The flurry of news activity reporting Chinese automaker Geely as the leading candidate to become Proton’s potential foreign partner hasn’t just stirred the movement of shares at both Geely and DRB-Hicom, which fully owns the national carmaker. It has prompted a response from the latter with regards to matters – and reservations – pertaining to the possible tie-up.
The Malaysian corporation said via a statement that the interested parties – reported to be Geely and Groupe PSA – have conducted their own due diligence on Proton, and DRB-Hicom is now waiting for the submission of bids from the parties, after which an earnest evaluation of the bids will commence.
It reiterated that it aims to complete the selection by the first half of this year, although it is striving to conclude the deal earlier.
With regards to the tie-up itself, DRB-Hicom said it believes that Proton can be a more successful carmaker once a foreign strategic partner (FSP) is on-board. It added that the entry of a FSP will enable Proton to revitalise itself through access to new platforms, powertrains and technologies which will further improve the Malaysian company’s range of products and its quality.
“This revitalisation of Proton’s market share underlines DRB-Hicom’s intent to keep the brand as a player in the automotive market. We remain committed to revive Proton’s fortunes, and finding the right FSP is critical to that goal,” said DRB-Hicom group MD Datuk Seri Syed Faisal Albar.
“History has shown that collaborations between a smaller carmaker and a larger carmaker can revive the former’s fortunes. DRB-Hicom is confident that with the right FSP, Proton will enhance its brand equity can again be a successful carmaker as it was in the 1980s and 1990s,” he added.
He said that DRB-Hicom will evaluate three key criteria – which are the strategic, operational and cultural fit – in finding the right FSP for the Malaysian carmaker. A strategic fit will enable both parties to derive tangible benefits from the range of technology and products available, which will ensure that Proton can achieve economies of scale from its domestic operations.
An operational fit with the FSP ensures that both Proton and the partner will complement each other’s strengths, while a cultural fit will ensure a successful union. This “chemistry” between the two parties will be critical in pushing Proton forward while enhancing the FSP’s own operations vis-à-vis its short and long-term plans.
With a close fit that matches the items listed, DRB-Hicom said it is confident the venture will be beneficial to all parties. It added that in evaluating a potential partner, DRB-Hicom will insist that the Proton badge and its technology will be expanded into ASEAN markets first and global arena subsequently.
The automaker’s parent company also said that there was little to fear that a partnership would be a lop-sided deal.
“Contrary to common belief, Proton has plenty to offer to the eventual FSP. First, they will have at their disposal Proton’s own range of affordable cars, such as Persona, Saga, Preve and Iriz. These cars are manufactured to high production standards and meet global safety standards. Any carmaker that is on board with Proton will be able to find a range of cars to offer specific markets across the globe,” Syed Faisal said.
Secondly, one of the immediate advantages available to any carmaker partnering with Proton is the ability to immediately increase their production capacity through the Tanjung Malim plant in Proton City.
“The plant has a low utilisation rate presently, and optimising the use of the modern facility will also benefit the local workforce. This means Malaysians can benefit from increased employment opportunities with full capacity utilisation at the plant,” he said.
Finally, Proton would also be bringing into play its own in-house research and development team as well as that offered by Lotus Cars UK. The combined engineering capabilities of both teams will offer the FSP enhancements to its own current capabilities.
Syed Faisal stated it was important to point out that DRB-Hicom’s search for a FSP for Proton is a critical exercise to ensure the sustainability of the national carmaker.
“As a local company, DRB-Hicom is proud to be the owner of the first national and ASEAN’s only car manufacturer. We have stated before that we will maintain a significant equity in Proton, and this has not changed. The FSP search is not about shirking our national responsibility but about enhancing Proton as a bona-fide carmaker, and eventually putting it, and Malaysia, on the global map,” he explained.
He added that as a responsible shareholder, DRB-Hicom will also assess the intention of the potential partner in utilising the current “home-grown” vendor network during its evaluation.
“This is a very significant element in our evaluation, as DRB-Hicom, which also owns subsidiaries serving Proton as vendors, will avoid having the “home-grown” network being diluted substantially,” he added.
Looking to sell your car? Sell it with Carro.
this partnership , whoever it is with , is around 10yrs too late…
Ekonomi pada tahun lalu telah memberi kesan terhadap pembelian kereta disebabkan sentimen pengguna yang lebih berhati-hati. Namun
model baharu yang akan dilancarkan pada tahun 2017, semestinya lebih cekap bahan bakar, lebih selamat serta meningkat dari segi teknologi.
Congratulations Proton for the strategic corporate move. Truly our industry captains have engineered a successful turnaround plan. This is a victory that all Malaysians should be proud of. – Faiz Roslan CEng
Proton is selling 51% to Geely. This means, Geely can decide what they want to do. If they shut the factory down or keep it running, it is up to them.
If they sack all the workers and bring in Chinese nationals, it is up to them
If they decide not to manufacture cars but decide to sell goreng pisang in the plant, it is up to them.
DRB and Proton has no say at all cause they only own 49% of the plant.
In company, if you own majority stake, you can do whatever you want.
If they bela lembu also in the plant, Proton cannot say anything!
51% majority is only for the tanjung malim factory NOT proton as a whole. Please get your facts right.
by your logic, you buy a laptop and you make a frisbee out of it because you can.
but surely you won’t do that right? because you bought it with your money and that laptop must hold some value for you if not for anyone else. so what do you do with it? use it as a laptop lah!
same goes to geely. takkan nak beli buat jadi kandang lembu. make some sense a bit la bro
Our ministers said bela lembu in condo is not a problem. Investment for purchasing high grade cows for beef source can be twisted to buy condo. Don’t be so forgetful, everything is possible in boleh land.
u really clever rite, u know how to twist.. remember when i say Honda Motor have majority share in Honda Malaysia u don agree n say govt control by proxy? why this will be any different? cant govt use proxy? lastly why u care bout p1 worker or p1 close by geely?
So u want to bela the lembu kunta kinte after proton plant shut down…or u want to be the cow….
Enough about Protons already! It is not like we are buying their cars or China cars anyway
The robots look tired, same with robots in jepunis owned factories, oh wai
I hope the DRB Guys are not too overjoyed because when China really comes and sees how Proton is being run, they are going to ask some serious questions. Questions such as
1) Company losing RM4 mil per day also but why got overbloated 12,000 staff?
2) Company losing RM4 mil per day also but why directors and management got very high pay packets and so many privileges like driver and limos?
3) Company losing RM4 mil per day also, workers in plant suka hati sometimes come sometimes don’t come. Attendance is a super big problem for Proton
4) Company losing RM4 mil per day also but crony vendors are still the same supplying Proton with super low quality parts with super high prices for the past 30 yrs
.
China will question all this. How is DRB going to answer?
In China, even famous billionaire caught for corruption also now getting executed. They don’t tolerate nonsense and they mean business.
Why do you even care?
No more cheap proton cars I guess :(
Quite apart from its automobile business, Proton Holdings Bhd has a massive land bank, including that site in Shah Alam which then owner DRB-HICOM had planned to develop as far back as 2013, at an estimated Gross Development Value of RM 4 billion.
DRB-HICOM Bhd plans to redevelop Proton’s manufacturing complex in Shah Alam
into an integrated development that will generate around RM4 billion in gross development value (GDV).
It is no mystery then that the Geely Auto share price is at an all time high, for reasons including the Proton acquisition.
Clearly, the market perceives that Geely is acquiring Proton at a discount, and that the automobile business is not necessarily the main component of the company that is to be acquired.
However, Shah Alam is considered Bumiputera territory. Land in Shah Alam is in effect Bumi reserve.
Geely, like other Chinese companies, is more likely than not to market the development to Chinese buyers exclusively so it does appear that the Proton land in Shah Alam will undergo a transformation.
Local brand doesn’t mean local owned.
We couldn’t care less if the proton brand dies or gets renamed to something chinese. Same goes to the ‘national’ status, as far as we are concerned it is a national embarrassment.
my bet is just like with VW, all interested parties will either pull out or be shoved out at the eleventh hour.
Jepunis normal la dowan competition
I am very sure Geely offering will be much better than PSA. PSA involvement only wayang. Anything about China sure win.
Great..we can buy Proton using Yuan in 5 years to come!
Many ppl were misinformed about this matter and thinking that proton will be taken over by a foreign car maker instead when actually involve only the assembly facility. Proton is acting fast to do damage control. Excellent.
Actually, if you read the full statement which The Star carried, the sale is for PROTON’s equity. Not the plant.
The statement suggests that if the partner is on board, both PROTON and the FSP will have access to each other’s plus points…
After deal, Proton still using CamPro VVT & CFE, CVT Punch gearbox.. Still no improvement! Buy Toyota & Perodua better!
Why I see jepunis cars moving so slow, engine problem?
I guess there is nothing to lose. The bashers say “close down” or “close shop”. But mention sale to a foreign partner, suddenly they become nationalistic. What crap.
I have always referred to the Skoda success story as a good example of how a poor, dying brand can be revived successfully. They have made great inroads, and if PROTON finds a good partner – meaning unlike Mitsubishi – they can be a success.
The other factor is to get proper people running the company. People who have automotive running in their blood. No, Tengku Mahaleel doesn’t fit that bill.
Thing is, Skoda is wholly owned by VW. This time it’s a different case, because Proton is seeking for a strategic partner, albeit with a much closer collaborations commercial & technology-wise. Perhaps a bit like the Renault-Nissan alliance. But anyway, either Geely or PSA being selected, both have pros and cons..
Sell is wrong, dun not sell also wrong
Export is wrong, dun export also wrong
Partnership is wrong, dun have partner also wrong
Bashers winliolor!
Remember though, everybody knows Skoda’s are basically re-badged Volkswagens. Does a rebadged Geely, even if it’s sold as a Lotus, appeal to you? Probabaly not.
The entire automotive industry in Malaysia are not run by people who have automotive running in their blood. Tun Mahathir also doesnt.
Support what u are saying.
How can 49% of ownership be justifed as ‘Remain a national car maker’?
Of course, YOU read somewhere that 51% will be sold kan? And its a done deal kan?
Bashers will be bashers. Huge mouth, small brain.
see perodua lor..
Geely who is for sure the partner has no proper in house tech and is not a force worldwide and I can assure all that as long as DRB-HICOM and their band of so called managers and turn around experts are involved the partnership will fail. they need to sell all of it and specially cut the hands of Tun M cronies out and sue proton tech partner for Hybrid car mishap that sucked almost RM1Billion of gov money to get their money back. if they dont do these then proton will remain the same totally failed company.
Can we have a rebadged Volvo V40 T4 as a Suprima S replacement ?
Don’t care what they say. Last time condemned rumors about selling shares to foreign entities fake. What now? lol
Why not just say Proton will soon be the real BMW of the East?
They don’t have to sell the majority stake in proton, only sell the stake in tanjung malim plant. Geely or PSA can use the plant and proton’s brand to market in asean. If Drb really care about malaysian and how much we poured our tax and oil money, they won’t sell the majority stake in proton. Let’s see these cronies loyalty
“History has shown that collaborations between a smaller carmaker and a larger carmaker can revive the former’s fortunes. DRB-Hicom is confident that with the right FSP, Proton will enhance its brand equity can again be a successful carmaker as it was in the 1980s and 1990s,” he added.
^^^^^^ Kepala otak: Did Lotus’ fortune change when it was acquired by proton?
No fact.
Semoga industri automotif di Malaysia terus maju, kalau Geely yang menang minta diaorang bawa masuk Jackie Chan dan buat tarian singa Kung Fu menentang pahlawan viking dan kapal besar gedabak puak viking.. kalau PSA Peugeot Citroen yang menang, minta diaorang tubuhkan fakulti khas matematik perancis untuk semua staff proton yang masih lemah ilmu matematik dan bawa masuk lagenda juara dunia WRC, Sebastian Loeb untuk projek seterusnya, jadikan kereta proton sebagai kereta kebal pula.
Most of the bashers here either did not read or understand the article above. Funny why some people love to bash just for the sake of bashing, irregardless of what’s being explained.
It’s like getting rid of a bad penny, which no reputable car company wants. Flog the dead horse ! Proton does not posses the intricate knowledge & technology to come up with an indigenous car & never will. All they do is to badge engineer from other brands. Recently the latest DNA is to replicate a Baboons arse for the rear of their rubbish cars. A sensible deal would have been to sell equity to PSA Group, but we all know for political reasons a Chinese Car company will get it ! How fair is that ? Yet another not so level playing field !!! But the irony will be that Malaysians in the know will not go near a Chinese car, even the Malaysian Chinese will steer clear and opt or a Jap or Korean make. To keep the current Proton factory workers employed, they should hive off each factory to different car companies with a caveat that all employees will keep their jobs for at least 5 years. Also the so called ‘chicken tax’ duties need to be reduced.
Usahasama this and usahasama that, and the cars still look like crap. 30yrs of operation and given full support by the locals, Proton is still waaaayy behind.
Satu hari nanti Proton akan berjaya juga macam PSA Peugeot Citroen dan Geely Volvo… Peugeot dulu mula berniaga jual kopi, jual kain.. tetiba sekarang dah jadi kuasa besar automotif eropah, berjaya bangunkan brand Citroen dan jadi lagenda juara dunia WRC.. kereta terbalik, berguling-guling macam tenggiling pun masih hidup lagi.. Geely pula mula berniaga jual peti ais sebelum tiba-tiba dia pergi beli syarikat Volvo kebanggaan puak viking yang amat ganas jahanamkan penjajah British di zaman silam.. Proton paling kurang dah berjaya tundukkan ego puak penjajah British dengan miliki syarikat Lotus kebanggaan diaorang.. macai-macai semua tahu komen je kerjanya, sokong industri automotif tempatan kurang.. lebih nak bangga kereta buatan Jepun je kerjanya.. Semua perasan konon dah jadi Son Goku ke Ninja Naruto masa pakai kereta Jepun.. yang budak-budak baru lepas ambil lesen memandu pula dengan kereta Korea perasan dah jadi artis k-pop.
What did Geely do to Volvo? I saw great improvement to the swedish marque..
In East Malaysia(Sarawak), most people like PSA Group car because it has good sensitivy driving, quality, and take longer to have broken which doesn’t has a lot of complain about it from Customer. Beside, Peugeot cars has been common around there now but except Citroen. Thought that most people in Borneo using Honda, Toyota, or Hyundai but the Peugeot car has raise reputation there.
Proton is lucky to even have 2 companies wanna buy its equity. With its lousy models and outdated factory, it’s a great great lost to either Geely or PSA to acquire this garbage company. Best of luck to the winner of the garbage
Partnership with China???? Mana maruah melayu???