  • Game over Potong on Jul 27, 2016 at 12:16 am

    The end is near, potong being sold off to foreigners, first thing they will do is close down all potong models, start manufacturing their own vehicles and their brand & game over for potong…. This is indeed very good news, bye bye potong, it’s been good while you suck the rakyat of their hard earn money, producing junk models … now you can RIP.

    Like or Dislike: Thumb up 3 Thumb down 0
  • hukaka on Jul 27, 2016 at 8:16 am

    subaru will be nice partner,since tan chong has ckd it.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Das Auto on Jul 27, 2016 at 9:00 am

    Firstly Tun M which has been rid off by the second, DSN. Then this guy has IMDB issues which unintentionally bogging the P1 profile. “Keluar dari mulut ular tedung masuk ke mulut ular sawa”. P1 must get rid these characters and find a colourful and trustful CEO, either a local or a foreigner to make people proud of P1. Why must every time P1 cars officiated by PM? Time to stand on your own. Wake up DRB Hicom!

    Like or Dislike: Thumb up 1 Thumb down 0
  • Elvis on Jul 27, 2016 at 9:24 am

    Shame la… The Proton brand is already more than 30 years, still keep using others brand vehicle, Mitsubishi, Honda, Renault, …. Please take a look Hyundai and Kia.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Nobody will take over a rotten company with so many bad apples on board. (lazy workers with over staff + goyang kaki Management, cronies supplier)

    Unless the new partner has a final say in this company.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Mao Situng on Jul 27, 2016 at 11:39 am

    Sell it to Great Wall Motor for 1 Euro.

    Like or Dislike: Thumb up 0 Thumb down 0
  • hidupproton on Jul 27, 2016 at 12:26 pm

    Jual kepada China, rakyat dapat beli kereta baru dan murah, sekian terima kasih.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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