Proton cars are sold by both Proton Edar and EON. The latter, once upon a time synonymous with Proton, has been a “master-dealer” for the national car company since 2009. EON is a subsidiary of DRB-Hicom, Proton’s new owner, so the merging of Proton Edar and EON is not a big surprise.
Yesterday, DRB-Hicom announced to Bursa Malaysia the completion of the “internal reorganisation exercise” as part of a strategy to streamline and align its Proton business operations. The cash involved totals RM400,800,000.
The internal reorganisation involved the sale, transfer and assignment of the rights, title and interest in all the assets, liabilities and employees in the Proton business to Proton Edar by EON. It also included Proton Edar’s acquisition of 100% equity interest in EON Properties Sdn Bhd and Automotive Conversion Engineering Sdn Bhd, wholly owned subsidiaries of EON. In addition, Proton Marketing Sdn Bhd will take up 40% interest in Proton Parts Centre Sdn Bhd from EON.
“Besides being one of the Group’s strategy to achieve greater operational efficiency, establish cost savings and enhance the Group’s future earnings, the Internal Reorganisation will also ensure the seamless implementation of strategic measures to achieve performance excellence in distribution, logistics and after sales service,” said Datuk Seri Mohd Khamil Jamil, Group MD of DRB-Hicom.
“The Group will also be able to leverage on specialised expertise with the consolidation of the workforce, allowing the Group to augment its service offerings for the automotive industry. This reorganisation also means that we are delivering our promises of improvements in Proton,” he added.
We recently talked to Datuk Seri Mohd Khamil, where he shared with us DRB’s plans for Proton – click here to read. Earlier this week, it was announced that Proton has entered into a collaboration agreement with Honda – to revisit that one, click here.
AD: Drive the Proton model of your dreams. Submit your details and Proton PJ will get in touch with you.
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AI-generated Summary ✨
Comments generally express concerns about employees' severance, vehicle quality, and after-sales service following the merger of EON with Proton Edar. Some see the move as an effort to improve operational efficiency and logistics, while others criticize the company's marketing, quality control, and past performance. There is scepticism about guaranteed improvements for consumers, with some remarking on Proton's reputation and comparing it unfavorably to competitors like Perodua and Korean brands. Overall, sentiments are mixed, with some optimism about future restructuring benefits.