Proton Holdings Bhd may post a second quarter loss of RM700 million due to MV Agusta, it’s unprofitable motorcycle unit. It previously posted a first quarter loss of RM 12.4 million, and attributed those to increased allowance for bad debts.
An industry source mentioned the red ink from MV Agusta’s books has spread to Proton’s. Proton will likely have to make some hard decisions involving cutting losses, and dumping MV Agusta.
A report by the Malay Mail last week had already given us some hints on this loss cutting exercise.