This is THE situation and THE only way out for Proton: Put in the business logic, minus the emotion.
To bring in a foreign partner, Proton has to give something – control of manufacturing and development operations in return for technology and for the greater number of cars produced – not just for the Malaysian market but the regional market as well.
Malaysian equity interests in the enlarged Proton will be smaller, but Proton will eventually become much larger and stronger. All the industries around it – distribution, parts manufacturing etc – will thrive too with the right foreign partner which will want Proton to succeed because it’s got a meaningful stake in it. [...]
At the end of the day, economics must dictate the final decision over Proton – not misplaced emotion and nationalistic fervour which tend to cloud the situation and be abused by other self-seeking parties to further their own narrow causes.
But really, why the Government seemingly reluctant to surrender control of Proton?
Is it due to the pride and dignity? Too trivial to be compared with the economical factor.
Fear of possible lay-offs at a Volkwagen-controlled Proton? Domestically, it’s not an uncharted path, Malaysia Airlines (MAS) has taken the unprecedented journey and yet, they survived.
After spending more than a year on the negotiation table without any conclusion, it’s time to be decisive on the partnering issue and starts working together for a strategy to turn the Proton from a wasteland into a breadbasket.
Meanwhile, Wall Street Journal (WSJ) has some staggering numbers for you taxpayers to digest:
- Proton’s market share slides from 60% at the start of decade to 32%
- Cash flow reduced from RM3 billion at year-end 2004 to an estimated RM500 million
- Proton burns RM300 million to RM500 million of cash a year
- Proton’s share price has dropped around 18%, compared with the broader market’s 24% rise.
Not sure about you, but I can feel the excitement of burning that amount of money at my pleasure.
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Proton is under government control mah… Means if no control no face la…
We all know what they should do. I think they know what they should do too. But are they willing to do that???
The leaders pander to the noise makers who champion the dubious issue of national pride (more specifically Malay pride). The focus on economics and economies of scale have long been blurred.
Proton is a failure company this is a fact. Do you know how corrupted they are.
When a company starts to have corruption practice it will always leads to down fall. Proton you deserve it.