Proton Holdings Bhd’s board has decided not to renew Tengku Tan Sri Mahaleel Tengku Ariff’s chief executive officer contract which expired September 30.
Mahaleel had been in Proton since 1996 when he joined as vice chairman for strategy and operations. Then, he was appointed CEO of Perusahaan Otomobil Nasional Sdn Bhd and subsequently as group CEO of Proton Holdings Bhd in April 1997.
Proton chairman Datuk Mohamed Azlan announced the decision today after it’s board meeting in a press conference in Shah Alam.
Tengku Mahaleel
With effect from tomorrow, Tengku Mahaleel will be put on leave until the end of his tenure on September 30th.
Datuk Azlan said the decision was not because the board was unhappy with his performance, but it is just a case of not renewing his contract.
The board had resolved to make changes to the management structure and leadership of Proton.
Datuk Azlan said:
Proton is an institution and not about individuals. We have many capable people within the organisation and, as you can see, we decided to appoint two of the senior staff to be joint chief operational officers. Its about setting the platform, its about succession.
To perform the functions of CEO temporarily, a four-member exco comprising of two Proton board members and two senior management representatives was formed. The members are chairman Datuk Azlan, Proton director of operations Datuk Kisai Rahmat, Proton director Badrul Feisal Abdul Rahim, and Proton Tanjung Malim chief executive officer Datuk Kamarulzaman Darus.
L-R: Datuk Kamarulzaman Darus, Datuk Kisai Rahmat
Malaysia former Prime Minister Tun Dr Mahathir Mohamad would stay on as special advisor.
Proton is looking for a new CEO, preferably with an engineering background, but it is not a requirement. Both Kisai and Kamarulzaman have Bachelor Degrees in Mechanical Engineering.
Toyota’s head man was an engineering/manufacturing person and look where he has brought Toyota. Hopefully this will bring some good change to Proton. Could it be a Mat Salleh?
Whoever replaces him, Tengku Mahaleel has had this coming for quite a while already. Although whether it is his fault is debatable, but he is detrimental to Proton’s brand image as a whole. For real true change to happen, he has to go.
On the requirements of the CEO candidates, Datuk Azman said:
It can be from within, it can be from outside. It can be Malaysian, it can be non-Malaysian, it can be female, male; it doesnt matter. Whats important is to clearly understand what are the requirements for the company and, thereafter, to meet those requirements.
Tengku Mahaleel won the Malaysian CEO Of The Year Award in 1999.
I would say that whoever sits in the Proton CEO chair is in for a crazy ride. It would take more than Carlos Ghosn to turn it around. The Nissan head job can be focused entirely on business but Proton’s head has to meddle with a mix of politics and business with the whole thing about Proton being the national car, national pride thing.
If it is from a pure business perspective, Proton could easily slam and sack underperforming suppliers but I doubt it is the case here, where Proton seems to expected to provide Malaysian suppliers with a rice bowl no matter how slacky they are.
If overseas suppliers like factories in Thailand could make it cheaper than suppliers in Malaysia, a business-focused Proton CEO could choose the overseas supplier instead. It makes business sense.
But no, with politics, pride and “national duty” coming part and parcel together with the national car manufacturer, it’s likely the new Proton head will be unable to do that. Proton will be a tough beast to set on the right track!
Source: The Edge Daily
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Way to go! Good Luck Proton! Remember Ghosn?
well paul….
i see why people 'kutuk' our car like tin milo….
i get the picture.
oi i help you uncover the milo tin setori !!! wai no plug me !!! *howlssss*
Here in Lotus, people are already aware of this development, and everyone seem to be a bit relieved with TM's departure. A very good move by the Proton board…let's just hope this would be a new beginning for Proton, and would pave a new road for our 'beloved' national car in going forward and face globalisation.
Nonono , its rather unfair to blame TM for all Proton's fault…
I'd say , reorganize Proton. JUST LET VW BUY YA' WILL YA?
VW can provide those needs to Proton =/
Sad.
Dear all,
I will resign soon because I am getting old now.
Not a surprise, PROTON need ENGINEERING people to role to company. AUTO industrial needs much SKILLS in terms of Technical design, R&D capability and products future plans (Electrical Vehicle, Cost reduction with value added products……etc). I am not capable to understand these basic requirements, therefore I must leave now.
I hope the qualified CEO will not repeat my mistakes and I will try my best to support him with my past experience in AUTO industrial. Don't Cry for me.
So long PROTON. Good bye2!
the main question is..
WHO'S THE NEXT CEO?.
possible candicate?
hehe.. Apperentice for the next CEO.. gonna be a good Reality Show.. haha..
This CEO doesnt know how to run a car company. That's all. He probably will do well now selling rotiboy.
As for cutting cost and increasing quality, there are various ways to achieve that. Bring good supply/parts manufacturer here to msia to start a plant. Force local supplier to buck up or lose business, etc.
Many of us want to be proud of proton. The smartest thing it ever did was to buy lotus (it's a tragedy that Tan Sri Yahaya Ahmad had passed on). If only somebody in proton and lotus has the sense to shake things up, there could be a glimmer of hope.
We all just wait & see, cross our fingers.
All in all TM had done some good job charting Proton in auto world. He only forgot about quality, design, performance..banyaklak..QC dept. tu close ler… Anyway, CEO don't just run a company blindly…there's always d Chairman and Board advising d decisions. They go out too eh !!!
Sorry for TUV to gamble their reputation in Savvy…
Well said paul. Proton is not being run as a business. I met with Proton recently and an official told me how vendors get jobs. When a job is tendered, a vendor quotes his bid at a ridiculously low level, despite not having the expertise. When he is given the job, he asks Proton if he can raise the prices because it doesn't even cover his costs! When Proton says no, u make it at the price u bid for, that's where all the shoddy quality comes from. The vendor ignores quality and starts to short-change Proton.
The stigma of so-called 'social obligation' is endemic to GLCs-Proton, Telekom, Tenaga…if this companies are allowed to run as businesses, they could fly really high, believe me…just look at the banks, although they are GLCs, they hardly have the social obligation stigma…Maybank, Commerce Asset
mahaleel is a charismatic man, no doubt about it. the thing about mahaleel is that he's too abrasive and confrontational. even his managers are actually scared/sick of him. there was this one time, at a function a group of financial analysts were sitting at a table there were two empty seats. A senior manager came over to them and ask if one of the seats was empty. so somebody yes, pls do have a seat. then he asked if somebody else was sitting at the other seat. an analyst said yes, tengku mahaleel. the manager actually said he's going to get some other seat at another table and told them (cynically) to enjoy mahaleel's company…..
The man who head any company is the man who's in charge of the company performance. Ghosn prove it. But another thing in Proton i would like to suggest. They lack of customer feedback. I remember one of my friends bought Daihatsu Mira L2 before Kancil was introduce. Daihatsu and the not more than 150 buyers required to sign an agreement. It stated that they have to give feedback, comments on the car. In two years time, the buyers cannot sell the car. It works. Perodua came out with revised Kancil which suit the need of most Malaysian thank's to the feedback and comments from these users. Wonder if Proton ever do it. Remember Tiara? Remembar Arena? For sure, remember Juara? They forgot to include survey and feedback in their R&D. Better late than never. Proton must do it now. It is very important because Malaysian will buy these car, and this is the main source of information Proton neglected for a long decades.
at last..heheh
I beg to differ. I think TM has done a world of good for Proton. He's just been made a scapegoat. He turned Proton from an assembler (a job Proton was adept in the helm of the late Tan Sri Yahya) to a car manufacturer. He is not perfect, like you and me. When you look at it from another perspective, TM gave Proton 'balls' to progress. He gave it vision and direction. If there is one thing Proton needs to change is certain quarters of its inefficient workforce. The last thing Proton will ever need is a CEO, chosen by the Board, a puppet under the influence of the Government/Khazanah/whatever crap bull team of inept lazy-ass mofos, who think they can build cars. Proton is run like a GLC. 100%. A unproductive, overweight monolith of a Company. Needs a major trim, me thinks.
Whoever is going to be at the helm of Proton, let's hope he gets his hands dirty at foundation level, because mentality needs to be changed there. Excellence needs to instilled at there. Perhaps give every employee a copy of 'The Toyota Way' or something. I dunno. Do something different.
Like TM did something different.
Sigh.
Hopefully the next CEO will bring Proton to a new level, especially quality wise and choice of model to be sold. I myself drives a Proton. My Waja is my second Proton after my trusty (and rusty) old Wira. Proton just need more no nonsense car which is spacious, easy and cheap to maintain, good fuel economy and good handling dynamics, like the Waja 1.6. That's why (I think) Waja is a bigger success than the newer Gen2 (cramp rear headroom) and Savvy (Renault engine ; I think Malaysian is not ready for this engine, especially after hearing bad stories from people who owns a Waja 1.8).
I agree to Verne's statement above, TM been a revolutionist for Proton, according to The Star, it seemed that he was the only CEO who had guts to make own cars instead of assembling, so i think as Verne said, TM has been made scapegoat, and all we see is just a drama, all lies, but then i think Perodua truly rocks!
whoever become CEO, i think it will not make very big different, if 'potong' still neglects customer feedback & crap vendor quality issue. Quality does not mean no defects then is good already. it also include the reliability & material used. The contract agreement on feedback is a very good move in terms of improve 'potong' quality. 'Potong' see what ur new satria replacement & savvy can do…. haha…*_*
we need a true bussiness men to fillup the position..
I believe in low profile millionaire in malaysia outside ther..
maybe :
Syed mokhtar al bukhory.. why ?.. because he's the almost hardworkers and not kind of boros.. even he is jutawan.. he only used his first and old benz.. and the perdana only.. While others using super duper car..
Anatha Krisnan? those owner maxis , air asia (oh tony fernandez too) .. because they already prove their company and vision is done.. and also air asia chairman those ex great JPJ director that has clean-up JPJ's from corruption = Pahamin Rajab.
YTL corperation owner? Dato… aaa chinese.. i forgot the name.. already has an empire of business even in HK etc..
This all kind of person bove a more to business man.. not so political.. proton need a businessman.. not politicalman..
Whoever be a Proton CEO.. even i'm a malay.. i really open if it's notn malay as CEO.. Just to make all the thing great!..
no racism ok.. (yeah..i know the gov. )
Yahooo TM out……..!!!! But Yahoooooo if Dr.M out as welll!!!!!! Good news for Proton Quality!!!!!!!!!!
you are kidding. the day a non-malay runs Proton, will be the day Bin Laden take over USA
that why i said.. "ii know the gov. :p )
Well I believe that Proton Board of Directors @ KHAZANAH in particular had done a huge mistake for letting go such a visionary person like TM. Not that no other candidates can replace him, but somehow we have seen numerous incident head by KHAZANAH (i.e. RENONG) end with failures. They put only those who can abide to their command and disregard the fact for company's development. In other word their main task is to gain "Speedy Profit" all this while.
Back to TM, it is a great lost to Malaysian Automobile especially PROTON if they do not know to value his capability in steering the company. If BN claims that Malaysian is a democratic country, than voicing public right is not an offence. He (TM) being penalise just because he is too vocal on the fact and that really put somebody "ASS" on fire. Well in this political games, there is always someone to be blame and to be nominated as HEROS.
I have seen enough on this unfinish conspiracy of KHAZANAH. The truth is we public should be made known what is happening in the Government structure of monopolizing the market. Wake up Malaysian, with all your pleasant complaints about PROTON has significantly bring down your own pride towards Malaysian capabilities to be leader in the Automobile industry. You rather see foreigners invating our national treature and that is really really discusting!
Now, Malaysian people are back to basis, we are no longer decide n our own vision but allowing others to plan for us. What a waste. No mater what TM, we think you have done your level best to deliver your message to all Malaysian, just that these people are still blinded by certain culprit tend to stand behind the storyboard.
So long TM, and again I should project you as a person with dynamic vision and capable enough to lead the company wth minimum supervision ot like those monkeys up there!
If my statement is to vocal than I may have the same faith like you than. The current concept now is to SHUT YR MOUTH and follow the flow. No offent readers, only IDIOT will agree with this statement.
Adios….TM
i think TM has his good and bad point lah. The good is he try to change proton to become a self reliance companyand really make malaysian produce proud. But he forgot the customer feedback and keep pushing for new model, until sales slow down. IMHO, the board give him final chance after the AP saga in chinese newspaper, something like " Sell a lot of Savvy, or OUT". But Savvy sucks so much, he (and Dr. M) also mute looking to comparison of Myvi and Savvy (60,000 booking vs 800 registered!!). Hence, he must resignlah because he prove his method are not working. Futhermore, he is not good in his politic (he should ampu current PM more lah, dun always hang on to previous PM, should learn more from some guy name His****din lah, grooming his way to becaome future PM)
most important is not who become CEO of PROTON, but what is the future National Car Policies/Plan to PROTON…. or PERODUA also…
GOVERNMENT is the main role in this… not others… let's pray for them…
Hai again,
I support TUN's statement on TV3 news at 8.00pm just now. I guest his elaboration more or less similar to my comments earlier. Well up to you all to judge. To those AP's protectors and those who have intention to monopoly PROTON, think about the Malaysian people not just you pocket ok…We know what is happening and no need such swearing to gain some confidance on our statement. Be more resionale in putting their statement rather than making them like a fool to the world.
Chao
Tun M is the father of APs. Reality bites.
i want to add more since this guy is nestle ceo
i think there will a alterletive fuel supply…….. for proton….
do you want to know…..
it's meelo…. hua………… ha….. ha… ha….
why?
do you remenber milo motto?
ha ha ha ha ha …..
this badrul guy, one of 4 exco..quite good looking, ain't it? wonder if he is as good as his looks…
TM was good. For charting the direction of Proton, raising its profile in the international arena. That's great. But it stops there.
Changes are taking place too fast. CKD's are gaining a headway in the market because of some loopholes in the AP process etc (no debate on this, please). Proton has not really taken up the challenge of going head to head in confronting the competition. Proton is just utilising government intervention to stave off the competition. Proton, after all, is the national car project … but political patronage is part of the game …Tun Mahatir's feelings are hurt BUT that won't restore Protons image at all as a provider of substandard cars locally. Proton is pampered!
We need a radical leader, one who is given the free hand to run Proton like a business. I don't believe TM can take Proton further.