The international trade and industry minister says that the government’s decision for Proton to enter into a strategic partnership with Chinese automaker Zhejiang Geely is purely a commercial move and was not done as an ‘act of vengeance’, as implied by former prime minister Tun Dr Mahathir Mohamad in a post on his blog last week.
Datuk Seri Mustapa Mohamed said the deal for DRB-Hicom to sell 49.9% of Proton’s stake to Geely was made in the best interest of the national carmaker, its vendors and employees. In a media statement issued over the weekend, he called on critics of the Proton-Geely partnership to stop their negative comments over the upcoming deal.
“To the critics of the Proton-Geely partnership, I say enough is enough. Logic and common sense must prevail against emotions at any turn, if we are to succeed in this rapidly changing global landscape. The choice before us all is clear. We either let Proton restructure its business with the help of a foreign partner or we turn a blind eye to the problems that the company is facing,” he said in the statement.
Mustapa said that it was very unfortunate that the government’s sincere intention and unwavering commitment of wanting Proton to succeed were labelled by Tun Mahathir as an act of vengeance. He said there was no point in maintaining ‘national pride’ if it meant letting the company continue bleeding cash and jeopardising the welfare of its workers.
The following is the media statement issued by Datuk Seri Mustapa Mohamed, in full:
1. Much has been said about the future of Proton as a result of its proposed partnership with Geely. This is rather premature as it is still too early to tell but the indicators are pointing towards a brighter future ahead given, the track record of Geely in reviving Volvo. However, what we do know is that without the RM1.5 billion soft loan by the Government in April 2016, Proton’s future would have been challenging – the welfare of its total direct and indirect 350 vendors and 60,000 employees would have been at stake.
2. The allegation that the Government has not disbursed the funds promised to Proton is baseless. From the total soft loan of RM1.5 billion, the Government has disbursed RM1.25 billion to Proton that was largely used to settle the outstanding payments to its vendors. The balance of RM250 million will be disbursed in about a week. Separately, as announced by the Minister of Finance II, the Government will reimburse Proton the research grant worth RM1.1 billion when the final agreement with Geely is signed in July 2017.
3. While this assistance is unprecedented in an open market economy, it was a responsible move by the Government in ensuring all viable options are explored to secure a better future for Proton. However, the Government cannot keep on helping out Proton every time it faces financial difficulties. For this reason, the RM1.5 billion soft loan was made conditional upon Proton securing a foreign strategic partner.
4. Today, the Malaysian automotive market size is about 600,000 units annually and for any company to succeed, it has to meet the economies of scale. Proton has been coming to the Government with a number of export promotion plans in the last five years. Unfortunately, none of them has materialised.
5. It must be reminded that the decision to partner Geely was purely a commercial decision made in the best interest of Proton, its vendors and employees. It was made after taking into account a number of factors including the benefits to be derived from Geely’s technology, R&D facilities and injection of cash.
6. It is very unfortunate that the Government’s sincere intention and unwavering commitment of wanting Proton to succeed were labelled by Tun Mahathir as an act of vengeance. The Government will and always protect the best interest of the nation, and we do not make decisions based on personal vendettas and the need to settle scores.
7. The new reality is that the automotive industry has become very global and inter-connected. Joint ventures have become a norm as not many carmakers can stand on their own feet, with examples such as Nissan-Renault and Cherry-Jaguar Land Rover. What is the point of maintaining ‘national pride’ as claimed by Tun Mahathir if it means letting the company to continue bleeding cash and jeopardising the welfare of its workers?
8. Furthermore, to repeat the allegation that we are sacrificing national pride is pointless as evidenced by the Perodua-Daihatsu partnership and many other joint ventures. As we know, Malaysian companies and GLCs also have major stakes in a number of operations overseas. We live in a highly- globalised environment and in order to successfully compete globally, we must pool together our resources and forge ahead.
9. To the critics of the Proton-Geely partnership, I say enough is enough. Proton will have a foreign strategic partner moving forward but Malaysia still retains majority control. Proton is known globally as a Malaysian brand and nothing can take that away from Proton.
10. The choice before us all is clear. We either let Proton to restructure its business with the help of a foreign partner or we turn a blind eye to the problems that the company is facing. At the end of the day, it is the interest of Proton’s vendors, management and staff that must be prioritised above and beyond pride as well as nostalgia. Logic and common sense must prevail against emotions at any turn, if we are to succeed in this rapidly changing global landscape.
Looking to sell your car? Sell it with Carro.
Ah, I see you’re a man of culture too.
Tok Pa, you understood the might of Geely, and consented Proton to joining the Geely family. A wise move.
Volvo > all
Lotus > all
Lynk & co > all
Geely > all
Proton > all
London Taxi > all
Sapot FSP/gov/PM (like) or sapot nationalise/otherside/tun (dislike)?
Whatever it is, vengeance or not, I hope Geely put a person from mainland as the CEO of Proton. He will surely turnaround the company in no time.
Also, I hope Geely, who owns 49.9%, is entitled to replace about 5990 workers in Proton with workers from mainland. They work super hard, no teh tarik 8x a day, no lepak, no rilaks, no looking at awek kilang etc.
Productivity sure will 10 fold.
R&D 1.8Billion bolih beli byk diamond
But still not enuff to complete that undersea tunnel study. Need more sheeps to gips.
Lucky Geely save Volvo. China brains and hard work has turn the company around.
Hopefully, Geely pump in some brains, hardwork and focus to the existing Proton workers. Then Proton too can turn around.
Enough of lepak, rilaks, minum teh 8x, minum sirap bandung dan makan ketupat whole day long. Time to work hard now!
Hopefully Geely don’t get a shock of his life when he finds out, all Proton’s vendors and suppliers are the SAME the past 30 years.
We all know, Proton cars got their bad name from the super low quality parts supplied by cronies who overcharge Proton by 10x.
What will Proton do when Geely says, they can source the same parts, from the same distributors for 10x less?
Say Abang Sdn Bhd gets a screw for RM1 from Kuok Sdn Bhd and sells it to Proton for RM10. Now, Geely can get the same screw from Kuok Sdn Bhd for 50 sen.
What will Proton answer?
Fitnah detected….kk
Mr YB Kunta Kinta,
What proof do you have for your allegations as follows below?
1) Teh tarik 8x a day,
2) Lepak,
3) Rilaks
4) Looking at awek kilang etc.
If you can’t show proof right here, I suggest you consider writing about something else that you can substantiate.
Aikon, the proof is Perodua. Look at the company, far younger than Proton but makes so much of money. And they hardly get any orders from the Gomen as a sedekah to help.
Proton, 90% of their orders come from Gomen departments, Enforcement Authorities, Army, Bomba, TUDM, TLDM LTAT etc etc etc.
And yet, Proton can lose RM4 mil per day.
Both also Malaysian companies and Malaysian workers.
The only conclusion? It is teh tarik 8x a day.
yOUR hIGHNESS aIKON
What proof do u need?
10000 workers producing 70,000 cars annually.IN THAILAND,5000 workers produce 300,000 cars.
You really want proof? Go and ask special permission n see for your self….the rotten culture there.
Since when 90 percent orders come from gomen? You make cars based on demands
I didnt see any proof there
Bashers dun need proof. They have cave “facts” from the dripping water.
YB Kunta Kinte and Albert,
That is not proof. That is mere conjecture.
Again, your statement that 90% of sales comes from govt depts holds no water. Please show the proof here. A link? A PDF document? You have nothing but pure assumptions.
You can conclude that the issues of the company is caused by 8 x teh tarik a day? I believe that you should come up with more intelligible reasons. Otherwise, you and Albert cannot be taken seriously with such shallow accusations.
If you want to bash, please bash responsibly with facts and evidence and not mere conjecture. I’d like to see the facts that you can come up with as well. I’m sure others will want to know too. Will be interesting…if only you can provide the info.
By the way, I’m not the one making these accusations against Proton. If you do have solid, undeniable proof Albert, then show it instead of asking me to dig it out myself. I just want to see what you say is true or not and it is your duty to show proof since it is you that made the statement.
same like politician gaji only RM12k but can afford a Pink Diamond for RM120 million. Still need conjecture?
Fitnah detected again….kk
I think Geely will become Gila when they open the books…..omg….like u said,tons of garbage n deadwood to remove plus super duper overcharging crony suppliers.
The marriage ,I doubt will last.Remember,prootong is like Elizabeth taylor…the CERAI SPECIALIST.
When friction and tempers n politics set in,geely will call it a day.Just watch.
You cant merge PRODUCTIVITY with MEDIOCRITY.IT IS INSANITY.
How to proof gaji only RM12k per month but can buy Pink Diamond for USD$27.3 million (Rm120 million)?
Wah Baik punya Fitnah…. hadiah 10000 pekerja di Proton utk lu minta maaf. Pemfitnah sesuailah …. Ambik lah dosa 10000 individu di Proton tu.
Ringan timbangan di waktu pembangkitan. So please fitnah lagi bebanyak ye. Supaya ramai org masuk surga, thanks for fitnah king…..
Your 2 cent comment …Remain worthless as it is.
Sapot diamond pink roket !
Sapot incomplete undersea tunnel!
Sapot hiway in forest!
Sapot headless chicken!
Sapot Cincin
Sapot derma
Sapot hippo
Sapot DOJ. Sapot Pink 22 carat diamond berharga USD27.3 mil (RM120 mil) dan sapot yacht.
We support Pink Diamond 22 carat
Sapot bench warmer!
Sapot famili dinasti!
Sapot hypocrisy!
Sapot other side! Dark side!
Fitnah
If there is so much trust then why 49.9%
only ? How is Geely to impliment drastic measure & give P1 a total makeover ?
P1 management still living in denial, still with that oversized ego mentality.
I cannot understand one thing. Geely ONLY gave Proton RM170 million for 49.9% of Proton. But also gave Proton the rights to rebadge Geely SUV which is worth RM600 mil
So, infact, Proton only has RM170 million cash. This at most will last 2 months. How are they going to pay their workers when they are losing RM4 mil per day?
Thats for Geely to worry not urs.
Saya Putar , Halim
Why you replied to your own dupe kk??
Send Proton CEO to FGV!
Don’t use hate to usher more comments. Plus
Kunta maniac, are you a jobless person? Always lurking in this forum with negative comments.
that mean u don’t know how business work..
From deducing his mindless ramblings, he never did. After all, what business does he knows from inside cave other than digging a hole and doing his business there?
Sick of this Kunta maniac. Jobless dude lurking in this forum 24/7
That’s why DRB they diversify their business….. Pls Don’t judge strategic action using 2cent comments.
Syed Mokhtar also got 49% of Lotus. Sama2 both need to take care of each other. U hold my ball, I hold your ball.
Geely tell DRB/Syed Mokhtar : do as I say about what to do with proton, I’ll do as u say to make sure ur 49% in Lotus is profitable.
Win-win.
Besides, Tok Pa said it himself, Proton is still national car, the benefit of being one remains. Geely is smart, they’d rather hold 49.9% in Proton and gain favours as “national car”, rather than own 100% but treated like any other import brand without much favour.
After all, mission accomplished, they gain control of Lotus. They gain Tanjung Malim plant. Their aggressive expansion plan will soon be in motion.
Mustapa Mohamed said the deal for DRB-Hicom to sell 49.9% of P1 stake to Geely was made in the best interest of the national carmaker, its vendors & employees.
I heard you loud & clear Mustapa. It was & always about P1, vendors & employees. It was & NEVER in the interest of it’s people. Thank you for confirming.
Correct Tok Pa.
Proton is a rough unpolished pink Diamond.
Yup. Despite what pipu says, its a diamond in the rough. With the right amount of care and work done, it will shine brightly as it supposed to, no thanks to that geriatric on the other side. Now w/o him, they have a fighting chance. So remember, choose wisely, not him and his Team dark side.
choose wisely, choose Geely.
Geely got RV ka?
Volvo & Lotus developed & made in Tanjung Malim
Kudos to GEELY china.
Correction : Tata Group from India acquired Jaguar Land Rover and not Cherry from China. Please get the fact correct.
He’s probably referring to the JLR and Chery joint venture in China to manufacture JLR vehicles for Chinese market.
Boss man. Does it means Jags & Landies r made in China now?
The Chinese plant is not JLR’s only plant. A majority of the output would probably be for domestic China consumption. Our right hand drive JLR cars come from UK.
Thanks for the brief. Gud day!
Geely will fail big time with Proton. What a silly gamble.
Proton oledi failed big time. what else there to fail
Really? Then why not sell it ten years ago? It would saved a lot of money.
Because it is not for loser like you
Guess who was REALLY in charge of gov back then?
HAIYYAAAA…! Tak jual, bising; Suda jual pun mau bising! Apa lagi maw?
Geely got what they wish, that is Lotus deal. As for 49% ownership by Geely, easily recovered from sales of Lotus and that offset 49% investment. Geely will hold the 49% percent stake as the minor shareholder and it not going to change Proton direction. Proton will forever be the “Proton” culture period. Geely may use this opportunity to learn about the dominance of Japanese car makers in the ASIAN market and want to be in the ASIAN Hub.
W/o that “someone” to dictate terms, Geely will have more leeway to work within P1.
Kepada bos proton jgn duduk termenung lagi ambik actoin…apa yg org komplen tlg dgr jgn buat pekak badak berendam…jgn nak menyusahkan pekerja…pusat servis tak banyak kerenah baru la org confident nak pakai proton
Dan untuk kerajaan pulak memang hancur la…ap punca kereta luar masuk dgn senang…pergi la korea dgn jepun nak jumpa kereta lain pun susah…akai ads ka…akai kat duit aje nampaknya
Alamak, Geely? China brand mana ada standard? Partnerlah dengan mercedes ke. Ataupun your old rival, BMW ke. Ni partner with a company with lower standard with yours.
when geely wanna rebadge all the cars from current proton own… first .. throw out the campro engine first, ppl heard got campro sure mostly no buy , put geely engine of it and let us try the market ..
The current range of Proton cars will eventually be scrapped. There are so many Geely models which can be developed into Protons.