Proton might follow Perodua’s path, with foreign strategy partner having a 51% equity stake – minister

Proton might follow Perodua’s path, with foreign strategy partner having a 51% equity stake – minister

Proton, which is in its final phase of deliberation over its choice of a foreign strategic partner (FSP), might follow Perodua’s path by allowing its FSP to have a 51% equity stake in the company.

According to a Bernama report, this was said by second international trade and industry minister Datuk Seri Ong Ka Chuan in response to a question in Parliament about Proton’s selection of a FSP and whether selling off a 51% stake would affect the future of the national carmaker.

“Proton could follow in the direction of Perusahaan Otomobil Kedua (Perodua), but (it) may not be necessarily so,” he said, adding that Perodua has Daihatsu as a strategic partner, with the latter having an equity stake of 51% in the business. “Daihatsu needed to acquire 51% equity as Perodua required high technology investments,” he said.

He urged all to be patient, because the evaluation process is still going on before the decision on a FSP is announced within the first half of this year. Ong said at this stage, matters relating to equity were still being discussed.

Proton might follow Perodua’s path, with foreign strategy partner having a 51% equity stake – minister

Last month, Ong quashed rumours that Proton was set to sell its majority state to a foreign partner, stating that a final decision has not been made. “The government is not relinquishing the country’s proprietary rights. We are looking at the opportunities to help Proton grow more efficiently, so that it will be on par with other big brands in the global car industry.”

Former Proton chairman Tun Dr Mahathir Mohamad is against the move to shift the carmaker towards foreign ownership. Last month, he said that there would be major implications for the company, its suppliers and vendors if this was to happen.

China’s Zhejiang Geely and France’s Groupe PSA are the potential candidates to become Proton’s FSP. The French company has submitted a bid for a partnership with Proton, announcing last month it was in talks with the Malaysian carmaker for a deal. As for Geely’s bid, a report early this month said that the Chinese automaker may pull out of negotiations.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Once got 51%, please immediately sack the ceo and the chief designer, and relook into the supplier.

    Like or Dislike: Thumb up 59 Thumb down 16
    • Michael Goh on Mar 22, 2017 at 6:56 pm

      Don’t worry, any partner that has 51% will do that. 60,000 staff making 72,000 cars. That is like 1 staff to 1 car ratio per year.

      No other car company in the world is like this. So, they will have to sack the deadwood

      Like or Dislike: Thumb up 21 Thumb down 1
      • Sama L00 on Mar 24, 2017 at 9:39 am

        PSA doesn’t close down some Proton department or Proton will get PSA closed down financially. Simple math

        Like or Dislike: Thumb up 0 Thumb down 0
    • Sack designer on Mar 22, 2017 at 7:22 pm

      Sack the designer!!!

      Like or Dislike: Thumb up 14 Thumb down 0
    • Peter on Mar 23, 2017 at 4:39 pm

      Proton: 51%, no prob. Giv you 52% also no issue. The only condition is you cannot do this, this & this and also that, that & that … and this & that subj to chg anytime. Oh, 1 more thing, you can’t touch on ‘sensitive’ issues … you know. That have to refer to gov. In return, I let you use my ‘advanced’ facilities including the toilets.
      PSA: …

      Like or Dislike: Thumb up 2 Thumb down 0
  • kzm (Member) on Mar 22, 2017 at 5:51 pm

    Not a bad thing though..

    Like or Dislike: Thumb up 17 Thumb down 6
  • tokmoh. on Mar 22, 2017 at 5:57 pm

    Sembang lebat.

    Since Geely tulan edi, future proton all are rebadge peug/citroen/open/vauxhall.

    Be warned : it’ll be a nasty ownership experience.

    Like or Dislike: Thumb up 23 Thumb down 10
    • jimbond on Mar 22, 2017 at 6:56 pm

      mana tau Proton S90 terbaru ke.. kikihkikih

      Like or Dislike: Thumb up 0 Thumb down 4
      • tokmoh. on Mar 23, 2017 at 9:10 am

        It’s official edi. Geely told proton to go fucuk themselves.

        Proton made the biggest mistake ever.

        Like or Dislike: Thumb up 13 Thumb down 0
  • Michael Goh on Mar 22, 2017 at 6:12 pm

    Yes, this is a good idea. Learn to be humble and have humility. You are near bankruptcy and yet, you want to demand so much and ask your white horse partner to kowtow to your terms.

    Look at Volvo, they were nearly bust, but Geely pumped in USD$12 bil into Volvo. Now Volvo is doing so well. Demand for their cars are so high.

    Learn to be humble and have humility

    Like or Dislike: Thumb up 65 Thumb down 34
  • Michael Goh on Mar 22, 2017 at 6:14 pm

    One thing I still cannot understand, Gomen always say Proton is in private hands. And yet, Gomen is here making decisions and announcements for Proton.

    So is Proton really private under DRB or is Proton still under the Cabinet to decide for them? Looks like Proton cannot make decisions unless cabinet approves them.

    What private is this?

    Well-loved. Like or Dislike: Thumb up 84 Thumb down 33
    • Proton is still heavily depending on government grants and loans. The last loan 1.5 billion was given out with condition, i.e. a strategic partner. Also, with that huge amount of debt to the government, government technically owns Proton, not DRB Hicom.

      Like or Dislike: Thumb up 7 Thumb down 0
    • kzm (Member) on Mar 22, 2017 at 7:57 pm

      They loan money from govt.. so there will be term n condition.

      Like or Dislike: Thumb up 4 Thumb down 3
    • Azrin Aziz on Mar 22, 2017 at 8:52 pm

      The 2 billion softloan from gomen is the cause why gomen can interfere.

      Like or Dislike: Thumb up 3 Thumb down 3
    • Private parts-talking, whether the useless gomen or useless proton mgmt, both sama sama useless

      Like or Dislike: Thumb up 9 Thumb down 2
      • The only ones useless is those that bash w/o constructive criticism.

        Like or Dislike: Thumb up 7 Thumb down 10
        • Those that can only talk without action are the useless ones. You can defend Proton all you want behind your monitor but it will not help

          Like or Dislike: Thumb up 4 Thumb down 1
    • Do u even read what was said b4 bashing? The minister said P1 have free reins to choose its destiny, even if in the deciding hands of its FMS.

      Its something that new Oppo dear leader din gip when he was meddling and stifling P1, unlike now.

      Like or Dislike: Thumb up 4 Thumb down 5
  • Mikey on Mar 22, 2017 at 6:58 pm

    Ong Ka Chuan is just talking. There is nothing concrete yet. Come end of June, he will have to eat Humble pie again just like other ministers B4 him & will give other excuses for not forming a FSP.

    If there is a bet that P1 is forming a FSP with PSA or Geely, that guy would have been bankrupt by now bcos the deals have been postponed or aborted since VW era. Anyone dare to take a bet on P1 forming a strategic partnership with the remaining 2 left ?!

    Like or Dislike: Thumb up 3 Thumb down 1
  • Alex (Member) on Mar 22, 2017 at 8:15 pm

    Damn… anyone remembers what is the main reason VW pull the plug on Proton over a decade back? VW wants 51% and Proton would not bulge…

    Imagine the Saga, Persona, and Perdana today if Proton made that decision back then.

    Imagine how much debt was saved.

    Damn….

    Like or Dislike: Thumb up 15 Thumb down 0
    • Imagine u pipu wud have came back and bash P1 for dieselgate and DSGgate….

      Like or Dislike: Thumb up 8 Thumb down 15
  • Mr Suka Syukur Selalu on Mar 22, 2017 at 8:34 pm

    Proton donwan to die, but Proton oso cannot live…..

    Like or Dislike: Thumb up 6 Thumb down 2
  • Sell or Scrap those imbecile company on Mar 22, 2017 at 8:56 pm

    Sell 99% also ok.Don’t listen to that old senile.He got no power or any right to say anything.Bcoz of him auto industries in Malaysia turned dark ages and become a laughing stock.

    Like or Dislike: Thumb up 5 Thumb down 2
  • EnergyAnalyst on Mar 23, 2017 at 6:29 am

    “Proton could follow in the direction of Perusahaan Otomobil Kedua (Perodua), but (it) may not be necessarily so,”

    Could but may not….This second MITI minister is saying nothing concrete basically. End of report

    Like or Dislike: Thumb up 7 Thumb down 1
  • Add A Comment on Mar 23, 2017 at 8:32 am

    Perusahaan Otomobil Kedua – Now only I know. Stupid me…

    – I Have Just Added A Comment –

    Like or Dislike: Thumb up 1 Thumb down 0
  • thepolygonal on Mar 23, 2017 at 9:40 am

    A sad ending to a once proud empire. Konon not going to sell majority stake… big title in news saying Proton belongs to Malaysia and all that few weeks ago… now.. 51% stake boleh dirunding… the indecision shows desperation. Good luck!

    Like or Dislike: Thumb up 3 Thumb down 0
  • lilytan on Mar 23, 2017 at 9:54 am

    Back to square one

    Like or Dislike: Thumb up 3 Thumb down 0
  • That was the reason proton still can not find a partner till today.

    What they know is to protect the cronies and bloated staff and want control.

    Which company want to buy the 51% stake and let you control?

    You think your partner is so stupid to have the arrangement?

    Like or Dislike: Thumb up 6 Thumb down 0
  • Concerned Consumer on Mar 23, 2017 at 11:36 am

    So if Geely pull out only leave PSA. They better just announce the winner lah coz PSA win by default. Or wanna cancel this too?

    Like or Dislike: Thumb up 3 Thumb down 0
  • Same L0rrr on Mar 23, 2017 at 4:35 pm

    Akhirnya Proton belajar dari Perodua! HAha

    Like or Dislike: Thumb up 2 Thumb down 0
 

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