DRB-HICOM has presented their rationale for their proposal to buy 32.9% of Proton to the Cabinet commitee on transportation last Monday. Among DRB-HICOM’s plans for Proton if the government allows them to take over part of their 39% stake in Proton is the merger of Proton Edar and DRB-HICOM’s distribution unit EON, which also sells Proton cars amongst other marques.
DRB-HICOM says it can turn Proton into a profitable company within 2 years. DRB-HICOM also has no issues with working with a foreign partner in efforts to turn Proton around and lead it towards success. If no foreign partner is selected, DRB-HICOM already has existing working relationships with Renault and GM.
Other local parties interested in Proton include Naza and Mofaz, but DRB-HICOM is pretty confident in this matter. DRB-HICOM executive adviser of the groups automotive and component division Tan Sri Abdul Rahman Omar says he believes DRB-HICOM has a 100% chance, as it makes sense for the government to put Proton under DRB-HICOM considering the Government is a common shareholder in the three companies involved – Proton, DRB-HICOM and EON. Tan Sri Abdul Rahman Omar used to be Perodua’s managing director, and spearheaded Perodua’s restructuring in 2001, which saw Daihatsu and other Japanese companies taking up equity and management control of it’s manufacturing division.
In other news, Proton Holdings Berhad chairman Datuk Azlan Hashim said talks about Volkswagen being shortlisted as a forerunner for Proton’s foreign strategic partner was pre-mature, and no decision has been made yet. The decision will be made by the shareholders, and an announcement will be made when the board is ready.
Looking to sell your car? Sell it with Carro.
Where is due diligent exercise by VW toward one of DRB-HICOM subsidiary not long ago? A lot news but no results!
Joe, that was not VW, it was GM for Chevrolet Malaysia (Hicomobil).
Thanks for the correction, but so far also no news about this!
these deals involve alot of money and strategic planning, things take time. why are you in such a hurry?
wats the point if proton is under drb-hicom n in turn thy have a foriegn partner…??
izzint it beter if G sells its stake direct to a foriegn company??
man this is not gonna work..no local company is qualified enough to turn it around…this needs HUGE experience…so much uncertainty..first khazanah said vw is in drving seat..now its drb-hicom…this is nt good…loos like its a mess…n oso looks like alot of conflict within who to sell the stake to…
still thinks proton should go direct in serching for foreign partnership….instead of merry go round….within the few company thats had one major common stage holder….the government…..where's the logic????
DRB aaaaaaaaaa ,car assembler,
if that almost true la, proton will go classic edition, (
DRB aaaaaaaaaa ,car assembler,
if that almost true la, proton will go classic edition, ( cease production)
DRB will rebadge foreign car name proton,
but please nooo protection, anymore
"DRB-HICOM has presented their rationale for their proposal to buy 32.9% of Proton to the Cabinet commitee on transportation last Monday. Among DRB-HICOM’s plans for Proton if the government allows them to take over part of their 39% stake in Proton is the merger of Proton Edar and DRB-HICOM’s distribution unit EON, which also sells Proton cars amongst other marques."
Joe Ooi – The problems are P1 aging and stone age models can't sell in the market yet couple with unfavorable auto market and there are latest models in the market like MyVi that eat into P1 market share. Whether Proton Edar and EON merge or not, it won't boost the sales of P1 cars!
————————–
"DRB-HICOM says it can turn Proton into a profitable company within 2 years. DRB-HICOM also has no issues with working with a foreign partner in efforts to turn Proton around and lead it towards success.
Joe Ooi – This is the biggest cock talking by saying can turn around P1 in two year. Look at link below which is posted previously in other thread as well: –
http://www.asiaweek.com/asiaweek/97/0411/aa7.html
Quoted from Asisaweek, in 1997, DRB Hicom boss make this statement – "Toyota. Ford. Mercedes Benz. Proton? Malaysia’s national car wants to be world class. Saleh Sulong(interview), the new boss of Proton’s parent DRB-Hicom, aims to make it so."
That is 1997 (approximately 10 years ago), to make P1 world class on par with Toyota, Ford, Mercs once Tg Malim plant is completed! If they take over by Feb 2007,means to turn around on or before Feb 2009 – so this is 12 years different? If DRB Hicom can lead P1 to success, then it should done it 10 years ago. Today P1 shall be world class player "mint foreign currencies" to enrich Bolehland by fully utilize Tg Malim plant by exporting at least 1 million car a year! Where is this talking by Datok Salleh Sulong 10 year ago, and today send in new guy to talk about same old "success story"………..
Huh, huh, talk is cheap………………….
Look at DRB Hicom webpage: –
http://www.drb-hicom.com/net1/pubshr/pubstore/tmp…
Look at investor section,
Net(loss)/profit attributable to sshareholders for end March 31
2005 – profit RM 141.407 Million)
2006 – loss (RM 203.981 Million)
Currently P1 losing around RM 80 million per month. That means if P1 unable to increase export market yet domestic sales shrinking, and the likely scenario is the losses is at least maintain if not increase. DRB Hicom have to bear approximately 1/3 (based on proposed acquisition of 30% ++ of P1 share) x RM 80 Million = to bear loses of around RM1 million a day! Current DRB-Hicom also at loss how to turn around P1 with bigger loses?
————————–
“If no foreign partner is selected, DRB-HICOM already has existing working relationships with Renault and GM.â€
Joe Ooi – If no foreign tie-up means the worst – no transfer of technology, no new model(s) at least assist by foreign partner but current bad quality issue will not resolve. That means Proton Edar or EON or merge entity will sale P1 existing models as well as any brands under their stable.
What tehnological synergy DRB Hicom can gain from Renault and GM except selling their cars? How DRB Hicom that is basically is a car distributor only is able to help P1 to turnaround without foreign tie up given P1 desperately need tech transfer?
—————————
"DRB-HICOM executive adviser of the group’s automotive and component division Tan Sri Abdul Rahman Omar says he believes DRB-HICOM has a 100% chance, as it makes sense for the government to put Proton under DRB-HICOm considering …………………."
Joe Ooi – If it make sense if P1 put under DRB Hicom, there is likely one “miracle†they hope for: –
If VW come in as technology manufaturing partner with P1 and produce new model(s) for Proton just like Skoda, that means DRB Hicom if succeed in control P1 marketing arm through EON/Proton Edar can become dominance distributor for cars again in our local market. This will generate income to overcome it current loses. Failure to secure P1 share by DRB Hicom will lead to bleak future as other brands under GM (Chevy) and Renault not doing well!
Instead of DRB Hicom turnaround Proton to become “success†within 2 year, the real WHITE KNIGHT is if VW come in, it will turn around BOTH DRB Hicom (if they succeed in take over the 30%++ P1’s share) and Proton which are both currently facing hundred of million loses. No foreign tie-up means DRB Hicom come in just to screw up the situation only! No more no less ………………
“Conspiracy Theory†– The real scenario is DRB Hicom desperately want P1 marketing arm because it view if VW controlling P1’s manufacturing arm, it will at elast indirectly turn around and save it future. “But don’t treat VW is dumb and can’t smell what DRB Hicom is cooking stinking dish……!!!!!!!!†This is the real logic ………
Let this corporate crocs put up any show or cock talking as they want. But for us as consumers …. STOP THE BUYING = STOP THE SUCKING.
The local players are trying to get on the bandwagon because they know that if VW – P1 deal materialises, they too stand to gain from it in terms of the chances to sell the VW cars, and what's not.
When P1 was struggling, no one bat a finger to help or offer of assistance. Until news got out that VW and PSA is making an attempt to go into P1.
Well, VW is not dump either. After the successful JV with the chinese Gov., the local scene is "peanut" to them…
Hehehe, as per my previous post somewhere in November:
"Hehehe, DRB have not enuff money, no expertise, no knowledge, no capabilities, no network, no infra, how can it give synergies and help Proton……Its getting funny and funnier each day………
DRB, go revive your Alam Flora, Intrakota, Chevy, MTB, AMM, KOMNAS 2020, DEFTECH, Master Carriage, ACM ( need me to list more of them…) before coming to this deal, pity them no work n job maaaa………."
talk kock sing song ahlong along………… go help your subsidiaries ler, jgn menyibuk nak revive/turnaround company orang lain……….
The best and ideal thing to do is:
1- Proton takeover Perodua and UMW auto division ( assump. Proton have a lot of money )
2- Enhancement collaboration and alliance with Toyota
3- Compete against the upcoming sleeping giants of Korea and China
4- Slowly, Conti cars demand is diminishing due to high cost, maintenance and fuel consumption. They r in the verge of death.
I think this will be the solution for the long term period ( 10~20 years )
Without prejudice, my opinion only.
MOFAZ, DRB, NAZA, VW, PSA, why dont u guys make your own alliance………
NAZA n DRB have manufacturing facilities as well, which was much needed by VW n PSA, so tunggu apa lagi….Achtung!!!!! bon voyage!!!!! Malaysia Boleh!!!!!
Tak payah lah tunggu Proton…….
proton has no confident transorming vw tech for batter proton….(i think)
thus the easier way, is to let DRB do their normal job, rebadging car, what ever citroen / pug, chinese, korea, -all it need is badges
DRB want to dominate the distribution, i agree with joe,
here i think vw will go on their own, tech transfer?, well history can tell laa, boleh janji one , to give 100% its cream of tech ….no la . if they really give aaa.., to put on screw and bolt and wire is not the vw, its proton, so far anything goes for real??. .. cant be ahead, cant compete,….just stop it….
existing model has to be sold in whatever creative way, like the remainig rover selling with a very huge discount,
talking about vw take over, simply to cover the loses of unused facility,inconjunction with the ceasing of existing proton model,and to reduce the plant since its to big for local + small export(if one)
51 strength-vw concentrate export vw to japan,
-remaining share is rebadging business, (tech no la actually ,gimmick saja, just look at inokom, naza, macam biasa la..look simmilar)
if vw fail here, they ll go back, perhaps open the deal for other manufecturer BMW, CHRYSLER, or other bin name to sewa premis,
rebadging here, simply just another ordinary CKD foreign car, with proton can rebadge any thing MPV, LORRY, BUS with proton sticker, for local,
so with the badge, literally to say the proton alive, yes,,,
-BUT still again a question,
vendor
labour
model
and
a capability to compete with outside cheaper assembler? (another playback of the old cassette)
conclusion …….vw cover some loses, DRB giving a simple formula keep the car rolling, but still its a fate to see ,how it perform in an open market,in term of price, quality, and quality of management,….but itu pun just pasaran tempatan sahaja……(just another tale)
nite,
zzzzzzzzzzzzzzzzzzzzzz.
hameed koyakuti said,
December 18, 2006 @ 12:33 am
The best and ideal thing to do is:
1- Proton takeover Perodua and UMW auto division ( assump. Proton have a lot of money )
2- Enhancement collaboration and alliance with Toyota
3- Compete against the upcoming sleeping giants of Korea and China
———————————————————–
batter tought here hamid!
Why HICOM want to venture again into PROTON, is that it exited few years ago and sold all its stake to the government?
Other manufacturers boleh bungkus ler ini macam……just read my article below…….that will support my earlier proposed takeover theory……..P1 takeover P2 —> alliance with Toyota —> globalisation…..
" we dont want to be no.1 to beat GM, we want to be no.1 to our customer……"
http://thestar.com.my/news/story.asp?file=/2006/1…
Thursday December 14, 2006
Japan's Toyota hot on heels of General Motors as world's No.1
TOKYO (AP) – Looking at the year ahead, there's no stopping Toyota. Analysts say 2007 could be the year the Japanese manufacturer surpasses General Motors Corp. as the world's No. 1 automaker in vehicle sales.
Soaring oil prices have drivers around the world snatching up gas-saving Toyotas with a reputation for reliability, like the Camry _ the best-selling car in the U.S. nearly every year since 1997 _ and the Corolla, the world's top-selling car.
To keep up with demand, Toyota Motor Corp., which passed up Ford Motor Co. as the world's No. 2 automaker in annual sales in 2003, is opening new plants in Russia, Thailand and China next year.
"Everything is going right for Toyota in every way possible,'' said Yasuaki Iwamoto, auto analyst for Okasan Securities in Tokyo. "Toyota has carved out a reputation for reliability and quality.''
The numbers tell the story.
Toyota expects to sell 8.85 million vehicles worldwide this year. It won't announce vehicle sales targets for 2007 until Dec. 22, but earlier said it aims to sell 9.8 million vehicles globally in 2008.
General Motors Corp. doesn't give vehicle sales targets but sold 9.17 million vehicles globally last year, the second-largest volume in company history.
Toyota is expecting a US$13.4 billion (euro10.1 billion) profit for the fiscal year ending March 2007. It posted a US$11.8 billion profit last fiscal year, marking its fourth straight record income.
GM's situation couldn't be more different.
The U.S. automaker is undergoing massive restructuring after racking up more than $10.6 billion in red ink last year and losing US$3 billion more the first nine months of this year.
GM says the perception that its cars are gas-guzzlers is unfair and inaccurate. The Detroit-based automaker, which has begun an ad campaign to fight that perception, has its own share of fuel-efficient models, such as the Saturn Vue Green Line hybrid.
The company said it is focused on its turnaround plan and won't make decisions for the sake of keeping its global sales leadership.
"We're focused on remaking GM into a more competitive, leaner company that can generate profits on a sustained basis,'' said spokesman Brian Akre. "We won't alter our North America turnaround plan or sacrifice our profitability for the sake of one superlative.''
General Motors is also far ahead of Toyota in China, the world's third-largest auto market behind Japan and the U.S. Last year, GM had 11 percent of the Chinese market while Toyota had just 3.5 percent.
GM already has five joint venture assembly plants that make nearly all GM vehicles sold in China and plans to spend US$3 billion in 2004-2007 to expand operations.
But Toyota is also investing in China and aims to roll out the remodeled Corolla next year there – and around the world.
Meanwhile in the U.S., Toyota is encroaching on GM's turf. A decade ago, GM controlled about a third of the U.S. market while Toyota had barely 8 percent. Today, GM's share has dwindled to 24 percent.
Toyota's zoomed to more than 15 percent.
This year, Toyota won top honors in eight of 19 categories in a J.D. Power and Associates vehicle dependability study _ more than any other company. Toyota's Lexus luxury brand was the top-ranked nameplate for the 12th consecutive year.
And with the renewed consumer interest in environmentally friendly cars, Toyota has done well with its Prius hybrid, which went on sale in 1997 and delivers about 51 miles per gallon.
Toyota officials say beating GM isn't on their minds.
"Our goal is to become No. 1 with the customer,'' said Toyota spokesman Paul Nolasco. "The increases we are experiencing in production and sales is simply a reflection of consumer demand.''
But Toyota has seen its reputation take a hit recently in a rise in recalls, partly as a result of successful cost-cutting that involves many models using the same parts.
Although Toyota's production methods are emulated by other companies and studied at universities, it has been struggling lately to maintain quality as it expands production – a signal of possible danger ahead. President Katsuaki Watanabe has repeatedly promised to beef up quality controls.
To keep up with the burst in demand, Toyota will be opening new plants next year.
Its first auto plant in Russia will start producing the Camry. Toyota in Thailand will add another plant, its third there, to produce pickup trucks. A new plant in China will produce a compact that Toyota has yet to disclose.
In the U.S., the first Tundra pickup trucks rolling off of Toyota's Texas plant will arrive in showrooms in 2007, a sign of Toyota's ambitions in a lucrative sector dominated by American automakers.
Toyota has used its ample coffers to purchase significant stakes in two of GM's former Japanese alliance partners _ Fuji Heavy Industries, the maker of Subaru cars, and truckmaker Isuzu. Toyota will be even using Fuji's Indiana plant to make Camries starting in spring 2007.
GM used to be the top shareholder in Fuji, but sold its entire 20 percent stake last year as part of its efforts to raise cash for restructuring. Toyota bought an 8.7 percent stake in Fuji for about US$315 million to become the top shareholder.
Last month, Toyota bought a 5.9 percent stake in Isuzu Motors Ltd., well-known for its diesel technology that Toyota is eager to gain – half a year after GM sold its entire 7.9 percent stake in Isuzu. Another symbolic contrast can be seen in the companies' relations with workers.
Over the years of growth, Toyota has never resorted to layoffs, vowing never to repeat the massive voluntary retirements that came during troubled times in 1950, and the company has won worker loyalty in return.
Toyota is among the exceptions among major Japanese companies that have stuck to that policy, although the once standard lifetime employment practice has unraveled in recent decades.
GM, meanwhile, has been negotiating severance packages, including early retirements and buyouts, with thousands of workers during this past year in an effort to turn around its North American operations.
Bill Schwartz of TBM Consulting, a Durham, North Carolina-based company that teaches Toyota production methods to corporate clients, says Toyota has been building its business for decades and is now almost certain to beat GM in attracting more buyers to its cars and trucks.
"It's unavoidable it will happen soon, and it will very likely happen next year,'' he said. "Toyota's curves are all going in the right direction. And General Motors' are all going in the wrong direction.''-AP
Other manufacturer boleh bungkus ler………this article support my earlier proposed takeover theory.
P1 takeover P2—> alliance with Toyota —> globalisation
http://thestar.com.my/news/story.asp?file=/2006/1…
" We do not want to be no.1 to beat GM, we want to be no.1 to our customer……." perghhh, Toyota's attitude….
DRB trying to screw-up PRoton again, alibaba style.
Just leave it alone,
and let VW take over for the Rakyat!!
OMG…. dun let DRB buy p1. Let VW take over. I just can see 2 years down the road gov will have to come of p1 resque again if it falls in DRB hands. DRB only selling lorry rite? Oh nuuuuooooooo…… this bumi company need to have bumi management crap sure will come out again!!!
Proton's main competition is TOYOTA. Internal cannibalisation, direct competition from Perodua (Rebadged Daihatsu) and squeezing from on top by Avanza!
LIAR LIAR LIARx 100000……x10000000 times.
Come on lah DRB-HICOM, you are worry about your 60% business network will be got if other TOOK over PROTON (example NAZA), you are not HELPING PROTON to turn over lah. LIAR!
How can this DRB turn PROTON Around?
DRB can only turn "PROTON" into "NOTORP", just turn around the NAME lah. JANGAN TIPU ABB lah.
Cheer!
Whatever happens, the Proton board and the Gov shareholders must place the interest of the local automotive industry ahead of everything else. After 20++ years of local management any foreign participation would be welcomed. For me, after months of VW / Peugeot speculation to see DRB-Hicom walk away with it would be a real anti-climax. Way I see it is it will then be a make or break situation. If they (DRB) fail to turn things around it'll be value destroying for both DRB and Proton.
If VW buy Proton, then whoever buy Proton Holding will also get easy money. DRB, Naza, Sime or Mofaz will just need to come out with the A&P and becoz the product is already good, the car will sell byy itself. That is why all parties are interested enquiring Proton Holding.
Of course all of them can turn Proton around within 2 years provided Proton Manufacturing (VW) can produced new models within 2 years. Just imagine a Passat for just RM100K or a Polo at RM45K (not neccesarily exact model but more on sharing platform, tech, parts etc).
This is a 'game' for survival. 4 of them can see the money and it will be stupid if they don't try their luck. Naza is desperatly need Proton becoz their 'core' business (AP) will 'expired' in 2010. DRB needs Proton becoz they need to revive EON. EON once is the major earning contributor to DRB.
Sime and Mofaz are just trying their luck. I believed both Sime and Mofaz won't win the race.
In the other hand, Govt may not sell Proton Holding and the shares will remained with Khazanah.
Instead of us condemning DRB for trying to turnover Proton, what is u guys idea on who should really takeover and turnaround Proton….??? Idris Jala or Dato Tony Fernandes ( maybe )………..hehehe…………lets go for more constructive discussion, hopefully somebody from P1 or G will take note our suggestions………
i think government should appoint foreign ceo of defunct car-maker company.
just like sony (then again the company oredi in trouble over quality issue before this mat salleh take over).
if they wan2 local to take over, get a chinese biznesman.
they usually veli good in bizness
look at mascargo, oredi untung when this chinese man come..
veli lihai wor….
If tie with local's confirm die…..they are only interested in squeezing the locals for more $$$…..more tax on foreign….etc. That's how they wanted and the only strategy………what else they know….I don't think they knows how to runs a business…….only got protective this and that which they survive….if this kind of company in overseas….already wind up long time ago. Proton already have bad enviroment which cause it's down fall….with those companies interested…the outcome is about the same.
In order to survive they will need someone ( foreign ) who can take cares of things with no red tape …