DRB-Hicom appears set to make a material announcement soon. The conglomerate – Proton’s parent company – had its request for trading suspension approved Bursa Malaysia Securities today, pending the release of a material announcement.
This strongly hints that an announcement related to Proton’s foreign strategic partner (FSP) deal will be made soon.
Chinese automaker Zhejiang Geely and France’s Groupe PSA are the leading contenders to become Proton’s FSP. In March 2017, DRB-Hicom issued a statement that said both bidders were present and accounted for and were still at the negotiation table.
Earlier, second international trade and industry minister Datuk Seri Ong Ka Chuan had said that Proton will be able to announce its FSP by May. Looking at the timing of DRB-Hicom’s request for the suspension in the trading of its securities, it all points to a deal being announced in the coming week(s).
It’s been a long time coming – stay tuned to paultan.org for more updates on this matter.
UPDATE: DRB-Hicom announced today that Zhejiang Geely will be its foreign strategic partner (FSP), with Geely acquiring a 49.9% equity stake in Proton. The deal, which is subject to regulatory and shareholder approval, will also see Geely acquire a majority stake (51%) of Lotus from Proton.
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The white elephant turning into red.
Debut of Geely Malaysia.
Hopefully the Chinese can teach us how to do business. It is rather obvious that Proton does not know how to run itself.
But be warned. The Chinese from China are very hardworking. They will not tolerate lepak and tido in office or factory hours.
And they will definitely not tolerate minum teh and kaman kuih lapis in the kantin 8x a day.
I hope Proton workers are ready for a paradigm shift in thinking. Don’t be like the Mat Salleh CEO who got a shock to see MAS workers sleeping during office hours and then later arguing that it was their RIGHT to do so!
Asking money is one thing. But as a company you must show sincerity.
Not even one director or management has offered to take a pay cut. Company losing RM4 million a day also, using rakyat’s money also, they still want their fat 6 figure per month salary and they many months bonus salary.
In overseas, if company is doing badly, the management and directors will offer themselves a pay cut voluntarily. In Proton, it is the opposite. They still benefit from fancy drivers, fancy Audi A8L limos whch cost RM700k each and loads of other perks.
This is shameful!
Crossing my fingers…
South East Asians love Japanese cars due to its simplicity, durability, reliability, easy maintainance, low running costs and their manufacturers strong commitment for after sales support. At current form, it is going to be tough for a French/German or Chinese/Swedish car maker, especially with a Proton badge to penetrate in this regional market.
And thats the problem. Us ASEAN luvs the badge. Thats why they got away with crappy specs for so long.
Why cant proton badge be loved?
Proton got some serious image problem. By associating it with Geely rather than PSA will not solve the problem. Cars in msia are expensive. Once u buy a lemony proton u will stuck with it for 9 years. That 9 years of regrets that wont go away easily. Unless someone with higher prestige is rescuing Proton, the brand will be going no where.
I rather luv the safety features and extra kit than the shiny badge. What about u?
Me and most Malaysians love non-Proton cars.
Yes, U are right. Most of us are suckers when we buy a car bcos of the BADGE. Unfortunately, U also said that Persona & Suprima is very gud & safest in it’s class. How can they suddenly turn “crappy specs”??
I din say it, u did.
Denying does not mean U did not say/type it. Unfortunately 4 U, It’s recorded in PT.org many times over & over again.
Geely.
Why not straight go into chapter 11?
What is Chapter 11 in MY Constitution?
Hope we’ll have cheaper suv in the market before end of the year. Now all carmakers cut throat with ridiculous prices. With proton/perodua penetrate the segment market, the prices will be more competitive
Geely has the answer in Emgrand X7.
Or Lynk & co 01.
Dear geely or PSA,
Your brand name is ever more undesirable than our already dreadful proton. If you rebadge your cars as proton, we will not buy it and hope you close shop as well. We Malaysians hate it so much.
Only u saja.
He is right. That is why proton sales is so pathetic.
can you elaborate the word ” we ” please
Suddenly you syiok sendiri and represent all Malaysian. Too much hate in you man. Take a holiday.
U are spot on. Both PSA and Geely are not really desirable but at least PSA brand is much better than Geely. Similar to VW, the aftersales sucks but surely can improve. But Geely as a brand cant surely makes proton a better brand except if it lets proton associate itself with volvo instead.
Me and majority Malaysia will give Proton a 2nd chance after takeover. As how they did with Volvo brand.
Can i know what will happen to the proton cars after the takeover?
The cars will remain as cars they will not turn into lorries…
Cheaper I hope. Now that geely will tighten the screw on the vendors.
Proton will probably be the same possibly worse. Geely will pump in some money from buying the stakes but eventually will run out again. If Geely can dictates the decision in proton then proton will probably rebadge Geely cars or be positioned below Geely as budget cars. They will also buy parts from china. Local vendors will eventually close shop.
Nothing happens except Proton will become a better car brand than before
Why is it news if they are only selling 49%?
49% stake sale.. Not controlling stake. Geely will not able to dismiss the crap vendors… If 51%, then can hope to see prolvo xc60..
Proton owner can have cheaper access to China made spare part from now on. The strategy could be:-
1. Using Volvo brand for the premium D-class cars.
2. Using Geely brand for China market for the SUV.
3. Using Proton brand for other A, B, C sedans and compact especially for SEA.
The Saga, Persona will be continue selling but slowly parts will be interchange with Geely’s.
Initially, Geely will throw a small bone to Proton & local market. But ultimately they are more interested in the bigger Right Hand Drive market, hence the sales & manufacturing of Geely cars (using Tg Malim plant) for this market. No way will they “give away” crown jewels Volvo to Proton, this would be marketing & PR suicide. Eventually, Proton will go back to rebadge Geely cars for local sales but all exports will carry Geely badge. But Proton will still be the the local hero, so you can be proud of that.
just rebadge volvo as proton la lol
In the mean time, Proton still syoik sendiri…….
As usual.
Didn’t Geely pulled out prematurely?
Pulling put prematurely will never a happy ending.
That’s only one of the trick to get the share price down, and the owner buy it at that low price. Insider trading la kawan.
Geely has won by outbidding PSA. Money apparently is more important. PSA is a better fit for proton but it seems DRB more interested in cash, unsurprisingly. Lotus will be controlled by Geely as well. The key question here, where does proton lies now under Geely?
Entry level brand. And access to ready made and under utilised assembly plant. 10 ASEAN countries. 5 RHD, 5 LHD. And zero import tax.
The only way to save proton is terus cheap electric car sahaja… something no one is offering now.
Good. Just when Volvo announced they’re stopping diesel development to focus on electrification.
As the tech trickles down to parent Geely, can rebadge to Proton then.
My PM went to china then proton sold. indeed good bizman
Geely main aim is Lotus. Now they have Volvo and Lotus. Sudah capai KPI. Proton? Geely only got 49% share can only use the factory to pasang Geely cars, cannot do much changes unless someone sell them additional 1.1% share.
Like it or not, Malaysia will become part of China very soon!! Hail Geely, Hail China for saving our people from “BLACK HOLE”!