The government has apparently extended a line of credit to Proton amounting to RM1.7 billion as a further stopgap measure, The Edge reports.
This comes on top of the conditional RM1.25 billion soft loan provided to the national carmaker last year, which is said to have been used up, necessitating a further injection of cash.
“The cash from the soft loan has been fully used up to pay vendors. But Proton’s sales have not improved, although it has been marketing its new cars very hard, throwing promotions left and right. It needs more help from the government,” a source familiar with the matter told the publication.
The report added that Proton will not draw down the whole sum at once, the money supposed to tide it over until parent company DRB-Hicom secures a foreign strategic partner. As last reported, Chinese automaker Zhejiang Geely and French company Groupe PSA are the two companies looking to secure a tie-up with Proton.
In April, it was reported that Proton had requested between RM1.5 billion and RM1.8 billion from the government to cover massive losses in its operations. The company is expected to record major losses in the financial year 2017 in the midst of slowing sales, based on the RM1.426 billion net loss it reported in FY2016 ending March 31.
Government funding alone will not sustain Proton in the long run, and so pressure continues to mount on the company to secure a foreign partner that will inject the necessary funds to turn things around.
UPDATE: It has been reported that Geely has agreed to purchase a 49% stake in Proton, as well as a majority stake of between 50% and 75% of Lotus.
AD: Drive the Proton model of your dreams. Submit your details and Proton PJ will get in touch with you.
Looking to sell your car? Sell it with Carro.
john
on 
Henry
on 
Amoi
on 
Mikey
on 
YB Kunta Kinte
on 
Proton Lover
on 
Cool
on 
John Ohwai Mental Asylum
on 
Jason
on 
Reko
on 
Susukotak
on 
Feroz
on 
wkaka
on 
Ollie
on 
Ismail
on 
RedPlanet
on 
DK
on 
TT
on 
oh mak lu
on 
Bat
on 
TakNakProton
on 
Anything But P1, Greedy P2
on 
ilol
on 
Jacky
on 
DOH
on 
Proton Dafuq
on 
Andrekua
on 
john
on 
azrai
on 
lilytan
on 
xoxox
on 
Tay
on 
Proton S
on 
AngPow
on 
Apanama Proton
on 
Trololol
on 
Trolololololol
on 
huhaha
on 
johnmuackmuack
on 
JW Wong
on 
thepolygonal
on 
john is otak batu
on 
Roger
on 
AI-generated Summary ✨
Comments express strong skepticism and criticism regarding the RM1.7 billion government credit to Proton, highlighting concerns over mismanagement, lack of transparency, and whether the funds are effective or misused. Many condemn the sizable government bailouts, questioning if Proton's financial troubles could have been avoided through better planning or due to corruption. There is widespread distrust in official figures, with speculation that actual costs are much higher. Several comments also blame Proton’s leadership and government for poor performance, heavy losses, and reliance on taxpayer money. A few suggest that Proton should be sold or shut down, criticizing its reputation and future viability. Overall, sentiments lean heavily toward frustration, concern about the misuse of public funds, and disappointment with the country's handling of the automotive industry.