Proton recovery should be on track with RM1.5b loan

Proton_Perdana-10

Proton is expected to have reduced its debts and started its recovery efforts with the RM1.5 billion soft loan approved by the government last month, The Sun reports.

International Trade and Industry Minister Datuk Mustapa Mohamed said the soft loan was approved to further strengthen Proton’s position in the automotive industry, both in the country and internationally.

“The main objective of the RM1.5 billion soft loan was to enable Proton to make payments to all its vendors, which supply component parts. This will give Proton the opportunity to reduce its debts level and focus on efforts of company recovery and development,” he said in a parliamentary written reply to Dungun MP Wan Hassan Mohd Ramli, adding that the government took into consideration important aspects like employment, business ecosystem as well as research and development.

“We are also taking into consideration the interest of its some 60,000 workers and vendors. This is why we’ve decided to grant them the soft loan. We hope Proton will do better as it is important for 60,000 people working under the company,” the MITI minister said in April.

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When the loan was approved on April 8, Mustapa said that the government has set several conditions for Proton to meet, including the company having to “convince the government” of its new business model. Proton will also have to provide a strategic plan to expand its domestic and international markets, and a special task force led by Pemandu CEO Datuk Seri Idris Jala will overlook Proton’s transformation plan.

Proton is confident that its fortunes can be reversed. “The announcement by the government will catalyse Proton’s turnaround plan, which includes the rolling out of three new models this year starting with the Perdana. With the infusion of new members of management, the company is confident to turn around,” new Proton CEO Datuk Ahmad Fuaad Kenali said after the loan announcement.

“Proton is also constantly engaging its strategic partners to explore collaborative opportunities to improve its products offerings and time to market. I believe the assistance by the government will reinforce the confidence of our partners in Proton,” Fuaad said. “We welcome the setting up of the task force and look forward to working closely with them to chart sustainable growth for Proton,” he added.

Proton is expected to roll out the new Perdana, new Persona and new Saga this year. A recent report by The Edge says that Renault and Groupe PSA (previously known as PSA Peugeot Citroen) are in talks with the national carmaker over a possible strategic partnership. Proton currently has a partnership with Suzuki and is expected to launch its version of the Ertiga MPV this year as well. Busy year ahead, that’s for sure.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Carbon on May 24, 2016 at 11:55 am

    “reduced its debts and started its recovery efforts with the RM1.5 billion soft loan”.

    What cow dung is this? How can you reduce debts when u take a new loan?
    Melangsaikan hutang dengan mengambil pinjaman baru.

    Ha ha ha ha ha….

    Like or Dislike: Thumb up 49 Thumb down 4
    • hahaha on May 24, 2016 at 2:59 pm

      let me explain how this works….
      now in debt (no money)…
      borrow money…

      then got money already lor….

      at least thats how people in the company thinks anyway.

      Like or Dislike: Thumb up 22 Thumb down 3
      • skyjuice on May 24, 2016 at 4:28 pm

        Where did you pick up this? From sky?

        Like or Dislike: Thumb up 7 Thumb down 1
        • Same L00 on May 24, 2016 at 6:07 pm

          On track or not, don’t believe these Sendiri Cakap Sendiri Syok comments. Proton is fine only when they stop begging money from government.

          Like or Dislike: Thumb up 3 Thumb down 1
  • Fateh on May 24, 2016 at 12:03 pm

    biggest BS in history. what recovery??????

    Like or Dislike: Thumb up 23 Thumb down 6
  • abd.hanawee on May 24, 2016 at 12:05 pm

    Sudah dapat tongkat now wanna berlagak pulak.!!
    Why the change of heart ?
    Before this begging , tell sob story and agree to all the conditions set out .
    If this is the way P1 is heading then this 1.5 b can be considered as debt unrecoverable.
    Bercukurlah Proton !!!

    Like or Dislike: Thumb up 33 Thumb down 4
  • cergas on May 24, 2016 at 12:10 pm

    Recovery pebenda kalo LEMBAP camni.. baru nak tukar bumper n blkg Honda Accord dah makan tahun.. bkn suruh design kereta baru.. kedai apek tua tepi jalan pun blh modified n make up kereta cepat dari ko Protong.. PROTON LEMBAP

    Like or Dislike: Thumb up 46 Thumb down 19
    • applegreen on May 24, 2016 at 1:21 pm

      Banyak sangat kepala bro. Bos A suruh buat macam ni. Bos B suruh buat macam tu. Bos C kata begini pula, last-last kita dapat saksikan sendiri proton tiada hala tuju jelas dalam konsep kenderaan mereka

      Like or Dislike: Thumb up 14 Thumb down 3
    • be smart on May 24, 2016 at 1:58 pm

      Ye ke semudah ABC bro? Ko keje dalam supply chain automotive ke tak? Ko tau proses development macam mana ke tak? Tukar bumper je ke bang? Barang lain xyah tukar? Vendor yang supply ni semua tak yah test barang2 dorang? Xyah audit plant utk sesuatu project sebelum kick off? Ko ingat ni kedai Ah Beng ke nak buat keje semalaman? Line tak payah setup semua ke bang? Ko boleh jawab ke tak semua yang aku tanya tu agak2 ko bro?

      Like or Dislike: Thumb up 13 Thumb down 31
    • rosmah on May 24, 2016 at 2:11 pm

      Tunggu slot masa PM utk launch kot yang jadi lambat ni..sabar ya sayang…

      Like or Dislike: Thumb up 7 Thumb down 3
    • Clearly you think it is as easy as those bawah pokok workshop mods, sigh. Grow up please.

      Like or Dislike: Thumb up 7 Thumb down 7
    • tesla on May 24, 2016 at 2:27 pm

      Wah, tukar bumper je rupanya, lol

      (said primary school student)

      Like or Dislike: Thumb up 14 Thumb down 0
  • Tak happy, pukul Najix lah! on May 24, 2016 at 12:13 pm

    Why waste the money to save?Should throw them to Bankrupcy and save multi Billion each year. We dun need proton anymore? Our nation has pile up million of used car can be resell and reuse, why need save Proton to produce junk product next? Yes, Proton can create job here, but it also burden our country, why let cost burden company slow down our growth? Think about it.

    Like or Dislike: Thumb up 42 Thumb down 8
    • hailthepurist on May 24, 2016 at 2:02 pm

      better not save protong, more wiser to invest in P2..

      Like or Dislike: Thumb up 14 Thumb down 3
    • Albert on May 24, 2016 at 2:40 pm

      Tak Happy, u r very right.
      How can u bailout a private auto company using public funds?
      Tan Chong made losses last year,I think they deserve some ” grants” too.
      In the end,Naza,having retrenched 300 staff should also qualify for assistance.They also got suppliers banging on their tables.
      This year,Proton’s aales will only hit 75,000 units.It will be another year of losses.Next year how? Ask for another 1.5 B?
      There will be no end to this BAILOUT MENTALITY.
      DRB is making record profits from the Honda sales.
      They cant collapse,and should not ask for a sen!
      Tomorrow,the twice bailout bank collapse,and r u going to do a bailout again?

      Like or Dislike: Thumb up 11 Thumb down 3
  • Operation Manager on May 24, 2016 at 12:15 pm

    Exactly, rm1.5b good to cover up to 2015 loss. Next year to request another 1.5b for FY’16 loss, & continue so…

    Like or Dislike: Thumb up 25 Thumb down 4
    • MeToo on May 24, 2016 at 12:50 pm

      Why is the govt using the Tax Payer’s money to support a PRIVATE company?

      Like or Dislike: Thumb up 14 Thumb down 3
  • Borrow to pay debt???

    Like or Dislike: Thumb up 23 Thumb down 4
  • Government should publish these “convince the government new business model” to the public because the RM1.5B is the people’s money. Who can forget what happened with Perwaja Steel. History is repeating itself…

    Like or Dislike: Thumb up 24 Thumb down 5
    • basher on May 24, 2016 at 2:26 pm

      Yeah and then you will bash not every words but single letter of it

      Like or Dislike: Thumb up 3 Thumb down 7
  • RedPlanet on May 24, 2016 at 12:29 pm

    Launch a new model suck in 1.5B in 2016. Launch another new models in 2018 suck in another 1.5B…no no no, it will be 6 Billion Ringgit. LOL. Why don’t we use that money to upgrade our gov hospitals, schools, University, hire more oversea lectures to teach our students on how to be competitive and contribute to our county…don’t that sound even better.

    Like or Dislike: Thumb up 28 Thumb down 5
  • YeapyEvo on May 24, 2016 at 12:32 pm

    Interest of 60000 people vs 30M Malaysians who suffer high car price for 30 years?

    How to turn around with 3 new models which can’t sell in overseas?

    D segment car has little demand in Europe, even Honda stopped bringing in Accord to UK

    Like or Dislike: Thumb up 25 Thumb down 3
    • It is not yet launched, you say it cannot sell?

      Like or Dislike: Thumb up 2 Thumb down 8
    • Too late, the prices are similar througout the SEA region, and yes, they even didn’t have to protek p1

      Like or Dislike: Thumb up 0 Thumb down 1
  • Seriously…..repeating the same actions again and again, expecting different results….? I guess the ‘People in Power’ can go on convincing themselves of their hubris, but for the rest of us Taxpayers footing the bill, as well as the numerous historical bills, thanks to Proton’s repeated follies, it is foregone conclusion that it is another case of ‘Bad-Debt’ write-off. Bottom line, they should just do away with the Charades and ‘half-baked business plans’; and stick to addressing the bread and butter issues, ‘Cut the Fat’ from the Organisation, Stem the bleeding by disposing frivolous, non-viable business entities, ‘Sweat their existing assets’ and get professionals to run the business, not hand-picked ‘apple polishers’ who know next to nothing about running a successful manufacturing concern. In short , ‘People in Power’ do know the real answers to Proton’s problems, But do they have the Fortitude to see it through? Only Time will Tell…..

    Like or Dislike: Thumb up 22 Thumb down 3
    • john is otak batu on May 24, 2016 at 3:11 pm

      brader, time already told. 30 years of result till today that majority rakyat have rejected/complained thier bad product.
      All new tease/dream of TGDi still a myth. While their “shoe polisher” fans=john/donkey/kancil hybrid boasting hi-HP engine even though nowhere to be seen on sale at any market… hopeless

      Like or Dislike: Thumb up 6 Thumb down 4
      • samtowtruck on May 24, 2016 at 4:34 pm

        You must be VW fanboy claiming it is much more reliable than proton. LOL

        Like or Dislike: Thumb up 4 Thumb down 6
  • jibby martha focker on May 24, 2016 at 12:55 pm

    ..errrr apanama.. org m’sia mudah lupa..

    Like or Dislike: Thumb up 2 Thumb down 3
  • nabill (Member) on May 24, 2016 at 12:59 pm

    It might help u repay vendors, and u say ‘we are back on track’.. Forgetting u actually have to repay that 1.5 billion plus god know howmuch the interest on that.. Flawed business model, incompetent people all around, and management level u see no one with any auto experience on their side… Sad part is we know the brand have potential, bt its pointless wen society’s dumbest are sitting on top…

    Like or Dislike: Thumb up 11 Thumb down 3
  • Only one word to describe on May 24, 2016 at 1:07 pm

    One word: Shameless

    Like or Dislike: Thumb up 14 Thumb down 3
  • john is otak batu on May 24, 2016 at 1:12 pm

    Just another “FRESH RECOVERY”… NOT mentioned what will happen to coming new launch sales result by end of this year.. by year end will headline news “HAVE NOT RECOVER FROM LOSSES, NEED BAIL OUT” again

    Like or Dislike: Thumb up 4 Thumb down 3
  • Lulla on May 24, 2016 at 1:35 pm

    Ok in order to proof to rakyat show us the results then only v believe.if not anything in air sory gone r the days when rakyat just believe on statements like that.bez already made many many statements like this in past but still taking our tax payers money as loan.

    Like or Dislike: Thumb up 5 Thumb down 3
  • Proton was a mistake from day one.. Look at the drain of investment to Thailand.. Also it was run under the wrong policy of ‘PROTECTIONISM,”..as also applied to many policies in this country.. Competitiveness erodes with Protectionism practices

    Like or Dislike: Thumb up 6 Thumb down 4
  • Black Dog on May 24, 2016 at 1:49 pm

    The billionaire boss gets government aid paid by 30 million Malaysians. Bodohnya!

    Like or Dislike: Thumb up 10 Thumb down 2
  • The Saint on May 24, 2016 at 2:52 pm

    I really cannot see any light at the end of this very dark tunnel. sigh……..

    Like or Dislike: Thumb up 10 Thumb down 2
  • recovery should consider if rakyat willing to buy Potong up coming or not…sigh endless pain still carry on to the whole population

    Like or Dislike: Thumb up 10 Thumb down 3
  • Vincent on May 24, 2016 at 3:03 pm

    We hear the same repeating statement every 3 to 5 years.
    “Proton recovery should be on track”
    Every time Proton need tongkat, the same statement will be recycled. We always read “Should Be” and that also mean, by right it should, but always by left.. it failed!

    Like or Dislike: Thumb up 15 Thumb down 3
  • Helmi Muar on May 24, 2016 at 4:11 pm

    On track to pay back the 1.5 b loan ?
    No news on restructuring progress , no news of foreign partner , no news of major shake up and they have the cheek to say that “semua ok ?”
    The chopper has also been very quiet probably unable to do much cos govt directive insisting on retaining the 60k overpaid & overbloated work force.
    Look at today’s DRB Hicom share price – 90 sen.
    Its a penny stock eventhough NTA is 3.80
    Operating on borrowed money and over leveraged.. . Bercukurlah!! Sigh !!

    Like or Dislike: Thumb up 20 Thumb down 3
  • azrai on May 24, 2016 at 4:48 pm

    Doing the same thing but still hoping for better result?

    Like or Dislike: Thumb up 13 Thumb down 2
    • suhardy on May 24, 2016 at 5:15 pm

      Betul2x Onzz !!
      Smart guys get this!!
      Game changer !!
      Its in the drive !!
      Hehe !!
      Lain kali lah !!!

      Like or Dislike: Thumb up 8 Thumb down 3
  • ong chee boon vw con-man on May 24, 2016 at 5:30 pm

    Big statement insulting majority m’sia tax payer

    Like or Dislike: Thumb up 7 Thumb down 2
  • Proton Recovery S

    Like or Dislike: Thumb up 2 Thumb down 1
  • Tong Sampah on May 24, 2016 at 10:47 pm

    indirectly telling you the money ends up in the cronies supplier hand!!

    so all proton BS is continue BS as their car can never sell with existing management..

    Like or Dislike: Thumb up 3 Thumb down 1
  • Raja Mongkol II on May 26, 2016 at 7:18 pm

    Karma will never forget Proton….for all the hardship caused to Malaysian.

    100 years curse befalls on those working with Proton….

    Like or Dislike: Thumb up 0 Thumb down 0
 

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