Gov’t not interested in buying back Proton – Tun M

Gov’t not interested in buying back Proton – Tun M

Despite having previously voiced his objection towards the sale of a stake in Proton to Geely, prime minister Tun Dr Mahathir Mohamad said that the new federal government has no plans to buy back the national carmaker, according to a report by The Edge.

The 92-year-old premier said that control of the company no longer rests in the government, but rather in parent company DRB-Hicom and its largest shareholder, Tan Sri Syed Mokhtar Albukhary. “Proton does not belong to the government. It belongs to Tan Sri Syed Mokhtar Albukhary.

“It is up to him whether he wants to purchase [back the shares]. The government has no intention to buy back Proton,” Mahathir said. The man was an advisor to Proton before becoming its chairman in 2014, stepping down two years later as the company secured a RM1.5 billion soft loan from the government.

As part of the terms for the loan, DRB-Hicom agreed to sell 49.9% of its stake in Proton to Geely last year, after a year-long search for a foreign strategic partner. Mahathir decried the decision at the time, saying that Proton – which he described as his “child” – could “no longer be national” and its future successes are nothing to be proud of, as it does not “belong to me or my country.”

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • Semi-Value (Member) on May 23, 2018 at 4:59 pm

    time to reduce taxes also. reorgainze the whole car insurance industry to give protection to motorists (enough with the kena bang by lorry or motorcycle cannot claim and instead can be claimed by motorcyclists nonsense).

    Like or Dislike: Thumb up 48 Thumb down 0
    • tokmoh. on May 23, 2018 at 7:08 pm

      Yes please, heads must roll for all the nonsensical fraud we had to deal with. In MoT YB Anthony Lokewe trust.

      Like or Dislike: Thumb up 12 Thumb down 1
      • H-town on May 24, 2018 at 9:54 am

        Tok, whaddya take bout MAI & MIROS?

        Like or Dislike: Thumb up 4 Thumb down 0
        • tokmoh. on May 24, 2018 at 10:29 am

          MAI conlanfirm must shut down, Madani is proven to be an idiot and his head must roll.

          MIROS must shut down too, the staff can be absorbed into MoT, whereas overpaid directors can go balik kampung tanam jagung.

          Like or Dislike: Thumb up 24 Thumb down 1
          • Proton needs to shut down as well?

            Like or Dislike: Thumb up 1 Thumb down 1
          • tokmoh. on May 24, 2018 at 4:01 pm

            The govt doesn’t interfere with Proton.

            Proton will prosper and spread the glory and might of Geely Empire!

            Proton, Geely > all

            Like or Dislike: Thumb up 5 Thumb down 3
    • John Lingkup on May 24, 2018 at 10:02 am

      Close down and sell off factories to Perodua.

      Like or Dislike: Thumb up 3 Thumb down 6
      • Ambrose on May 24, 2018 at 10:08 am

        Proton plant to manufacture right-hand drive Geely, Volvo and some say, Lotus..

        Like or Dislike: Thumb up 11 Thumb down 0
  • Abang Alza Pakai Topi on May 23, 2018 at 5:01 pm

    Hidup Tun!!!

    Like or Dislike: Thumb up 25 Thumb down 1
    • Jimmy on May 23, 2018 at 9:10 pm

      Once again, I am right. A few years ago, I said only Dr M can save us.

      I hope our new minister of education can be as good as Tun.

      Like or Dislike: Thumb up 15 Thumb down 1
      • kurasaaan on May 26, 2018 at 12:12 am

        whtever the person of new education minister perhaps a lottttttttttt better that u.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Amriji on May 23, 2018 at 5:06 pm

    Bailout RM7Bil 1MDB + RM1.8Bil P1. Rakyat had enough!
    Support TunM wise + courageous.

    Like or Dislike: Thumb up 26 Thumb down 2
    • YB Albert on May 23, 2018 at 8:44 pm

      I think Geely will pull out sometime next year,if things stagnate with all the internal politiking by reluctant staff to relocate and mogok mentality of the vendors.
      By Christmas,Protong will hardly hit 55000 units sales,while waiting for Boyue to debut .
      So Syed Mokhtar has to swallow (with geely) another massive loss of Rm500juta easily.
      Every month,proton’s sales has been canabalised by perodua ,Nissan ,Honda and toyota.How long can this go on,Dr.Li chun Rong,if u r reading my comments.
      Volvo acquisition is different.The politics here is too overwhelming.
      In the final analysis,the massive winner is still blockbuster Perodua.

      Like or Dislike: Thumb up 5 Thumb down 4
      • Not Toyota Fan on May 24, 2018 at 1:04 pm

        Things are slow because Geely has zero experience in converting from LHD to RHD. Surprisingly, Proton has experience in conversion from RHD to LHD (the Wira was exported to LHD markets in Middle East).

        They (Proton & Geely) have to set up future SOP, supply chain, QC standards but also ensure the vehicle meet regulatory requirements. Then set up the supply chain for RHD parts & at the same time meet AFTA local content requirements to qualify for the intra ASEAN tax rebate. Then test run the assembly line, train the staff, meet Geely QC requirements, go back to fine tune the entire process before even the first car reaches the show room. Add to that the Marketing, promotion & PR programs for the new launch. Bear in mind they recently hired some very experienced & senior sales & marketing people from H, N, T & Sime Darby H. This alone will bring Proton sales & marketing into the 21st century.

        Yes, I agree something will happen next year. Launch new B segment SUV (SX1). Don’t think they will challenge P2 on the A segment, just concentrate on the growing SUV market first. Not even sure if the Preve replacement will arrive as assembly line for 2 new products will be enough headache to get right.

        1-3Q of 2018 will be a write off. Only Q4 will show some positive sales results & with the additional CAPEX required for the production & launch of Boyue, it’ll be another accounting red year again. 2019 be lucky to break even. But if Proton can prove to the buying public that Geely cars are value for money matched by good after sales service, then maybe, just maybe, Proton will be forgiven.

        Like or Dislike: Thumb up 4 Thumb down 0
  • Luckily!

    Like or Dislike: Thumb up 3 Thumb down 0
  • Not Toyota Fan on May 23, 2018 at 5:28 pm

    Let DRB Hicom & Geely run Proton. Dr Li already has a 10 year plan in place. Let the current management do their job without political interference.

    But be forewarned. Geely sold off it’s gearbox subsidiary (Australian) DSI after 5 years for reasons unknown. I believe if Proton fails to show results within 5 years, Geely may take this drastic action.

    Like or Dislike: Thumb up 18 Thumb down 1
  • bernie on May 23, 2018 at 6:08 pm

    awaiting “john” comment, “P1 will be great again under TunM” *eye roll*

    Like or Dislike: Thumb up 11 Thumb down 1
    • P1 sink with.
      https://paultan.org/2018/02/05/proton-will-not-be-allowed-to-sink-najib-tun-razak/

      Like or Dislike: Thumb up 8 Thumb down 0
  • THANK YOU very much 101%…Prime minister Tun Dr Mahathir Mohamad for no plans to buy back the national carmaker…thank you!

    Like or Dislike: Thumb up 31 Thumb down 1
  • tokmoh. on May 23, 2018 at 7:07 pm

    Hidup tun! The might of Geely empire cannot be stopped, and tun knows it!

    Proton, Geely > all

    Like or Dislike: Thumb up 3 Thumb down 2
  • rchoo on May 23, 2018 at 7:16 pm

    As much as I respect Tun, still my honest believe and experience “GOVERNMENT SHOULD HAVE NO PART IN BUSINESS”

    Like or Dislike: Thumb up 3 Thumb down 0
  • Ahmad on May 23, 2018 at 8:28 pm

    Proton fan keciwa! No boyue!

    Like or Dislike: Thumb up 2 Thumb down 2
  • Dylan Ch'ng on May 23, 2018 at 9:33 pm

    maybe proton would loose lower tax rates since no more a nation car

    Like or Dislike: Thumb up 0 Thumb down 0
  • I believe this is a great decision. I hope that Proton under Geely’s hand will drastically improve the quality of the products in the future.

    Proton under the hands of a proper company, who is trying to make a profit, will do better then Proton’s days under goverment protection, who in the past relied in goverment bailouts for missed profits.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Ahmad on May 24, 2018 at 8:43 am

    Sale shares for rm120m, bailout rm1b.. Proton formula..

    Like or Dislike: Thumb up 1 Thumb down 0
  • Hans Z on May 24, 2018 at 8:58 am

    Its time to make Proton competitive against others. By reducing import tax.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Baguslah..masa kerajaan pegang pun tak bagus mana keretanya

    Like or Dislike: Thumb up 3 Thumb down 0
  • Ben Yap on May 24, 2018 at 10:59 am

    don’t buy back proton means proton will be a china car?

    Like or Dislike: Thumb up 1 Thumb down 1
  • sam123 on May 24, 2018 at 11:09 am

    How about MAI ?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Exactly! Dont Buy Proton. on May 24, 2018 at 12:42 pm

    It’s good decision for Tun M not to buy out proton. People also should not buy protons cars at all. It’s no more national car brand. Based on experience owning a brand new proton car recently has proved its poor quality, substandard performance right after driving out of the showroom. Next, your life starts turn miserable dealing with proton. Avoid proton while you can. Want save your precious time and money, just pick up other brands. .

    Like or Dislike: Thumb up 2 Thumb down 5
  • Yes, save the country first~!

    Like or Dislike: Thumb up 0 Thumb down 0
  • malaysia car on May 25, 2018 at 9:14 am

    i think we can set up at new malaysian car by using aisin gearbox, toyota engine and daihatsu body.
    for the van, can rebadge UAZ-452 for pasar malam user or campervan lover…

    Like or Dislike: Thumb up 1 Thumb down 0
  • Same L0rr on May 25, 2018 at 11:07 pm

    Too bad! Tun M also dont want Proton!

    Like or Dislike: Thumb up 0 Thumb down 0
 

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