Who will get Proton in Malaysia?
Malaysia's car market is the biggest in Southeast Asia - however, Thailand is rapidly building itself up as the Detroit of the East.
Over the last couple of years, Proton as a local company lost market share to its competitors, Perodua, another local company, but also against foreign competition. This despite the fact that the company is still heavily protected by duties imposed on foreign imports. Foreign imports gained due to cost efficiencies in operations gained elsewhere that probably allowed them to pass on savings to their Malaysian customers.
Proton reshuffled its organisation during this week. Under the reorganisation, Proton swapped shares with a new holdings company, called Proton Holdings, which will have four divisions, namely manufacturing, sales, engineering and ancillary equipment.
Its CEO was under fire to resign, but he stayed in power, while the number of members in the board of directors was reduced. As new advisor appointed was former Prime Minister, Tun Dr. Mahatir Mohamad, who kind of established the company and defended its independence in earlier years.
Over the years, there always were rumuors that Proton as a company would have to allow a foreign stakeholder to enter the company - and it always denied. And so did other foreign market players that were mentioned. Until recently, Mitsubishi had a larger share, but they sold most of it already. Proton's leadership states that they would only look for strategic partners, not to sell a stake - which could be, given the fact that they had a kind of unhappy relationship with Mitsubishi.
Which player could come in? Nissan is looking at other partnerships in Malaysia, so they will also be out of the picture. Mitsubishi and via it, DaimlerChrysler, won't have much interest - they sold off the stake they had, and Daimler is already in big trouble. Ford? May be, but they also struggle at home. Now General Motors is in discussion, and they deny their interest. Another European brand, like Volkswagen? The company is kind of weak in Asia, beside China.
Something will surely come up in the next couple of weeks - if someone denies too loud, some truth is always in it - let's see about it. Or, do you have any suggestions?
(By Asia Business Consulting)
Over the last couple of years, Proton as a local company lost market share to its competitors, Perodua, another local company, but also against foreign competition. This despite the fact that the company is still heavily protected by duties imposed on foreign imports. Foreign imports gained due to cost efficiencies in operations gained elsewhere that probably allowed them to pass on savings to their Malaysian customers.
Proton reshuffled its organisation during this week. Under the reorganisation, Proton swapped shares with a new holdings company, called Proton Holdings, which will have four divisions, namely manufacturing, sales, engineering and ancillary equipment.
Its CEO was under fire to resign, but he stayed in power, while the number of members in the board of directors was reduced. As new advisor appointed was former Prime Minister, Tun Dr. Mahatir Mohamad, who kind of established the company and defended its independence in earlier years.
Over the years, there always were rumuors that Proton as a company would have to allow a foreign stakeholder to enter the company - and it always denied. And so did other foreign market players that were mentioned. Until recently, Mitsubishi had a larger share, but they sold most of it already. Proton's leadership states that they would only look for strategic partners, not to sell a stake - which could be, given the fact that they had a kind of unhappy relationship with Mitsubishi.
Which player could come in? Nissan is looking at other partnerships in Malaysia, so they will also be out of the picture. Mitsubishi and via it, DaimlerChrysler, won't have much interest - they sold off the stake they had, and Daimler is already in big trouble. Ford? May be, but they also struggle at home. Now General Motors is in discussion, and they deny their interest. Another European brand, like Volkswagen? The company is kind of weak in Asia, beside China.
Something will surely come up in the next couple of weeks - if someone denies too loud, some truth is always in it - let's see about it. Or, do you have any suggestions?
(By Asia Business Consulting)
posted by Andreas @ 6:00 pm
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