Much have been said about Proton’s potential foreign strategic partners (FSP), even though the national carmaker has till now not named any party directly, and the proposals from its suitors are yet to come in. The latter will happen very soon though, if not already, as the deadline for proposals to be submitted to Proton is February 15, which is this Wednesday.
This was revealed by second finance minister Datuk Seri Johari Abdul Ghani to Bernama yesterday. “After the closing date, a decision will be made soon after vetting the proposals,” he told reporters, adding that besides companies from China, European ones have also shown keen interest in becoming Proton’s strategic partner. Reports have pinpointed China’s Geely and France’s Groupe PSA as interested parties.
The ball will be in Proton’s court after this Wednesday, and the government does not plan to be an active participant in the selection, as Proton is after all a privately-owned company. Johari said earlier that the government is fine with Proton parent company DRB-Hicom ceding a majority stake to a foreign carmaker. “Going forward, the government should allow the private sector to do business, but won’t itself be involved in it,” he said.
However, DRB-Hicom has maintained that it will continue to hold a significant stake in Proton after the FSP’s entry. “We have stated before that we will maintain a significant equity in Proton, and this has not changed. The FSP search is not about shirking our national responsibility but about enhancing Proton as a bona-fide carmaker, and eventually putting it, and Malaysia, on the global map,” DRB-Hicom group MD Datuk Seri Syed Faisal Albar said in a statement released last week.
He explained that DRB-Hicom will evaluate three key criteria – which are the strategic, operational and cultural fit – in finding the right FSP. A strategic fit will enable both parties to derive tangible benefits from the range of technology and products available, which will ensure that Proton can achieve economies of scale from its domestic operations.
An operational fit with the FSP ensures that both Proton and the partner will complement each other’s strengths, while a cultural fit will ensure a successful union. This “chemistry” between the two parties will be critical in pushing Proton forward while enhancing the FSP’s own operations vis-à-vis its short and long-term plans.
Another factor in the evaluation will be the intention of the potential partner in utilising the current “home-grown” vendor network. “This is a very significant element in our evaluation, as DRB-Hicom, which also owns subsidiaries serving Proton as vendors, will avoid having the home-grown network being diluted substantially,” Syed Faisal added.
With a close fit that matches the items listed, DRB-Hicom said it is confident the venture will be beneficial to all parties. It added that in evaluating a potential partner, DRB-Hicom will insist that the Proton badge and its technology will be expanded into ASEAN markets first and global arena subsequently.
The conglomerate has reiterated that it aims to complete the selection by the first half of this year, although it will strive to conclude the deal earlier.
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For the country’s sake, close down the company!
Perodua will be good fit.
Brader, don’t be like that. I was like u B4.
Let there be light for someone who need business like our poor local vendors besides non cronies.
Hope our local suppliers got a fair share if foreign take over.
China car built by Tanjong Malim people, rebadged and after sales by Proton? Hahaha good luck
Regarding the benefits,
Economies of Scale : Yes
Putting Proton on a Global Map : Not truly global. Could be just confined to ASEAN region. Remember, the FSP is the stronger of the two parties in this deal and they certainly have their own global ambition ..
China’s plan is very simple. Once they get their rights and base to market their Geely cars in Malaysia and Asia, they will shut Proton down.
That has always been how China does things. They buy their competitors up and then shut them down. Money is no object to them. They don’t mind to forgo some loss, so long as they are the MAIN player.
Proton better be careful. Don’t always fall for the carrot hanging to entice you. Pakai hotak sikit.
They don’t shut Volvo as history tells.
They don’t shut down Volvo because Volvo has its own legacy, history, technology and most of all the sentimental value attached. They patented a lot of safety innovations and gave some of it to its competitor. What does P1 got up its sleeve? Well the power to conduct day light robbery of tax payer’s fund. The entire image of P1 is basically constructed after years and years of mismanagement, foul practices, inefficent culture and so on. P1 has all the negative connotations attached to it, more like a Soviet built quality cheap substitute of what’s on offer on the market. We buy P1 because it’s relatively cheap, yields most bang for the buck. We forgo safety features, comfort, to an extent even reliability! We didn’t choose to buy it because it’s a desirable car company, it’s because we HAVE TO! Ever look at a Proton and say hmmm this car looks so sexy? Imagine that? With that in mind, we Malaysians really have no right to question whether or not the Chinese should take ownership over Proton. Both ways, we tax payers are always the losers. So do you prefer to have a quick death or a slow, hypoxic death? That’s the question. Hypoxia can always be treated by supplying oxygen to maintain blood oxygen level metaphorically speaking (the much needed Chinese injection). We’re just not in the position to ask where the money is coming from, given the state of affairs and all the bad rap we have on an international
level. Proton needs money to innovate and to rectify the wrong doings otherwise they close shops. I may have triggered a few people here, but with all due respect, this is the clear cut version of my interpretation of the entire situation.
But but but my preve drives better than my Jepunis Accord, how?
Seriously, who cares????? is there no other good automotive news in the world or Malaysia that PT prints these articles about P1? this also will end up like their JV with Honda.
Seriously, why bother reading PT if you want to question what PT put on their site? Don’t like the news, then skip the news. Read something else. No one force you to read this anyway.
And Mr Citizen of course knows what the PROTON and Honda JV entails. That’s why he wrote it will end up like the same JV.
Dear Johari Abdul Ghani, what happen if the Chinese/French do not want to use your “home-grown” vendor network ?!
If don’t want to use DRB-Hicom affiliated vendors then cannot get a share or Proton lor.
It will also mean P1 will close shop lor.
Geely will probably use cheaper China parts. PSA on the other hand will probably use local vendors as Euro parts would be costly.
those vendors oso use by perodua, honda, toyota etc.. do u think oni p1 use those vendor?
My point is, will U want to sue the existing vendors when U can get the same part cheaper. Take eg, a front bumper of a Proton Wira cost RM90 while I can buy the same for RM65 made in Thailand !?
well other car maker have to increase order from those vendor. That to cover vendor lost of income from p1 not ordering anymore.
i don’t understand why proton can’t beat or compare with the koreans. where did it went wrong?
Tidak apa attitute, ignoring customers complaints regarding poor assembly and quality of parts.
cannot repay soft loan, they don’t listen to rakyat’s comment about car design/spec.
too syok sendiri rebadging other cars and spent too much $ on useless R&D like perdana’s fake exhaust and double front lip.
The more interesting question would be why would you not understand?
More like by Feb 15, the RM1.5 billion has finished. If cannot find partner have to close shop.
after that who ever get p1 has to pay that RM1.5B loan.. that is not free money.
Even with foreign strategic partner plan, I dont see good future for proton cars
the people of Malaysia have a love hate relationship with P1. once bitten twice shy!
arrogance kills the deal…
Geely products are also pretty much in the same budget segment as proton while PSA is a bit more premium. Overall PSA provides the best synergy with proton. Proton can benefit from better design, fit n finish, safety, diesel engine etc. PSA on the other hand can have their own budget segment under proton. Something like a Toyota-Suzuki JV.
turn it into volvo factory. cheap volvo for everyone. settled.
Wow! So smart!
By your logic, if a Volvo is produced at a PROTON factory, Volvo prices will be cheap. You are so smart you should write a book! NOT!
bro how i wish it will really come to reality! kill off all current proton cars, and rebadge volvo. this should be one of the best things happen in Malaysia ever!
I hope DRB make the best decision for the sake of our country and no more hanky panky business. Its crucial for Proton to spread its wings and prosper globally because a domestic automotive market will always be drag and a huge liability to the country. DRB should lead Proton in any path it suits best to hasten its process to become multi-million profit global automotive company. Its crucial that the cronyism, selfishness and bad unhealthy work ethics must stop once the FSP join in. Its already half way done, the success of Proton I believe will give our economy a little boost and a huge increase in employment (direct or indirect) that we are so lacking of to be a developed country.
Easier said than done. This strategic partnership is likely to benefit Proton in terms of development & production cost and the technology transfer.On the marketing side especially the global market, it will very much depend on the T & C’s, which is likely to be dictated by the FSP..
Proton is fully owned by DRB-Hicom. The only important is profit for them, only money concerned. Nothing dealt with Malaysian patriotism. I believe either PSA or Geely, there will be beneficial for short term economic sustainability.
Sayonara Proton.
if they really want p1 to success, go for PSA.
The result is pretty much obvious don’t you think…Just say it loud ler the you know “who” will definitely instruct DRB to take the China man. Just look around ler…mark my word!
Prior to Proton, msians were able to buy imported cars at very reasonable prices. If the situation can be like how it was PRIOR TO PROTON, then all msians will support it!!
Jv with PSA to gain new technology but still do not open proton to global market. They have limited global chain n distrbutor to market proton. In terms of relibility PSA is no where near proton. Ask peugot owner they will tell u all this problem. On the other hand jv with geely not much of technolgy gain. Volvo tech not much can be used as expensive to do. Geely will have china market for proton. 1% of china market sufficent enough for proton to be profitable. Also geely will start have an open market to SEA. They first will have distribution n suppliers to market their car. No need to set up n take 10 years. Can start immediately. The big question is model adaptation. Current model from china is less tempting, no design, not efficent, spare parts problem, no service center. They good as copy cat. Maybe they can replicate what the japanese are doing.
From some sources, reported that PSA Group interested in Proton, Lotus could end up with Geely.
If this is real, Oh no, what are you thinking Proton? You should know your history with Peugeot. You should know France cars harder to maintain plus the costs. With Geely, you have bigger market. Thank you very much