So far, Proton parent company DRB-Hicom has showed no interest in relinquishing its majority stake in the national carmaker, but even if it did, the government has claimed that it has no issue with it doing so as a means to pursue a foreign strategic partner (FSP), according to Bernama.
The national news agency quoted second finance minister Datuk Seri Johari Abdul Ghani, who said it would rather have a Malaysian carmaker become a well-known international brand, instead of simply selling cars to the domestic market with a volume of between 200,000 to 300,000 units, which he said is unsustainable. “The key is to bring many investors to Malaysia and create employment,” he said.
Johari added that as Proton was no longer state owned – and the government had no intention in buying back a stake – there was no harm in it proceeding with its plan. He also said that it was privately owned, and as a result, a government intervention in the company’s dealings would be wrong.
On the flip side, Johari said that the government could still have its own opinions regarding the negotiations, adding that Proton needs a foreign partner to provide it with new technologies and introduce better cars that consumers from other countries would buy.
“If Proton is to stand alone, it cannot flourish overseas,” he said. “We are making cars only for Malaysia and this is not sustainable with a population of only about 31 million. We also have Perodua and other car assembly brands. I think it is all about volume, as well as quality and technology, alongside a good design. These are all the ingredients needed for a better car which people would buy.”
Johari also said that while Proton is a good brand, it needed to have more volume by selling cars overseas and introducing new models. He also said that one or two “good” local partners have shown interest in partnering with Proton by buying a stake lower than 50%. Although the minister declined to elaborate further, he advised those looking for a partnership to express their interest before February 15.
Additionally, Johari said that the government is concerned with Proton which he said has created thousands of jobs, although it has no interest of being involved in private sector dealings. “There is a need to ensure this job security and that vendors are protected,” he said. “Going forward, the government should allow the private sector to do business, but won’t itself be involved in it.”
Earlier in the week, DRB-Hicom issued a statement regarding the partnership negotiations, saying that it aims to complete the selection of an FSP by the first half of the year. With the interested parties – reported to be Geely and the PSA Group – having already completed their due diligence on Proton, it now awaits the submission of bids from the parties, after which an evaluation of the bids will commence.
The conglomerate also stated that Proton can be a more successful carmaker with a partner, gaining access to new platforms, powertrains and technologies that will allow it to revitalise itself. Group managing director Datuk Seri Syed Faisal Albar said that DRB-Hicom will evaluate three key criteria – which are the strategic, operational and cultural fit – in finding the right FSP for the Malaysian carmaker.
Syed Faisal added that DRB-Hicom will insist that the Proton badge and its technology will be expanded into ASEAN markets first and global arena subsequently, and will also assess the intention of the potential partner in utilising the current “home-grown” vendor network during its evaluation.
He also said that the company is confident the venture will be beneficial to all parties, with the FSP gaining access to Proton models, the under-utilised Tanjung Malim plant and the research and development expertise of Proton and Lotus.
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The design of the new saga is really good indeed. I applaud proton for the new saga. It’s desirable. But I just wish the perdana wasn’t too big and the rear end could have been designed better. Same goes for the Preve. The headlights look too flat and small. The waja was a good car. Proton designed some nice cars such as the waja, the latest saga and the older persona. The older persona looks very good for a sedan, it has nice proportions.
The Saga and Persona are both tastefully done tbh. However, the interior on the new Saga looks and feels more outdated than the old version it replaces. Also, the tiny and thin tire (cost cutting measure) is also a deal breaker as it messes up with the proportion of the vehicle. Hoping this would be rectified with their next-generation offerings. Seriously hope that they use the class leading VW Golf as a benchmark and throw in quality, soft touch plastic. I’m asking a bit too much but, for P1 to sell well it needs to at least be on par its peers, if not better.
Tiny & thin tire because of 1.3 engine. Want a rim & tyre, need bigger engine.. Bigger engine, more cost, more cost, price will increase, price increase, no one buy! No one buy, apply soft loan from gov, gove give the soft loan, people sad, better close shop la Proton!
Apa kejadah compare Saga dengan Golf? Saga is A segment Golf is C
85 peratus kenderaan di Korea Selatan adalah kenderaan buatan tempatan. Kesetiaan rakyat Korea Selatan terhadap jenama kenderaan buatan tempatan begitu kuat.
1. korea selatan juga ada kawalan kemasukan kereta luar.
2. harga kereta juga jauh lebih murah berbanding di malaysia (sorento di malaysia 160k, di korea selatan 110k (ringgit)) dan jumlah rakyat
3. lihat features antara kereta kia dan hyundai dengan proton, beza dari segi design dan teknologi lebih kurang 7-8 tahun ke hadapan.
4. rakyat korea jauh lebih ramai dari malaysia, malaysia menjual 600k kereta baru setiap thn pada 30 juta rakyat bersamaan 0.02%. jika peratusan yg sama dibuat utk rakyat korea seramai 50 juta orang, bermakna 1 juta kereta baru terjual setiap thn.
The premium spec saga is using 15 inch wheels. Why the fuss. U want more, u pay more lab.
First thing Geely must do on Proton: Sack the designer! Yes, sack the designer!!!
OMG…really GOOD? hardly seen the new Saga on the road…
Can see some new Saga on the road liao, but lesser than the narrow and high bontot Bezza.
We can see the finishing improvement in Saga and Persona. We believe that the employee of Proton has changed and wanted to reinstall the branding reputation among Malaysian.
As for Proton Management, they making a very wrong decision for introduction of Perdana and Ertiga. Proton should already know that they stand zero chance in this segment. 99% of public will take Civic over Perdana and Alza over Ertiga. Creating new money in making new mould only mean to distribute the R&D cost!!!
Najib administration has the rational decision over Proton’s foreign partner. This is the wrong doing of Dr Tun M 30 years ago!
In that sense, Proton should just become a holding company. Transfer all the assets to Lotus and every car they made now become a Lotus. That should an internationally recognized brand. Will that change how people think about the car?
Globally people have the same opinion about Lotus, the way malaysian have about Proton!
Proton needs to rethink its core strategy… no longer can a small car manufacturer think like the big wigs of Toyota n Honda… it needs a niche approach… it should devote its technology development towards eco-sustainable efficiency…
Take a look at it this way… in a world of Merc, BMW n Audis… a certain market segment would forgo all these brands for a Tesla…
Proton could adopt a similar strategy… making affordable small eco cars for city users… because in the near future… urban driving needs to be small, efficient n eco conscious… even more so when buying a car gets more n more expensive by the year.
The first thing China will do is to slash the overbloated 12,000 workforce Proton has to 6000. This is because China believes in lean and trim workforce.
Unlike Malaysia where we believe in 10 man to 1 person’s work policy. In China, 1 person do 10 man work policy.
Don’t mess with China. They don’t believe in giving free jobs like how Proton has been doing 30 yrs
You think China won’t get angry when msian gomen say wajib to keep all 12,000 workers at whatever cost?
Compared to selling government (i.e. the people’s) land to foreign powers, this sale of a stake in a company is “nothing”.
Too bad. DRB is supposed to save proton. But they are too dumb and broke to do that. The G on the other hand have more faith to the foreigner rather than our own people, proving that their mindset are yet to be independent from british rule. Proton was on the right path during DSZ, too bad some monkeys have spoiled it.
Beggars can’t be choosers. Just take the money and shut up. Any attempts at justification will make the people more sick.
Proton is selling 51% to Geely. This means, Geely can decide what they want to do. If they shut the factory down or keep it running, it is up to them.
If they sack all the workers and bring in Chinese nationals, it is up to them
If they decide not to manufacture cars but decide to sell goreng pisang in the plant, it is up to them.
DRB and Proton has no say at all cause they only own 49% of the plant.
In company law, if you own majority stake, you can do whatever you want.
If they bela lembu also in the plant, Proton cannot say anything!
Thats a gross oversimplication of a speculation. Buy into a company n let costly machines be unused is insane. Sack local workers to bring in Chinese nationals will not be entertained by Imigration Dept. No one knows what the agreement is yet… they may unlock assets apart. To ‘bela’ lembu in an industrial plant is just plain ridiculous. Stop your fear mongering u chicken little coz the sky is not falling.
” – In company law, if you own majority stake, you can do whatever you want. – ”
Really ??
Please correct me if I’m wrong – in Company Law, 51% majority stake buys you an Ordinary Resolution. On the other hand, a 75% majority stake, provides you a Special Resolution.
” – If they shut the factory down or keep it running, it is up to them. – ”
Really ??
That may require you to pass a Special Resolution !
Also, there’s Minority Interests/Rights to consider……..
Percentage is just percentage.
What matters more is “control”. That will be specified in agreement on who gets the power of “control” of the company.
Although generally 51% is sufficient to imply “control” belongs to said shareholder, in sometimes is not.
As long as one has “control”, it’ll have power to hire, fire anyone they want, do whatever they want to the company.
Screw minority shareholder. Tak suka, keluar.
Then again, International Accounting Standards consider 20% stake or more, an Associate Company and can exert significant influence on company policies – and needs to be categorically identified and declared in its annual report.
Frequently, with a lackadaisical “Other” shareholders, they may also carry out exactly what you described.
True, percentage is just percentage !
But, it’s not exactly a “No Legal Recourse” situation. DRB-Hicom can if they want, mount a legal challenge.
Just saying-lar……….
There are terms and conditions on the sales and purchase agreement lah.
I hope the DRB Guys are not too overjoyed because when China really comes and sees how Proton is being run, they are going to ask some serious questions. Questions such as
1) Company losing RM4 mil per day also but why got overbloated 12,000 staff?
2) Company losing RM4 mil per day also but why directors and management got very high pay packets and so many privileges like driver and limos?
3) Company losing RM4 mil per day also, workers in plant suka hati sometimes come sometimes don’t come. Attendance is a super big problem for Proton
4) Company losing RM4 mil per day also but crony vendors are still the same supplying Proton with super low quality parts with super high prices for the past 30 yrs
.
China will question all this. How is DRB going to answer?
In China, even famous billionaire caught for corruption also now getting executed. They don’t tolerate nonsense and they mean business.
China will not tolerate lapk and rilaks attitude. Now Proton plant, workers there running at minimum for years, they are used to easy goyang kaki life.
It is called free market. If you are good, you will survive. If not then too bad. No need tongkat and special privileges. Let it go….let it go
Can Proton keep up to Geely’s hard work attitude?
Geely started in 1998. 13 years later than Proton. Adn yet Geely has made so much of72 sales and money, they can even buy Volvo up just like that. This shows how fast moving and efficient Geely is.
Proton started in 1985, yet, they hardly can sell even 72,000 cars. This also, despite the bulk of the 72,000 cars being bought up by Government agencies and Ministries as a “sedekah” to help Proton out.
Compare BOTH companies and BOTH work attitude. One is so fast paced, so cekap, so hard-working and mean business.
The other is still getting up from sleep.
You think this marriage will last?
U asked why? Heres why:
MY pipu = 30 million
China pipu = 1.4 BILLION
P1 market share = 17%
Geely market share = 2.7%
Now see ur comparison. Its pitiful.
Geely uses cheap labour, availability of cheap raw material locally, sell cheap to large local market.
Wait till you sit in one of the Geely car, then only you know aware that you need to rephrase the statement of “Cheap” here and there!
Bigger market bigger profit
Trying to justify a failure.
After 30years…
……..even more but still cannot come up with zero defect car, where is QC ?
Which manufacturer has zero defect cars? Do let me know
If p1 got small defect kecoh satu dunia,
If jepunis got defect, even killed pipu silence @ 0dB
Topkek
Finally sold…
Is the RM 1.5b soft loan to Proton going to be repaid or is it going to be converted into equity? If it is the latter then the Gomen will again become a shareholder in Proton, yes?
I won’t buy Proton if they choose Geely. Last time my friend bought Geely cars…. end up in hospital 6 days ago because the brake were ‘off’. So i hope Proton choose PSA Group or Renault SA.
If that’s the case, you also should not buy volvo cars which happened to be owned by Geely group as well. Stupid!
Yea, but Geely is not involved with Volvo’s development. Which will not be the case for Proton, if they were to be chosen. Proton is looking for a technology partner to further push its know-how in the auto industry. Geely is a not known to be a technology innovator. PSA and Renault on the other hand is a lot better. Personally, I’d choose Renault because of its partnership with Nissan. This would allow Proton to benefit from the 2 companies’ CMF platform and factories. PSA is not that bad, but they are lacking behind in autonomous cars and EV which, beyond doubt is the future of cars in the coming 5 years.
All this years,i wondering what have Proton R&D team do after invest so much money?If all this years past by Proton still dont know why “FAILED”,there’s no meaning to find an partners for enrich Proton technology,marketing strategy n bla bla bla.From first day proton born till today,all i can see Proton still selling others brands model by changing d logo n minor design.Thats all i can see Proton development.
(My own view comment)
Earlier they said by 1st Qtr now by 1st half, later by year end.
Another point – “Syed Faisal added that DRB-Hicom will insist that the Proton badge” lol good luck.
The government should go peddle these Proton for barter trading with the other countries. Less rely on USD. The willing countries would also save up on the required foreign exchange. Just exchange with commodities etc
They don’t really need foreign partners. They need market and push marketing by gov. Macam Dr M dulu selalu buat. Kena rajin tidak boleh malas.
According to DRB, the FSP will benefit from
(1) access to Proton models,
(2) the under-utilised Tanjung Malim plant
(3) the research and development expertise of Proton and Lotus
It seems to me that #2 is the only one silver lining in FSP to acquire Proton. Let me explain the reasons:
(#1) Proton models are not competitive enough. They have progressed by leaps and bounds, but one step they took, the competitors (e.g. Koreans) had already moved 3-4 steps.
(#3) Good handling dynamics just wont make the cut anymore. Proton latest platforms are indeed heavy compared to their peers with less than remarkable interior space maximization when compared to Japs (etc Honda. Less weight & FC but maintain good safety & excellent interior space). Weird, considering Lotus who’s known for their magic touch in lightweight engineering.
About Geely, although they own Volvo, that doesn’t really translate into Swedish technology transfer to them. Proton had bitter memories with Youngman. A more technologically superior partner like PSA or Renault-Nissan is more of a worthy suitor. Only they can provide access to advanced modular platforms & future-proof engines, plus the advantage of stronger brand image in both developed & emerging markets.
Glad to see someone sensible and who actually knows about the automotive industry! Partnering with Renault-Nissan would not only give them access to their CMF platform, but also to share factories in different continents.
Agree..if look at synergy ill rather go for Renault or Suzuki due to (layman view ehh);
1. Renault Alliance (currently 4th largest vehicle manufacturer in world – 9.96 mil in 2016). Strong leadership by Carlos Ghosn.
i. Renault + Nissan + Mitsubishi
ii.Renault is strong in Europe / North Africa but lack presence in Asia. Strong in F1.
iii.Nissan is strong in Asia / US but lack penetration in others. Strong in Grand Tourismo.
iv.Mitsubishi is strong in SEA & Russia & Middle East. Strong in Rally & Electric vehicle.
v.Proton is strong to be develop for OIC countries. Its LOTUS is good for lightweight R&D and supercars.
2. Suzuki
i. Leader for car segment in India.
ii. Strong presence in Indonesia.
iii. Have varieties of vehicles from SUV range to motorcycles. (maybe Proton & Modenas can be teamed up to create synergy to capture larger market share especially in ASEAN to compete with Toyota owned Yamaha..Honda & other motorcycles brand.
Just my view.
Tq.
Proton needs to learn to lead rather than just following the market trend. For example: Proton does not need to create the Proton Iriz just because their management saw the Myvi was selling well. Why must follow the trend of another company when Proton itself can lead by introducing an affordable SUV to the market which is to replace the discontinued Kembara ? Iriz is not selling well mostly because people lost confidence in Proton and its utterly hopeless aftersales service. Learn a thing or two from Volkswagen on how they are trying to regain public confidence from their dieselgate fiasco. Proton is experienced in making sedan cars, so concentrate at that. New Saga is a good example. Exora MPV is also a good product but it is showing its age already.
How to lead when Proton is nothing?
Why Myvi is so successful? Because of P2?
In facts, if you google back those news and market movement .. a year before MYVI introduced, you will know why.
1) MYVI is rebadge of toyota passo and daihatsu boon.
2) Grey importer is selling toyota passo and daihatsu boon at around MYR80K.
3) MYVI successfully using the above factor, to make Malaysian believe that it is super value deal to get a toyota passo and daihatsu boon in P2 logo with MYR45K.
But Proton, they tried to get lancer.. end up, still have to tutup kedai!
So, when you are no body, you cannot lead!
Tolong jangan berangan – angan nak jadi global player… inikan domestic market pun kalah teruk… Proton sepatutnya menolong rakyat negara tercinta kita untuk memiliki kereta yang harganya murah, berpatutan dan mempunyai kualiti produk yang tinggi… Bukan selalu berangan – angan nak jadi global player tapi produk kualiti pun sentiasa menjadi isu sampai sekarang sejak 30 tahun lepas… Pikir pikir lah secara logik dan praktikal….
Hi Jonathan Lee. Regarding all this development, I wonder what’s being discussed by Suzuki’s top management.
I hope paultan.org can do an article on this.
Suzuki & proton collaboration was agreed when Tun M was still chairman of Proton. Hence Proton ertiga was born. Suzuki phased out their brand and presence in Malaysia. All their showroom were converted to Proton. In my opinion, that is a huge commitment from them in terms of the collaboration with proton.
However, as all are aware, obviously Tun M is not on the same page with the government. So, a good thing if proposed by a person not “ngam” with the gov, that good thing is not good anymore. Well…you all know the politics.
So, after this huge commitment from Suzuki, are they just going to supply one model to Proton, that’s all? Geely has no presence in Msia now. Lets say PSA Peugeot citroen is the winning bidder to buy proton, are they going to phased out Peugeot&citroen brand presence in Msia?
Has suzuki been played (kena main)? Is suzuki going to sue proton? Just wondering, because no article has been written on this. My apology if anything above is incorrect.
should peugoet PSA succeeded in in this plan, what they will do include:-
1. start to establish marketing programme for the entire ASEAN region and recognising what car can be best selling. perhaps peugoet 208. instead of selling 1,000 units in malaysia every year, the plant can assemble 20,000 units for the entire asean and enjoy the AFTA non tariff tax barrier. the 208 can be made at a cost of 20K with many localisation parts sourced from malaysia, indonesia and thailand and sold for about 60K. the cars they produce will be sold to Naza group then, who are the distributor for both brands in malaysia.
other than that, there are many other peug and citroen models they can choose to sell including MPV and commercial vans.
they may want to rebadge proton to sell in europe or middle east which will help increase proton sales from the lowly 70K units last year to something in the region of 150k perhaps.
HAHAHA… to many candidate for New Proton Geli2 here….
I mean CEO… hahahaha
Currently PROTON is the National Car company by definition, and privately owned by someone or few entity in Malaysia. I think this is up to them to whom they want to sale to.
Ironically Toyota and Produa is owned by Malaysian thru PNB and ASN/ASB via UMW share. But they are not pure national car even the local content is high.
leave proton alone to decide its course and you’ll see it soar tbh.
If Proton never take the 1.5B soft loan from government, we won’t care about Proton. Now, we are concern when our Rakyat money 1.5B can be return…