Proton MPV? Inova?

Proton MPV has arrived!




It may be available by April 2009.

Price? Maybe below RM90,000.00



Value for money. Let's wait for more news and comments from the journalists who had test drive.

Sunday Picture News

There are suggestions from Umno circles that ACA should come under the direct control of Umno executive committee to make the agency more effective and efficient and thus ensure the rights and special privileges under Article 153 is protected and made sacred.

QUOTE OF THE DAY

"The perceived threats to Malay special rights and the sanctity of Islam is an imaginary perception concocted by Umno and its supporters to reaffirm their hold on the communal-based politics in the country."

If the party, at this crucial juncture, cannot fathom the real causes of its lost of popularity and accept that the BN coalition is now near defunct, it should not be trusted fully to run this country with the hope of providing a brighter future for all Malaysians.

If the lack of support of Malay voters for Umno and its coalition parties is seen as a sign of Malay disunity, then shouldn't the self-proclaimed wira-wira bangsa (communal champions) in Umno evaluate what were the main causes?

Three words can sum up the main causes - arrogance, ineptness and inefficiency.

In short, the Malay voters were not misguided and influenced to ditch Umno. They did so because there were evidences of poor leadership, political arrogance, power abuse, corruption, nepotism and inept governance. These make up a powerful cocktail can even knock out an elephant.

It is time for Umno leaders to sober up. They must take cognisance of the importance of promoting true inter-ethnic harmony, good governance, prudent socio-economic management and a progressive democracy to stay relevant and become powerful again.

Fixation over ethno-nationalism to fire up communal fervour, hoping to turn this negative energy into political support will eat away whatever goodwill left with the party and the BN coalition.

- Khoo Kay Peng

Is there Malay disunity?

Malaysiakini.com

***

Proton's dilemma with Perdana

The Terengganu state government will produce detailed proof of the service cost and maintenance of the Proton Perdana V6 Executive cars that it had used as the state's official cars.

This is to justify the Terengganu government's purchase of 14 Mercedes Benz (E200 Kompressors) cars, worth RM3.43 million, to replace the Perdana cars for use by the state executive councillors and senior state government officers.

Defending its decision, the menteri besar's office, in a press statement said that the maintenance cost had been high since the Perdana cars were put into use four years ago.

The statement said the maintenance cost of just two of the cars since 2004 had come up to RM175,229 and RM132,357.

On Monday, Najib said all senior ministry officials and state government executive councillors must use national cars instead of foreign models. This, he added was a long standing policy.


(Source: NST: Why 14 Mercs are needed)

Maintenance cost for a Perdana V6 for 4 years is RM175,000? That's damn high and excessive!

Is Perdana that bad quality? or are the drivers? or something else that we don't know?

The Perdana V6 Club has come to the defence of the Proton Perdana, saying that it is a good car.

V-Sixers secretary Mohd Yazmeen Md Yusof said he was disappointed with what Terengganu Mentri Besar Datuk Ahmad Said had said about the car.

“If they think it is difficult to maintain, then how can private Perdana owners survive? How could clubs for the car be formed if it really was that bad?”

Mohd Yazmeen said the frequency in which the car had to be sent to the workshop for major repairs depended on the way it was driven.

“My eight-year-old car still has the original gearbox and engine with a mileage of 200,000km. There is no need to change anything if it is maintained well.”

Automotive blogger Paul Tan said maintenance cost should not be a problem as Proton cars are under warranty for the first four years. If this is true, the Terengganu V6 is only 4 years and why did they pay hundreds of thousands for repair and maintenance?

V-Sixers president Alex Yue said the Perdana was a decent car, which should not pose any problems if driven properly.

Alex Yue admitted he had changed his gearbox and drive shaft of his four-year-old car, but he said his “aggressive” driving style was the cause of his car’s problems.

“I have also driven a BMW 325 and a Honda Accord, and both had gearbox problems,” Alex Yue said.

(Source: Club defends the Perdana)

I have never own any Perdana and thus had no such experience to relate. I had own a Saga and a Wira and I can say that Saga is reliable except that it is fragile and had poor road holding if you drive 110kph.

But I owned a BMW and had never had problem with the gearbox or engine. I once owned an Accord and it also had no such problems with the gearbox.

But one thing is very certain and empirical: when I get to the toll booth, I often observed that those who drives Proton cars will open the door to pay the toll or swipe the Smartcard. I have yet to see other makes of cars doing the same thing. Maybe, it is a cultural aspects of Proton owners to do it that way as a gesture or a symbol of harmony.

Proton's needs, NEP's Dilemma

Proton Holdings Bhd needs a foreign partnership to be more competitive in the automotive market, said Minister of International Trade and Industry Tan Sri Muhyiddin Yassin.

"I still believe that this (foreign partnership) is an idea which Proton has to explore.

"I don't think that we need to be too nationalistic in the sense of supporting Proton without taking into consideration what the business is all about," Muhyiddin said.

Source: 'Proton needs foreign partner'

OMG! This is going to be hurtful! This strikes the very ego of the central system - it is the ketuanan thing; Proton is part of the core concept and any loss of control will crack the central ego; it will also diminish the Bumi percentum and directly affects the aspiration of achieving the artificial illusory 30%. They themselves keep doing things that impair and ultimately diminish the 30% and then later blames every others for their inability to get there. How could they do this? What if, other than Proton, there are in reality more of such organs that are also facing such competitive dilemmas and may have also to consider the dilutions and diminution of control? Wouldn't that defeat the fundamental concepts?

Proton: Agustarded or Bagustarded?

In December 2004, Proton advisor and former Prime Minister Mahathir and the then CEO of Proton Tengku Mahaleel decided to buy MV Agusta for RM367.6 million, which represents a 57.75% stake: thus a controlling stake of an Italian motorcycle manufacturer.

Mahathir had always wanted to proved to the Mat Sallehs that we Malaysian Boleh: we are a small developing country who has big heart and big minds; Malaysia may be a small country but it can conquer the capitalist world.

Tengku Mahaleel said at that time that the purchase, similar with its acquisition of Lotus Group International, gave the group the engineering capability to develop a full range of transport products from motorcycles and watercraft to light aircraft and military vehicles.

However, in July 2005 Tengku Mahaleel was ousted as the CEO of Proton.

Khazanah Nasional Bhd, the government investment agency, which owns 42.7% of Proton, through the Proton board, exercised their most important prerogative as an owner – the right to hire and fire; and out goes Tengku Mahaleel.

On November 30, 2005, Proton Chairman Mohammed Azlan Hashim announced the appointment of Perodua Auto Corp executive director Syed Zainal Abidin Syed Mohd Tahir, then 43, as its new managing director.

In December 2005, Proton Holdings announced that it has sold its 57.7% stake in MV Agusta SpA for one Euro (RM4.48) to Gevi SpA, an unknown, smallish investment holding company.

Gevi was to assume Agusta’s “restructured frozen debts”, which amounted to 106.9mil euro (RM478mil) which was the supposedly the reason why Proton decided to sell Agusta.

Mahaleel and Proton advisor Mahathir strongly criticized the Agusta sale and demanded information on why it went ahead, saying their credibility is at stake over the deal.

Proton Chairman Mohammed Azlan Hashim claimed that Agusta failed to deliver the synergies expected.

"It took five months to come to that point and we hired external consultants and lawyers and, looked at the possibility of restructuring Agusta but found out it was not a solution," said Azlan Hashim.

The group exco at that time, which was formed to take over the daily running of Proton after former CEO Tengku Mahaleel left, decided that a detailed review was needed and Credit Suisse First Boston (CSFB), along with an Italian law firm, were hired to advise Proton on how to move forward.

CSFB had then done its review of Agusta and what it found was “scary” as it found that the existing business model of Agusta was neither operationally nor financially sustainable.

Proton was told by its newly appointed adviser CSFB that for Agusta to continue surviving, it needed 40 million euros in the near term and up to 66 million euros until Agusta is able to support itself. “This is clearly beyond Proton's means,'' said Azlan.

Another problem the Proton board had to deal with was how to turn around Agusta operationally as the company had lost 120 million euros in the last six years.

Azlan said the only option then left for Proton to extricate itself from Agusta without spending more cash was to sell its stake in Agusta.

The Proton board then asked CSFB to find a buyer before the end of December 2005 so that Proton would not have to pay the 16mil euros debt payment and pour in further funds into Agusta.

Mahathir was extremely upset with Agusta's sales: "The sale of MV Agusta for one euro was based on poor understanding of the automotive industry," Tun Dr Mahathir Mohamad said.

“I cannot understand their decision to sell," Mahathir said.

"But if you know the automotive industry, you would know that motorcycle companies have a lot of engineering knowledge. That is why Honda has a 50cc motorcycle. Today you know that Honda is associated with some of the best cars in the world. So, it is possible for motorcycle companies to contribute towards the development of motor cars.”

Dr Mahathir, who is the advisor of Proton, said the decision had led to the Proton board losing the RM500 million paid for the stake in MV Agusta.

Prime Minister Abdullah Ahmad Badawi defended Proton's decision to sell Agusta at one Euro. "THE E1 (RM4.48) price tag on MV Agusta E Motors SpA was not a result of an error in management," Abdullah said.

Abdullah said that the sale to GEVI SpA from Italy was necessary to allow Proton Holdings Bhd to concentrate on its core business of car manufacture and sale.

The decision to sell Agusta to GEVI SpA was considered necessary because GEVI SpA had good financial standing, allowing it to take over Agusta together with Proton’s debts for the sum of E1. "The decision on the sale by the Proton management was the best choice in the interests of company operations and business," Abdullah said.

Gevi SpA subsequently sold part of its stakes to BMW. BMW Motorrad acquired Husqvarna Motorcycles, which is owned by Agusta, for 90 million euro (RM450 million).

Now we are informed that Harley Davidson Inc has agreed to purchase MV Agusta for US$109 million (RM352 million).

That's a total of RM802 million! Proton sold Agusta for RM4.48 and Gevi sold Agusta for RM802 million! That's truly Malaysia Boleh - the suckered!

Anyway, we must learn to appreciate the Proton board of directors; they had done a good and exceptional job!

And this is the questions Mahathir posed today in his blog:

"Do we need a royal commission to look into this or should the ACA investigate this matter particularly the role of Credit Suisse who was paid a huge consultancy fee to advise Proton's management who executed it.

"Or maybe we do not mind losing RM800 million because we have so much money."

(Source: chedet.com/)

Mahaleel said that the purchase of Agusta’s Husqvarna-brand and its factory by German luxury automobile giant BMW last month was proof that the ‘old’ Proton management had made the right choice.

Mahaleel said nothing had been done to increase the value of Agusta since Proton sold its stake as there were "no sales increase, no new products nor new patents".

“Put it simply, it was worse off when it was sold to BMW and yet they paid 93 million euros... (the present Proton management) on the other hand, we sold the whole thing - three factories, three brands - for just one euro,” lamented Mahaleel today.

(Source: Malaysiakini)

Cheers to Khazanah under the leadership of Azman Mokhtar; cheers to Proton's Mohd Azlan Hashim and Syed Zainal; Cheers to Malaysia's PM Pak Lah; cheers to Malaysians.

We are the world, we are the people, we are a nation of intelligent CEOs!


Further References:

TheStar: Proton chief tells all in controversial Agusta sales

New MD for loss-making Proton

NST: PM: Sale of Agusta the best choice

Malaysiakini: PM: Why we sold MV Agusta for RM5

Malaysiakini: Proton lifts the lid on MV Agusta purchase

Malaysiakini: Agusta sale: 'Proton's loss, BMW's gain'

BMW Motorrad Acquires Husqvarna Motorcycles

www.mvagusta.net

How about Lotus for £1

TheStar: Proton divest impaired asset

Muhyiddin: APs to be retained

Minister of International Trade and Industry Muhyiddin Yassin today surprised everyone when he said that the government was retaining the Approved Permits (AP) policy for the next ten to eleven years.

His ministry was now backtracking on the promise the prime minister's department made in 2006, when they announced the policy would end in 2010.

"A decision has been made and we are not changing it," said Muhyiddin. The decision to keep the AP, Muhyiddin said, was made to prepare present traders for a time when there were no more APs.

"So that they would be able to stand on their own without relying on APs anymore," he added.

"Ten to eleven years down the line, whoever wants to import (any vehicles) they have the liberty to do that," he said, noting that the companies who have got the permits before the removal would have a strong base by then.

APs are only issued to Bumiputera businesses.

So far, 148 cars and motorbikes companies have been issued with APs.

Source: Muhyiddin: APs to be retained

I have no qualms about the APs; only 148 families enjoy this benefits out of possibly 7 million families in Malaysia.

The APs privileges as part of the ketuanan thing had promoted the aggressive imports of cars which runs counter to the pretension policy of protecting Proton, another Malaysia Boleh conceptualization and also a ketuanan conceptualization; and ironically, both being conceptualized by the great sage, Mahathir himself, of which he later landed disparaged in the Mahaleel saga.

Proton Water-savvy

Proton recalls Savvy to check wheel bearing problem

Proton is recalling its Savvy cars to address the possibility of water entry into the rear wheel bearing which could lead to a malfunction.

“The safety and satisfaction of our customers is a primary concern. As a precautionary measure, we are recalling all Savvy’s for inspection and repair.

We do apologise to all Savvy owners for any inconvenience,” managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said in a statement here today.

The recall will affect 34,000 Savvy cars and Proton will conduct the necessary checks and replacements at no cost to the customer.

Proton said all Savvy owners are advised to take their cars to the nearest Proton Edar or EON service branches for an inspection.

“This recall is purely a precautionary measure as the convenience and safety of customers is Proton’s highest priority,” Proton said.

Proton Turnaround or TurnDown?

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???

PM: Agusta sale can't be verified.

I love this piece of moronism:

Pak Lah said: GEVI sold Agusta for E93 million are rumours and could not be substantiated.

"Proton has investigated such claims through public sources and found that such information cannot be verified.

"The issue of a business management error, therefore, should not arise," he said.

What a crap? The sale of part of Agusta by GEVI to BMW was a public document and acknowledged by BMW, the buyer of the stake. How can it be that the sales cannot be verified and substantiated? Are we saying that the Prime Minister and his coterie of experts and professionals do not have access to internet and do not read the announcement made by BMW?

It made me a monkey when foreigners asked me about this statement of ignorance made by the PM.

Persona-ed

BayiSingh reports from Kuching:

This is the latest new Proton Persona.
It supposed to have one fuel gauge and one temperature gauge.
This unit has 2 fuel gauges.
It was found in the launching car somewhere in Kuching.
No wonder big boss mad like @#$#.

Big News! Big News!!!

Congratulations to Proton!

Congratulations to Syed Zainal Abidin, the MD of Proton Holding.

The new Proton Persona received more than 500 bookings on the launch. Total sales order since July is now over 2,700 units.

That's a good figure, Proton, and what a delight to shareholders...

But please also tell us whether it has increased Proton market shares or whether those potential purchasers are selling off their Waja and Wira in exchange for the new Persona. Please also indicate how many of the bookings come from the employees of Proton group of companies and taxi companies. I was told the airport taxi-limousine service concessionaire had also placed a substantial order to upgrade its fleet of vehicles because Proton is giving him a good deal.

Would this Persona increase the market share of Proton and translate the results to the bottom-line? Syed Zainal, over to you. Anyway, congratulations to you based on the news.

Proton Tragedy Untold

Received these pictures from an email. It was purported to be an incident that happened in Proton factory at Shah Alam. I do not know when it happened.

Did anyone happened to read about this anywhere?

Survey: Proton only 2nd to Lexus

In January 2006, newly-appointed managing director Syed Zainal Abidin Syed Mohamed Tahir announced that he had put in place several initiatives that will help the Proton to be cost effective, producing high quality products and that he expects that by the end of 2006, Proton will be turnaround and are back to profitability.

Syed Zainal said he believes he will be able to deliver what is expected of him. Going forward, he said Proton would be phasing out its Wira and Iswara models, but he did not say when.

Syed Zainal also announced that Proton will also revisit its plans to penetrate the China market and it will no longer ignore the Indian market. These two markets offer huge growth potential. Since taking the helm, Syed Zainal said he has been busy looking into how to improve the systems and processes at Proton as well as quality and costs.

When Proton rolled out the Waja Campro and Satria Neo models in 2006, there was so much excitement and self-confidence.

The management believed that Proton had finally found the answer for their dismal performance and that they now have the right products that would help them win back all the customers, and they are now ready to prove that they can now return the company back to profitability and growth.

That excitement and self-confidence led the management to declare their KPIs for 2007:

Proton FY 2007 KPI

Market Share 45.8% (FY06: 41.4%)
Export Sales 8.6% (FY: 5.2%)
Revenue Growth 12.4%
EBIT Growth 2.5% (FY06: 0.5%)

However, on 1st June 2007, Proton announced that they had suffered RM591mil losses, revenue had dropped from RM9 billion in 2003. RM7.8b in FY06 to RM4.9 billion for FY07 and car sales was down by 40%. Revenue to not grow by 12.4% as predicted; instead, it shrunk 40%.

Loss per share stood at 107.7sen compared with earnings per hare of 8.4 sen in FY06. Market share dropped drastically instead of growing by 5% as projected.

During the full year, Proton only managed to sell 110,358 cars, which was a 40% drop from 183,824 units sold in FY06. Proton blamed stringent loan application screening and credit squeeze for their dismal performance.

MD Datuk Syed Zainal Abidin Syed Mohamed Tahir said they will focus on operational efficiency, cost competitiveness, introduction of new models and more aggressive marketing campaign to mitigate.

Today, NST reported that Proton is vrooming again as they had found the answer - the latest Sedan.

Enthusiasm and gushing reviews by industry insiders seems to indicate a turning point for Proton.

They declared: Proton is bringing back smiles to the faces...

Managing Director Syed Zainal sai he is pleased with the outcome.

He is positive and confident again that the sedan will take the market by storm. (Remarks: If the sedan is this one on the left, I too am confident; but it's not, my dear!)


PEDA president Wan Ahmad said this sedan is the best car ever made by Protonand looks stunning and spectacular.

"The new car herald a new era for Proton," Wan Ahmad said.

Syed Zainal said Proton had reduced their cost of spare parts and are now cost competitive. On the international front, they expects to sell 30,000 cars to China. It was also reported that Proton had also penetrated the Indonesian market.


In the UK, their dealers were said to have scored great results in a survey undertaken by a Magazine but don't know which Magazine.

It was reported that in the survey over 93,360 car owners, Proton beat Honda Toyota, BMW and Kia and only lost to Lexus.

"Proton is now well known when it comes to quality", it was reported in the survey.

Congratulations to Proton! Malaysia finally BOLEH!!!

GLCs KPI: Dreams or Nightmares?

In 2006, Prime Minister Pak Lah wants all GLCs to have their KPI.

Khazanah under the new CEO Azman Mokhtar announced a set of reasonably impressive KPI which must have extremely motivated the Prime Minister and his coterie of CEOs.

In January 2006, the new CEO of Proton Syed Zainal Abidin proclaimed that Proton would surely be turned around in ONE YEAR!. He was so confident and sure of his ability to turnaround the cancer-struck corporation.

By March 2006, Proton par laid their strategic mission and goals and issue to the public a set of the Key Performance Indices (KPI) targeted for the year.

Market share is projected to increase to 45.8% from 41.4% of 2006

Export sales will be increased to 8.6% from from 5.2% in 2006

Revenue will grow by 12.4% for FY 2007

EBIT growth will be 2.5% against 0.5% in 2006

This projections are not extremely delightful but are satisfying if it is achieved.


Finally, the Fiscal Year Performance results were out.

Revenue drop by 29%, Car sales drop 40%, EBIT goes negative, export sales was also negative growth.




Today, Khazanah announced a new set of KPI for Proton FY2008.

It's ok if it is not achievable; afterall its mere figures and was also meant to be a target to motivate ... motivate the Prime Minister only.

The message is clear, just try lah!

Kalah tak apa, gaya mesti mau!

Anyway, congratulations to Azman Mokhtar for receiving his new title Tan Sri.

Hi PM, are you ok?

\

Be patient! They are trying very hard.

Proton achieve better sales

Congratulations to Proton for achieving a better sales than previous month.

Proton sales had pick up after dismal results over the past few years.

The pick-up in sales volume was help by fleet owners.

However, the financial year ending Sept 30, 2006 recorded a drop in sales to RM1.3b from RM1.8b recorded last year. In 2004, it was more than RM2.4b. in 2007, it is predicted to be less than b.

However, export is down to almost nil as Proton is only interested in domestic market.

4 Letters Reveal All the Truth?

I read with great propensity and perplexities on the news in NST and The Star today pertaining to the Four-Letters of correspondences between Mahathir and Singapore Goh.

What puzzles me is: Did the govt clear the air or pump pollutants into the air space to shroud it? What's the purpose of revealing these 4-letters? What was this that relates to Mahahir's request for answers? Do they understand the main issue that are being debated? What was the critical issues raised by Mahathir? What would be the Cause-and-Effect and negative consequences hereof?

Firstly, the center-point of the issue is Mahathir's tirade and dissatisfaction over several key areas, namely, the calling-off of Cynic Bridge, the agreement for sale of mammoth supply of sand to Singapore, Malaysian Territorial and Sovereign rights to do projects within it's boundary, the new agreement in principle for the use of space, the retardation of Putrajaya's development plan, the cancellation of Double-track railway project, the sacking of Mahaleel and the disposal of Agusta at $4 Ringgit.

Did these 4-Letters reveal anything to counter Mahathir's point of contention (PoC)?

I am baffled at the headline in The Star which proclaims: Four Letters Shed Light on Issues. Did it shed any light for which we had not yet known. In fact these points were highlighted by Mahathir in his contention and nothing new was shed,; there was no light at all; in fact, it's more of a smokescreen.

What would have shed light, is the fact that should answer this question:

"Since Mahathir left office, what are the correspondences and new terms agreed or discussed between Malaysia and Singapore which relates to Mahathir's PoC? What are the things which were agreed that were contrary to Mahathir's PoC?

Nothing was mention or revealed about the sale of sand agreement and the discussions regarding the use of airspace.

Furthermore, on the termination of the Package Deal, Goh Chok Tong merely said that the package approach and trade-offs are no longer possible and that since the package deal is off, Singapore Officials are instructed to deal with water and the other issues individually and separately on their stand-alone merits. It doesn't say the Singapore Govt did not agree with the Proposed Crooked Bridge or possibly, a Straight-Bridge? It didn't say that the proposed knockdown of the causeway by Singapore after 2007 is not acceptable. It merely say that each issue will be dealt with separately and individually, based on it's own merit (i.e the mutual benefits philosophy will apply).

So, what was revealed? Only Mahathir's side of correspondence with Singapore's written reply. Why is it that Pak Lah's govt and the Foreign Minister Hamid Albar are not prepared to reveal their roles, their negotations and their contributions towards the resolution with Singapore? Is there something hidden and unspoken? Did Mahathir knows something that is esoteric and in fact had proof of them? Will he open up the Pandora Box?

Equally baffled was the speech by Mohd Ali Rustam that Efforts to explain issues well received. Ali Rustam said he is confident that the ongoing efforts to explain current political issues have been well received by the grassroots. As a prelude to the Mahathir's talk in Kelantan which is unresolved, UMNO had organized more than 1,000 branch members from Pengkalan Chepa and Pasir Mas divisions to show support and loyalty by reading out a pledge of support for Abdullah. The show of support comes ahead of talk that Dr Mahathir would visit Kelantan on July 28. Pre-emptive strikes??? What are they afraid of? I don't know!

Mahathir, being an astute warrior and political strategist himself, he surely knows how to deal in the current situation. When he is back, there will be more, far more insidious revelation. Sun Tze art of war and Machiavelli's Prince may be far too simplistic and basic to Mahathir, for if, he can dump 3 deputies (without a sneeze), thwart a fiery challenge by Tengku Razaleigh to his throne (which effectively emasculated him), and deals with the East Asian Economic Crisis, he is truly a warrior in the mould of Sultan Süleyman and Genghis Khan.

Wait for another few days, for "He Shall Return" and strike again at the imbecile.

Lotus for 1 Pound?

Former Proton boss Tengku Mahaleel asks Proton Chairman: How about selling Lotus for £1?

Tengku Mahaleel, the former chief executive officer, said that since Proton has now set a precedent by selling a Malaysian-owned foreign firm for a token amount with the disposal of MV Agusta SpA, "we (he and Mahathir) would like to publicly register our interest to acquire (Lotus) for £1, if and when it is up for sale."

He added that they would also like to table a bid even if Proton considers selling Lotus for more than £1.

Tengku Mahaleel said he and Dr Mahathir were disappointed that Proton had not responded to their queries after MV Agusta was sold to GEVI SpA for E1 (RM4.42).

"It took us 14 months to decide and complete the acquisition of MV Agusta, and they got rid of it in two-odd months.“ "Why were there no consultants hired to thrash out the decision?"

He stressed that the MV Agusta management neither had an opportunity to state their case nor were they included in the meetings to decide the company’s fate. He claimed Proton had also refused an offer from MV Agusta chairman and shareholder Claudio Castiglioni to buy it for E1 and assume its liabilities in order to save it.

Tengku Mahaleel dismissed the notion that MV Agusta was not a profitable venture, saying that it could be a money-spinner for Proton in the medium term. He noted that the firm was expected to make a pre-tax profit of E50 million in 2010, based on a PriceWaterhouseCoopers forecast. "With the changing Malaysian auto policy, Proton’s future cash flow will not be sustainable as its domestic market share falls below 30 per cent. Therefore, the combination of Lotus and MV Agusta is crucial for Proton’s future."

Another round of mudslinging from the two Ms. Brace for more!!!!

Proton's & The Agusta Juxtaposition

The two key person behind the fatal acquisition of Agusta SpA, Proton adviser Mahathir Mohamad and the former maverick CEO of Proton, Mahaleel (also called the 2Ms of Proton) questioned the rationale behind Proton's sale of MV Agusta Motors S.p.A. for one Euro (RM4.50).

In a joint statement released here, they also raised several insinuating questions regarding the Euro$1.00 disposal by Proton. The disposal might have caused Proton some RM510 million losses which appears in Proton’s 2005 annual report cash flow statement. It include the acquisition price of 70 million euros or RM367.68 million and further RM142.66 million presumably for financial assistance.

Questions raised by the 2Ms were:

1. Who is the person responsible for making the offer to sell at one euro ($RM4.48)?
2. Were there other bidders?
3. Was there an attempt to get the buyer to pay a higher price?
4. Was there an announcement that M.V. Agusta was up for sale?
5. If not, did Proton approach only one bidder?
6. If other bidders were offered, did they reject?
7. Who in fact made the decision to sell?

Can Proton be willing to explain how selling an entity bought at 70 million euros for one euro would not cause Proton to lose money as is claimed?

The company that offered to buy the cheapsale outfit at Euro$1.00, Gevi S.p.A. is not a household name in the automotive industry, said the 2Ms.

If the small motor outfit, Gevi SpA is confident to turnaround Agusta, does it imply that Proton, a far larger and bigger giant automobil manufacturer, is utterly incapable and lack the competency and expertise to turnaround Agusta?

"As the two people most actively involved in the purchase of M.V. Agusta, our credibility and honesty is at stake. We want to know the correct answers," said the 2Ms.

Due to the sale, 2Ms said there was no possibility now for Proton to turn around the company and regain its purchase price, if not make a profit. "Of course, Proton will now not get access to MV Agusta engineering technology." They added that Proton bought MV Agusta fully knowing that it had a debt of Euro 230 million, which it does not have to pay for three years. In addition, MV Agusta has assets in the form of two plants (in Cassinetta and Morazzone) and stocks of motorcycles. "Losing automotive companies like Rolls Royce, Bentley, Skoda, Lamborghini, Aston Martin and many others have been bought by stronger companies and have been turned around. "But the price reflect the assets and the brand. As far as we know they were not sold for one Euro," Dr Mahathir and Tengku Mahaleel said, stating that MV Agusta's four brands were of high value.

On Proton's ability to turn around MV Agusta, they said the building of a RM1.8 billion facility in Tanjung Malim without borrowing or capital injection from the government; and with over RM2 billion cash still left over showed that Proton was a profitable company and it knew something about management to make profit. Referring to the recent loss incurred by Proton which was said to be due to provisions made for MV Agusta loans, Dr Mahathir and Tengku Mahaleel claimed that Proton Edar CEO Datuk Maruan Mohd Said had during a press conference admitted that the discounts given by Proton had affected Proton's profits. "Unfortunately no figures were given. But apparently a total of 54,000 cars were sold in three months with rebates and large discounts which included free registration, free insurance, free first instalment payment for three months and free service. "Roughly the discount per car would be around RM2,000 or more. At RM2,000 on 54,000 cars, Proton would forego RM108 million.

"The increase in the number sold cannot make up for the amount foregone."

Describing these figures as a reflection of a failed strategy, Dr Mahathir and Tengku Mahaleel said instead the loss was attributed to provisions for debts of MV Agusta. "When provisions are made for bad debts, it does not necessarily mean that the debts cannot be recovered. "The debts of MV Agusta are frozen in any case and it need not be paid immediately. Has the amount provided been paid so as to reduce MV Agusta's debt or is it still with Proton when MV Agusta was sold at one Euro?" they asked.

The scene is now set for a tatanic showdown. Let's wait for the corporate-political tsunami to erupt as it will open up the pandora boxes.

Can we identify which and which? Which head is poisonous?

Agusta - The Proton's Prize of pride and Arrogance

In line with the Malaysia Boleh Egology, the price the ignoramus manager paid is the prize they ultimately swallowed: RM367 million.



BUY: RM367 million

Objective: Parade someone's Pride and Prejudice

Mission: To conquer the Automobil World of Fallacies

Target: MV Agusta SpA

Due Dilligence: Lost-making company (technically insolvent)

Recommendation to the Board: Good Buy; Money or Money's worth!!!

RESULT: Acquisition Loss = $367million + operational loss (Undisclosed)

Conclusion: Failed venture

Reason: Chimera

Corrective Action Taken: Sell off at E$1.00

Lessons Learnt: Not Yet!

Lame Excuse: We (Proton) are not the only one that failed; MAS is no better than us!

Proton Speedily Down-hill

In the beginning, they blame the APs (Approved Permit to import cars)

The oligarchy concorted the theme and undressed the minister-in-charge of the handouts, blaming her for the saga.

Then, as financial results will have to be published, the system quickly turn around and hit the CEO with a club - they sack him.

Mahaleel was the victim of circumstances ...

Thereafter, they took to the investors floor to announce the group pre-tax loss of RM4.3mil for the first quarter ended June 30, 2005, compared with a profit of RM198.3mil in the previous corresponding quarter. The losses was attributed to provisions of doubtful debts as well as reduction in sales volume. The loss was on top of the unrealised foreign exchange-gain of RM22.5 mil arising from the revaluation of a 70million euro loan. The preceding quarter recorded a pre-tax profit of RM165.5 mil.

However, the group loss seems miniature and shouldn't have mattered at all.

No, it was a preceding news of more later bad news to be announced ... coming soon ...

Now, before the dateline, they made another pre-emptive notice of prediction to prepare the hearts and minds of investors ... for more bad news to come ... so that the day of reckoning will be less heart-trobing ...

Words are sent out to the investors and the public - that PROTON Holdings Bhd may post a staggering pre-tax loss of some RM700 million for the second quarter, caused mainly by red ink at its overseas subsidiary MV Agusta, the Italian motorcycle manufacturer.

"It looks like the red ink from MV Agusta has spread to Proton’s own books. Undertaking MV Agusta’s outstanding debts with banks and suppliers turned out to be a very expensive venture, and now Proton is paying a high price for its foray overseas,” a source said.

It is understood that these losses are based on debts Proton assumed after taking over MV Agusta, plus the motorcycle maker’s own accumulated operating losses. If the losses are of this magnitude, it will likely push the Proton board, headed by Datuk Mohammed Azlan Hashim, to make some hard decisions on whether to cut its losses and sell off the ill-fated MV Agusta,” the source said.

Proton is due to report its second-quarter numbers for the period to September 30 this week. Analysts were surprised by the magnitude of the first-quarter loss. But they pointed out that management had warned of additional provisions.

By making huge provisions, Proton could be cleaning up its books for its new partner,” an analyst said.

Under former chief executive Tengku Mahaleel Tengku Ariff, Proton rescued MV Agusta, a famed but struggling designer and manufacturer of Agusta, Cagiva and Husqvarna motorcycles. It is believed that the deal to buy a controlling 58 per cent stake in MV Agusta Motor SpA last October set Proton back by Euro70 million, or some RM350 million, by underwriting the company’s loan from Citibank. The new financing saved MV Agusta, allowing a court in Italy to drop temporary receivership proceedings against the Italian motorcycle maker.

Will the situation improve in the 4th Quarter?

Even optimist forecasters and predictors dare not risk their integrity.

Will Proton be able to ride out the storm?

Only God knows ... but men can also know ... all you need is to understand the basic theory of a dysfunction system and trace the structure of the organizational framework and cultures.

Another bailing out is needed not too far from today. More taxes will be needed to patch the holes which is deep ... so deep ... so damn deep ...