Proton has responded to allegations/speculation that Proton’s disposal of its previously owned 57.75% shareholding in MV Agusta for a sum of 1 Euro was not carefully considered with an official statement today, following an announcement last week that Harley-Davidson was going to buy MV Agusta for 355 million ringgit.
In the statement Proton said that due to the conditions and limited options available during that time it was in the best interest of the company to let MV Agusta go based on operational, commercial and financial consideration as at that point of time there was a real danger of MV Agusta falling into bankruptcy.
The international investment bank appointed to advise Proton on its shareholding in MV Agusta had informed Proton that continuing to try to develop MV Agusta into a company with positive cashflow would require significant cash backing from Proton over a long period of time, which would result in the exposure of Proton to significant operational, financial and reputational risks.
Proton also added that from an operations perspective it was advised that there was no way to integrate MV Agusta operations into Proton’s big picture.
Related Posts:
Harley-Davidson buys MV Agusta
Proton disposes of MV Agusta for 1 Euro
Tengku Mahaleel and Tun Dr Mahathir question MV Agusta sale
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first, i want to know which international investment bank….
blame that you pick the wrong int’l investment bank….
they cheated proton….
“Proton also added that from an operations perspective it was advised that there was no way to integrate MV Agusta operations into Proton’s big picture.”
Then why buy it in the first place? Do they need to dip their feet into the water only to know that it is dirty?
Just want to say this… If MV Agusta have the possibility of falling into bankruptcy, why didn’t it? Instead it is a triving proposition today. Please Proton, do not try to justify your action. What is done, is done. Face up to it! Typical of malaysian, always need to justify or defend their decision. If you can make such drastic decision (for reasons best known to them), then by all means, face the music or criticism that comes with it!
First of all Proton shouldnt buy MV, until today they unable to produce world class car, go for motorbike for wat ?? Kereta pun tak boleh buat dgn betul , lagi motor pulak, learn how to make kapchai bike first la !!
Really waste taxpayers money. wat a bloody contigency plan they has !!
ego ler….who’s going to admit they were doing the wrong move? very typical.
Why purhased at the first place? Proton can’t even manufacture a quality car, yet they put out their head in MV Agusta that already full of debt. Firstly, the previous management must answer for it. What did they do at MV Agusta after they purchased it before the new management took over? As for the new management, they knew MV Agusta was just like cancerous cell. So they chopped it off immediately. Then the question rise again. How many buyers do they approached before the transactions took place? Had they ever approached BMW and Harley-Davidson before?
Malaysia Boleh, Proton pun Boleh.
idiots!
Guys,
Building motorbike doesn’t involve making power windows ma. So, Proton would think, by making motorbike, ppl will not complain this subject anymore.
Pandai right??
proton is a bloody disgrace, watse malaysian people money
shame on it
Of course defendla.. Like how shaberry cheek defended the current fuel situation in Malaysia.
Whatever it is, it was a bad deal for Proton.
Should have kept MV Agusta and sold Proton. =)
Hikaru said,
July 16, 2008 @ 6:02 pm
“Proton also added that from an operations perspective it was advised that there was no way to integrate MV Agusta operations into Proton’s big picture.”
Then why buy it in the first place? Do they need to dip their feet into the water only to know that it is dirty?
WOO! good point!
The person(s) that made the decision may be very clever, he (they) might not be cheated, money might have gone into his/their personal kocek. No project where got makan!
Which stupid bank advised that? You have to remember that proton is only surviving on Rakyat Tax money, not because they excel by themselves. As long as there is this stupid tax structure where proton is cheaper than the rest of its competitors, and people are forced to buy proton cars because of cost, how can you make people proud of proton…
If gov really care, give open market fuel, give open market car price, not go punish the rakyat even more
stupid will the decease forever no medicine have help the improvement, the good example is “PROTON”, congratulation.
Stupid proton, no brain proton, masih pakai lampin, hui.
Its like we lost a golden egg but actually we dont know how to cook or skin it anyway so we sold it lah, what to do, otherwise heavy to carry in pocket lah!
With all the official/banking type words like “based on operational, commercial and financial consideration” and “would require significant cash backing from Proton over a long period of time, which would result in the exposure of Proton to significant operational, financial and reputational risks” … it begs the question:
Why didn’t they think of all that and do some due diligence/planning BEFORE buying MV Agusta?? now HD has bought MV Agusta and Cagiva, and BMW has bought Husqvarna and the Malaysian taxpayer is left wondering a) Why did Proton buy it and b) Why did Proton sell it?
actually, have anyone ever seen a MV Agusta bike before, they’re the best looking sportsbike money can buy, cooler that any new Ducati, Suzuki GSX, or Honda CBRs, no wonder Harley paid good money for it
that’s also I see in the G’s dept… we may hv the best “hardware” but the “software” is full of bugs or out of services date!! hehe….
Alo kawan,
Itu MV Agusta is sucking proton’s money dry la kawan.. no sales, bleeding proton’s resources for operation (masa tu ada G2, waja, Savvy, Saga LMST), itu persona project mau tooling, BLM mau tooling money as well ma.. semua org mau kereta baru, mau airbag module, semua mau la tapi duit tamau bayar susahla mau bikin prod dev.. you tada duit, tapi pakai lambo, mau isi minyak pon tada duit apa you boleh buat? bank hutang sudah bnyak, monthly tada bayar, so kasi tarik la..ada org mau bayar lebih ka? org angkat kasi clear hutang bank saja ma..
However, the T-Car (10 thou car) idea to put motorcycle engine in a 3 seater car or sorts is plain utterly stupid. You nak buat proper car pon taktentu hala, yet nak buat benda yg tak tentu ROI.. itulah old mgmt, buat product without considering market sensitivity, ikut suka perut sports car, sports car sports car.. org nak van/mpv, small sedan with fuel efficient engine, proton driver bukan semua Lewis Hamilton, mostly uncle/1st owner.. org gila kereta dia beli honda, tak tgk dah yg lain.. B16B/H series/K series is the best in the world pada diorang nih.. apalah pnya planning.. Oh, back to the question why buy MVA in the first place? Lotus ok sbb dia kereta.. (but nak dpt IP share kena tunggu berpuluh tahun, yet technology transfer lebeh kurang saja, still kena engage other consultant jugak.. better stick dgn EDAG je patutnya..)
Geng, i keep laughing while reading what “scottloeb” said. But one changes really obvious we can all see after Proton bought Lotus it the badge “Lotus tune suspension”
Wah lau leh, Three words nia, this show what proton learn from ppl’s technology. geng!
mokkf82…lotus tech is not in its tune suspension…its in the driving dynamics..thats patented and very much sought after….two different set of meaning bro…
abtm…yes nice looking bike but most buy once and keep sampai mampus…no recurrent sales…so dats why bankrupt…owner mampus, basikal hidup lagi…akin to the phrase..org mati hidup lari…
How proton (persona/gen2/waja) to fight with toyota (vios J type)?
When you manage any business simply on basis “syok sendiri”, then it is doomed from the beginning. Tun Mahathir may have the vision to make use MV Agusta technology to help Proton in developing small capacity engine (like Honda and Suzuki) but putting Tengku Mahalel which develop cars just purely on sports this, sports that…is NONSENSE! Making cars for the mass market needs is the simplest thing to do…just give what the market wants! Sigh! Sad to see how these “genius” run a company.