The news of the government's decision that Proton do not need a foreign partner caused Proton's share price to drop 18.6% yesterday.The reason given by Khazanah Holding Bhd, Proton's major shareholder and the investment arm of the government was because Proton's sales and export had improved.
On Proton's turnaround, Second Finance Minister Tan Sri Nor Mohamed Yakcop said there is no specific timeframe given to the management of Proton Holdings Bhd to turn the national carmaker around. It must mean, Proton could take their time and the government is willing to "subsidise" their losses to keep it afloat.
"There is a business turnaround plan. They have not yet submitted to us a comprehensive programme about their plan to turn the company around but there is one," Nor Mohamed Yakcop said.
"Give Proton a chance" Prime Minister Pak Lah said. Proton is doing well and should be given a second chance to turn around like Malaysia Airlines, said Datuk Seri Abdullah Ahmad Badawi.The Prime Minister said the question of a bailout did not arise as the management of the national car-maker had proven that its turnaround programmes were successful.
“Proton is doing very well today. It has secured agreements to export its cars to China, India, Indonesia and some countries in the Middle East and it is coming out with new models.
“I think Proton has been successful and the Government has asked that Proton should have its turnaround similar to MAS’.
Doesn't the two statement contradicts? PM said Proton turnaround had been successful and Proton is doing well. Nor Mohamed Yakcop said there is no time frame for the management of Proton to turn around. If Nor Mohamed said "there is no time frame for Proton to turnaround" it must mean they haven't yet turnaround back to health; they are still in the red. If PM's word is to be understood, it must mean Proton had already put its financial position back to profitability and had erased it's cumulative losses.
So, which is which? Isn't it confusing? Do we have problem with our English? Is turning around means back to health, that is, recovered the losses and the balance sheet is now back to profitability? Or, is it profitable for the first quarter of the fiscal year but still in the "red" in the balance sheet? The PM is the Finance Minister and Nor Mohamed is the 2nd Finance Minister; but both don't speak the same financial language... but they are both finance ministers???
10 comments:
No sane motorcar manufacturer would invest in Proton.
The company is a disaster, all the word manipulation in the world will not change things.
A silk purse cannot be made out of a pigs ear!
Brace yourselves taxpayers, more of your money is heading down the drain.
proton survives by killing malaysians... and by unknowingly killing themselves.
The teacher-for-all-people-wannabe prime minister again talking nonsense.
He is just TOO old to think anything viable than bullshitting.
International automobile business is about niche or cost-quality. If you can't make a niche machine, you must check the cost factor; the best company will take both.
And for proton, the biggest problem are cost. Today, all top automobile manufacturer has invest a HUGE on SCM - Supply Chain management. The cost, quality,availability of a parts can be trace almost instantly, and the complexity also including multiples location and multiples suppliers for particular parts.
The bad news is, like Malaysia government, Proton suffered by the EXACT crony,corruptions syndrome : the immediate benefiter try to delay those tracking and monitoring project as late as possible.
IMHO, Proton are HOPELESS.
Agree with moo_t that Supply Chain Mgmt is the key to the auto industry survival.
Another vital component is market penetration (and I don't mean Malaysia). To be viable, Proton needs to make sufficient headway into major car markets - not Egypt or Middle East. If they are talking about India and China, what is the market share ? Selling 10,000 units a year in a million unit market is pathetic.
The statement by the 1st Finance Minister is sleep-talk whilst the 2nd Finance Minister is time-frame-less.
Nothing contradictory really. It's a matter of semantics. Both are not meant to be taken seriously.
Mave, you should go back to school for England lessons. lol ;-)
With the Cabinet's decision, Proton will never gain the trust of any other foreign company again. When Proton gets in trouble and tries to seek another foreign partner, it will end up rotting in its losses.
proton : turn around?
seem more like been push around & kick around...
[Imaginary conversation between VW n Proton...but may not be far away from the truth]
proton (gahmeh) : Please sir, can you help?
VW : So you need me to save your company? But surely this tie up should benefit VW as well.
proton (gahmeh) : can can...anything can. name your terms.
VW : We need to take management control of your company.
proton (mgt) : !! (my rice bowl gone lor..)
proton (gahmeh) : sensitive la...err...50-50 can ar?
VW : take a hike!
proton (gahmen): eh...fren, dont like that la...tak aci la. come come, have some drink on us...anything also can solve wan.
VW : up to you, but you know our stand.
(few mths later...)
proton (gahmeh) : OK! we've decided to terminate the talk with VW. Proton now very good prospect. YOU all remember this, WE are the one terminating the talk, VW did not back away. screw them *thumping table*.
How la to do business with these ppl? When they want things, sweet talk all the way, when they have a bit of advantage, WAH...no give face also. straight away brush them aside...and somemore say VW did not back off, it is Proton that terminates the talk. These niamahs will do anything to hoodwink the investors...but hehe...share still tumble la...
Feel sorry for VW kena brush off like that...but ha VW, please la...dont have hard feelings towards Proton. small kid only. donno the right way...that's why every way they turn also they make enemy in the industry...*sigh*...
But har, knowing gahmeh style...they may have promised VW other things la, in the future. sort of like, eh! you let me brush you off now to save my face, next time i let you do me from behind la. somemore free!
one flop his statistics and the other lost billions ( read my lips this is rakyats money) playing the currency market. hobson's choice, no?
I can bullshit better than all these moron put together. And I dont even have a degree.
That should say a lot for the state of country. A country run by idiots that can't even BS well enough.
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