VIDEO: Proton is too big to fail – PM Najib Razak

During a recent social media broadcast, prime minister Datuk Seri Najib Tun Razak said the government would ensure the continued survival of national carmaker Proton.

At the 25 minutes 15 seconds mark of the near hour-long video, he told a gathered crowd, “that which we have to save, we will save. Too big to fail. Proton is too big to fail because the ecosystem is large. We will make sure Proton survives, but we will restructure it to make Proton competitive.”

“If you sell 70,000 cars, you cannot survive, ladies and gentlemen, you cannot survive. 70,000 cars, how is it possible? But it’s too big to fail. So, we support. We provide money. How much? RM1.5 billion? I think about RM2, almost RM3 billion injected into Proton. Must. Failure privatisation in those days, we rescue,” he ended.

Last year, Proton entered into a strategic partnership with Zhejiang Geely (ZGH), with the Chinese company set to acquire a 49.9% stake in the national carmaker. We’ve detailed what’s in store for all parties involved, including DRB-Hicom, in a separate post previously.

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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

  • Proton oh Proton on Feb 23, 2018 at 10:22 am

    Because of you (Proton)… rakyat pay for high car price…
    How long still want beggar…?

    Like or Dislike: Thumb up 50 Thumb down 2
    • John Baoteng on Feb 23, 2018 at 3:49 pm

      Proton sales history (including export 1985-2004, 2006 onwards only local sales from MAA stats)

      1985 – 7k
      1986 – 24k
      1987 – 24k
      1988 – 42k
      1989 – 53k
      1990 – 75k
      1991 – 97k
      1992 – 93k
      1993 – 110k
      1994 – 129k
      1995 – 160k
      1996 – 190k
      1997 – 218k
      1998 – 116k
      1999 – 182k
      2000 – 192k
      2001 – 223k
      2002 – 227k
      2003 – 169k
      2004 – 175k
      2005 – 174k
      2006 – 115k
      2007 – 118k
      2008 – 141k
      2009 – 148k
      2010 – 157k
      2011 – 158k
      2012 – 141k
      2013 – 138k
      2014 – 115k
      2015 – 102k
      2016 – 72k
      2017 – 70k
      2018 – ???

      Like or Dislike: Thumb up 15 Thumb down 4
      • “200,000 units by 2020 and 300,000 units by 2023 before arriving at the 400k mark in 2027.”
        – Dr Li Chunrong, PHD holder.

        Like or Dislike: Thumb up 18 Thumb down 4
      • Bell curve!
        Like human metabolism rate by lifespan … shrinking as you get old. Looks like p1 days are numbered!

        Like or Dislike: Thumb up 8 Thumb down 1
  • “too big to fail because the ecosystem is large.”

    He shud do better to explain what that means. whereby P1 vendors r oso suppliers to other brand inc non nationals here as well. And if P1 falls, they fall too and entire automotive supply chain for all other brands P2, Toyota, Honda, Nissan, Mesidis, Volvos, BMW, Pijot, Renault, etc will come crashing down like a house of cards.

    Like or Dislike: Thumb up 34 Thumb down 11
    • Ryder0707 on Feb 23, 2018 at 4:35 pm

      Statement must be consistent oso.
      https://paultan.org/2017/03/02/proton-a-failed-white-elephant-project-nazri-aziz/

      Like or Dislike: Thumb up 15 Thumb down 0
  • drMpower on Feb 23, 2018 at 10:35 am

    The volume issue was known so many years ago
    Whats new?
    Infact the last team did tried to tackle this volume issue. They went to china, chile, pakistan, etc trying to create that market.

    And also injection 2 – 3 billion isnt that much compared to what proton gave all since 30 years ago
    This guy really not having any clue what he said about saving proton

    And also the other bigger problem with this guy is a bit more basic. Very big trust deficit

    Like or Dislike: Thumb up 14 Thumb down 3
    • Proton is too big to fail.
      Ini barulah… Good job predecessor !!

      Like or Dislike: Thumb up 2 Thumb down 0
  • Ahmad on Feb 23, 2018 at 10:50 am

    Close shop better.. only perodua & honda we trust..

    Like or Dislike: Thumb up 19 Thumb down 11
  • Proton is already a failure in the eyes of Malaysian and the world

    Like or Dislike: Thumb up 30 Thumb down 5
  • P1, Geely, Mesidis, VolvoCar, VolvoTrucks, Lotus > all

    Like or Dislike: Thumb up 13 Thumb down 7
  • Burong on Feb 23, 2018 at 11:13 am

    I wish Geely can change Proton brand to medium high standard car maker. Currently Proton is consider a medium low branding, so those who is financially capable won’t consider Proton as their status car.

    Branding is very important for current stage, if you fail once, it takes 10 or more years to recover the fault you had made just to recover back the branding.

    Like or Dislike: Thumb up 12 Thumb down 2
    • Proton oh Proton on Feb 23, 2018 at 4:19 pm

      its not all about the branding only.. the quality also have too improve

      Like or Dislike: Thumb up 8 Thumb down 0
  • 6.2% increase in income? come on, that’s just the normal annual salary increment rate la…haaa

    Like or Dislike: Thumb up 1 Thumb down 2
  • Casey Qing on Feb 23, 2018 at 12:05 pm

    Last time when it was under DRB, Government will lie to us saying it was in private hands but still give billions in bailout.

    Now even better, not only it is in private hands but also in foreign Geely hands, I don’t know why Government have to use out tax payers money to give Proton bantuan all the time.

    Let Geely look after Proton. After all Geely made USD$30 billion in profits last year. It is their job to look after their subsidiaries.

    So why is the Malaysian Government poking their nose into Proton’s matters?

    Like or Dislike: Thumb up 21 Thumb down 8
    • U got ur history all mixed up again.

      Gov gips help when it was still under local ownership. Now under Geely, gov no longer gips such help except for R&D initiatives that they oso gip to others as well.

      And for godsakes, please read lar the articles b4 u bash. PM only mentioned about P1 becoz he was ASKED about it.

      Like or Dislike: Thumb up 16 Thumb down 6
      • Pity those loyal & hardworking P1 vendors / suppliers. Hope they fairly compensated..

        Like or Dislike: Thumb up 1 Thumb down 0
  • All in Proton breathe sigh of relieve. Nasib baik…

    Like or Dislike: Thumb up 2 Thumb down 2
  • malaysianz on Feb 23, 2018 at 12:17 pm

    Proton wont fall if under Geely management, may get profit too. cut off unnecessary expenses will help to boost proton profit.

    Like or Dislike: Thumb up 8 Thumb down 1
  • 1malaysia on Feb 23, 2018 at 12:34 pm

    Malaysia is too big to fail too

    Like or Dislike: Thumb up 2 Thumb down 3
  • najib on Feb 23, 2018 at 12:42 pm

    A failure talking about a brand that is going to fail
    How ironic

    Like or Dislike: Thumb up 4 Thumb down 8
    • Do elaborate how did he fail. So far, 5.9% GDP and 6.9% EPF is far from failure if compared to 3.5% GDP & measly 2.5% CPF.

      Like or Dislike: Thumb up 11 Thumb down 3
  • Talapua on Feb 23, 2018 at 1:04 pm

    The fact that most malaysian not interested to buy second or third cars with proton or perodua. They looking for imported and continental for prestige and satisfaction. This is human desire that god give and could not be control by any human.

    Like or Dislike: Thumb up 8 Thumb down 3
    • jepunis badges have no prestige, no satisfaction in driving underpower jpunis cars

      Like or Dislike: Thumb up 5 Thumb down 3
  • chiakc on Feb 23, 2018 at 1:08 pm

    however terrible the way government/hicom manage proton past many decades, still we should wait and see if new geely led management can bring good changes in proton.

    consider boyue alone sold more than 250,000 units in china last year, that almost half of malaysia TIV. boyue may not perfect but it is good product to start with.

    if new merit minded management can change top down, and deliver competitive pricing, good quality product, good service, and better taste kangkung in their canteen, surely proton can move forward.

    proton opt to bring down part suppliers uncompetitive pricing, upgrade 1s centre for example, those for me is good news. ultimately our consumer wins.

    please do not take our pm word too seriously, because it is just politics.

    Like or Dislike: Thumb up 20 Thumb down 3
    • He probably said that becuz he trusted in Geelys plan and saw the progress towards it.

      Like or Dislike: Thumb up 12 Thumb down 1
  • Malaysian Driver on Feb 23, 2018 at 4:02 pm

    At least he tried to save workers from losing their job

    Like or Dislike: Thumb up 5 Thumb down 2
    • Indirectly. It still depends on Geely to turn P1 around. But at least he let go of P1 to foreign hands, knowing that its future is assured.

      Like or Dislike: Thumb up 4 Thumb down 2
      • Gov to provide more cash injections to Geely mgmt for P1 to survive..

        Like or Dislike: Thumb up 0 Thumb down 0
    • John Geli on Feb 23, 2018 at 5:12 pm

      EIS (unemployment insurance) can take care of the Proton workers in case of close shop.

      Make full use of EIS money by Socso.

      Adat berniaga, bila gagal sila bungkus.

      Like or Dislike: Thumb up 7 Thumb down 3
  • Cikgu Ahmad Che Mat on Feb 24, 2018 at 12:01 am

    More like……P1 with tongkat all these while, still can fall (again).

    Yes?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Hermes on Feb 24, 2018 at 10:06 pm

    Rosmah is too big to fail eating

    Like or Dislike: Thumb up 1 Thumb down 3
 

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