With the Geely-Proton deal now officially confirmed, DRB-Hicom has revealed why the national carmaker requires a foreign strategic partner (FSP), and the reason it decided to sell off Lotus completely.
For the first bit, DRB-Hicom cites Proton’s lack of technological competitiveness, which it says could hamper its ability to develop quality products. Through the partnership, Proton will have access to Geely’s technologies, allowing it to remedy this shortcoming.
Next, the total industry volume (TIV) is relatively small in Malaysia, relative to other countries. In 2016, the Malaysian Automotive Association (MAA) reported a TIV of 580,124 units, which is less than in 2015 (666,677 units).
This leads to point number three – Proton lacks scale – whereby the carmaker is unable to maximise usage of its production facilities. This results in wasted capacity in light of the heavy capital expenditure to set up such facilities.
Lastly, with this global alliance and the technology sharing associated with it, Proton says it will experience quicker growth than if it operated independently.
As for the Lotus side of things, DRB-Hicom states the sports car producer “requires huge capital expenditure to be highly successful,” in British pounds nonetheless. Therefore, the disposal of its 100% stake in Lotus will allow DRB-Hicom to reduce its losses, and focus on other investments using the proceeds of the sale.
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Proton lack of technological competitiveness.
KLIA P1 Waja teksi pakcik open door & tap TnG. Then curiously ask him why dunwan use Power windows and he answered….
Cannot fix the problem?
Just give life-time warranty.
Lel, the excuses sound pathetic. Perodua also do business in same environment as Proton, yet they thrived because they listen to what consumers want, not what cronies want.
But nvm, Geely has arrived! With common sense, brain and unlimited resource, things can only get better. Perodua, Honda and Toyota better watch out our tongsan friend on a mission muahahahaha
Geely > all
Proton > all
My P2? its cuz we spends little money for R&D to develop shiny chrome badges and bodykits.
get your facts right bro…perodua already been sold to toyota and daihatsu with 51%…thats why they dont have their own engine and car platform..the do rebadging and a lot of redesign…even that..perodua bezza is the only car for now they make it…
proton work independantly but co-laborate with lotus and all that to have their technologies…
P2 design the bezza bumbung only maaa…
Dun forget the chrome badges. My pals there does own design wei.
True. Thats what local talents capable of.
Doesn’t change the fact their cars are just what the market wants.
There really isn’t anything wrong with Proton buying Perodua’s Dual VVT-i powertrain. The incompetent management made a huge mistake to snub that offer. The situation today would have been very different had only they used those instead of the detestable Campro + punch cvt powertrain.
Well definitely you don’t know anything regarding integrating Engines with platform.
Do you really think is that easy to integrate Toyota Engine with Proton (korean) Platform?
Do you know how much money is needed for integration?
FYI it is so much cheaper to continue and develop improvement of CAMPRO base.
What big technology lotus contributed to proton!!! Besides the badge lotus ride and handling ??? Its a big white elephant. Its a good decision to let it go.
Why ?
The fundalmental reason: Proton lacks real capable talents
With talented macai like John no wonder making loss RM4 million per day.
Thanks. My Biza and special package makes wonders to glorious P2 sales.
Biza rear seat design failed big time. Lols
the Lotus fellas will be happy seeing how Volvo shine under Geely…Geely will pull out from P1 after 3 years..
looking at those slides, its a stupidity and none logic for the business to continue except conning $ from the G…
they basically want to get rid of lotus
DRB top mgmt got the best of the deal.
Shah Alam land & yet 49% Lotus
They will sign off lotus completely. Read the previous article.
ya ada byk potensi dalam lotus. dan penting untuk penjenamaan Geely. Mgkn Gelly akan jadi next VW Group (ada sport car, premium car dll). actually target sebenar Geely ialah Lotus & pasaran ASEAN/ right hand drive. Bukan minat sangat pun dengan Proton.
DRB Hicom bijak sbb dgn pegangan 49% sales Lotus akan jadi mcm Volvo skrg. Mksd nya dgn 49% dah mampu buat untung berkali2 ganda dibandingkan pegangan 100% skrg (kalau ada untung). Tapi dari segi decision maker, aset strategik negara, nilai jenama dan potensi masa depan Lotus – Malaysia buat kesilapan yang silap dengan membenarkan syer Lotus dijual sebanyak 51%.
Tanah di Shah Alam. bijak la ini DRB Hicom. Beli Proton dulu kmdn jual dah jana duit. Ini tanah extra bonus – memang lubang buat duit – kalau dah bt development hasil untung rasanya berkali2 ganda daripada harga beli Proton dari Khazanah dulu.
So Siapa yang kurang cerdik?
Everyone with some common sense already know that. Only an egoistic leader wanted a national car. Because of him and his moronic followers, billions of rakyat money went down the drain.. Money that could have been better spent on their children’s education (that creates a generation of better educated people) or invest in property that appreciates in value.
more like cos they hicom people no know how to make cars
At least, they can produce cars but your English leaves a lot to be desired.
Are these internal documents? Heck, this is a great move. Hope that partnership with Geely can have great mutual benefits between the 2 companies, especially in making an impressive dent on the domestic market.
Like ths ar? Malaysia Inc also sould find FSP to help run the country.
Malaysia Inc engage consultancy FSP services at all time.
But now alredi switched to 100% local PEMANDU. And with consultancy phase just ended, its time to fully implement full steam ahead.