According to Malaysian prime minister Datuk Seri Najib Tun Razak, Proton would have experienced losses of up to RM1 billion this year should DRB-Hicom’s deal with Zheijiang Geely not take place.
During a speech at the launch of the eighth phase of a programme to put up LED street lights in various kampung in the country, he added that the government can no longer use the rakyat’s money to save the national carmaker.
“Proton recently sold just 6,000 units a month, which means 72,000 units a year, so how can it be profitable? In the previous year, it lost RM500 million. This year, if there wasn’t any restructuring, it would lose RM1 billion,” said Najib.
“Last year, the government helped by providing a soft loan of RM1.5 billion, and this year, Proton asked for another RM1.1 billion for R&D (reimbursement). This is the rakyat’s money that is being used to save Proton,” he continued.
He continued by saying that this isn’t a matter of emotions, but one relating to the success or failure of a business. “We can’t be proud of a national car but still lose billions of ringgit. We must be proud of a national car that is profitable and beneficial to us,” he said.
Previously, former prime minister and Proton chairman Tun Dr Mahathir Mohamad also shared his thoughts relating to the Proton-Geely deal, where he expressed his sadness at what has transpired.
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How long can the Geely marriage last?
One party just started in 1997, 13 years later than Proton. But it made USD$30 billion in 2016. That is RM135 billion. In 2015, it made US$26 billion and in 2014, it made US$24 billion. They are running fast. Very very fast.
The other party is still in slumber, cannot even run, walk also susah. Still losing RM4 million per day. All the time begging money past 20 years. All believe in lepak and rilaks. Until today still using the same vendors and supppliers despite knowing these vendors and suppliers are raping Proton overcharging 10x whilst giving super low quality parts.
How the marriage going to last? Totally two different cultures!
What will Geely do when Proton says it will NOT replace even a single supplier and vendor?
Because they needed to protek, protex, protects the vendors, otherwise they will go out of business BUT ripping off millions of normal Malaysians by giving sub-standard quality cars and getting loans from the Gov to keep feeding these parasites are OK. And you wonder why Proton was never successful.
DRBee is the actual moron here. Supposed to save proton but ended up selling proton with its asset stripped. This conglomerate stuck in a lot of businesses but non have been highly successful. Look at modenaz for instance, its just bikes for god sake not some rocket science, 22 years down the road and still rebadging? And now proton to be successful by rebadging boyue? Then ur brain might hv been infested with the same moronic parasites.
If Malaysians are patriotic, P1 would not lose RM1B this year and be what it is today. So think back twice before bashing P1
You think geely is really good? No. It only excel because it has a volume market in China. Geely is not even successful outside of China.
There you go, making up facts and figures again. The scary thing is that naive people seem to be so easily bamboozled. The facts are (from Reuters) –
“For 2016, net profit more than doubled to 5.1 billion yuan ($741 million), its strongest growth since 2008. The figure is set to rise 37 percent to 7 billion yuan in 2017, showed a Reuters poll of analyst estimates prior to Geely’s Wednesday filing.”
There is no way you’re going to be able to explain how US$741 million became your figure of USD30 billion (that’s US$30,000 million, BTW) so don’t even bother. Thank you.
Hmm…
P1alone/tun/other side
or
Geely/PMgov
Choices, choices, choices…
I think someone feed the wrong info to PM. P1 lost more than 1.4 billion for the past 12 months as mention in the balance sheet & not 500 million as mention.
He mentioned 1B not 500mil, as said above article & headline.
It’s mention – “In the previous year, it lost RM500 million”. Are U blind or what?!
forgive him. he can’t read properly
What najib said had been well known by public many years ago. It’s ashamed to take so many years to be admitted by gov in public after a spat with its predecessor.
Dear PM, since it is the rakyat’s money that is being used to save Proton, when will P1 returning the LOANs???
Geely will be answering for that.
Bapak Borak Anak Rintik Syndrom. john memang Boleh
For once I fully agree with what Najib said!
“Last year, the government helped by providing a soft loan of RM1.5 billion, and this year, Proton asked for another RM1.1 billion for R&D (reimbursement)”
Hmm…so that adds up to 2.6bil. Just saying :)
1.5b. This year asking but Gov did not give. Just saying :)
Cukur Proton sudah turunkan harga servis, pasti ramai kembali servis di Proton Edar. Kenapa tak puji kerajaan?
Terima kasih kerajaan. Terima kasih Geely.
and it will have losses of over RM2Billion after given to Geely. under DRB it will go down even more and Geely will also pullout. please PM, dont give proton anymore money. let them do or die themselves.
Geely not DUMB to throw money down the drain. TDM cry bcos his crony vendors all out of job soon. Now finalyy, Proton will fly.
Dont believe the 49.9% story la, think Geely Stupid kah.
Proton beg people to buy, can still demand??!!
All we read is that a lot of monies are being used to save the national car. What we do not read or hear much is what are the steps taken to reduce the operation cost and make the company turn around. RM1.5 billion loan supposedly for R&D. What sort of R&D? Another dubious activity to pay back DRB-H for taking on a huge lossing company? Materialise or not, the Rakyat have the rights to know what sort of R&D have been done, since it is their monies, no? We are here talking about having economies of scale to match the large operational cost. It is the chicken first before the egg. In short, if Geely is given full authority to run, the company will turn around. If this is true, then it surely shows the incompetence of the people at Proton, and they should be relieved.
As they said, jangan persoal…
why don’t just sell 100% of the company? if still managed by DRB-Hicom, it will still be the same.
More fund for bags…
For once PM Najib Razak is right….
u bloody idiot john.. i know this is not ur real name. so be a man show ur real identity, even i knew who u r.. How much the gov. had pay for u for doing all this stupidity for so long?.. U can earn that for today, but u are spoiled ur child future.. think twice before u did something n pls use ur brain first…
Thank you for stating the obvious Mr. Prime Minister….
First thing first. The soft loan is not bailout from rakyat money. Its a grant everybody is entitle to. So how can it is a burden if its up for grab by everybody?
And second, where is the reports that proton will lose that much?
Third, proton account is audited never fail and it can show how much they made over the years and how much they are making now
Fourth and most important thing is, since proton is sold then there is no need of protection anymore. Car tax or whatever associated with tax on vehicles MUST be abolish now.
I am expecting a sub 100k ford mondeo by end of this month