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Revival plan for Proton
by JF Wed 17 Oct 2012, 10:21
DRB-HICOM Bhd, the country's biggest automotive company, will announce a plan by as early as next month to revive the fortunes of national carmaker Proton Holdings Bhd.
DRB-HICOM's group chief operating officer Datuk Seri Che Khalib Mohamad Noh said that the plan will determine Proton's future competitiveness and sustainability.
"If we don't solve Proton's problems, not only Proton, but the whole DRB-HICOM group will go down," Che Khalib told newsmen on the sidelines of the Malaysian Institute of Certified Public Accountants-Bursa Malaysia 2012 forum yesterday.
Group managing director Datuk Seri Mohd Khamil Jamil admitted that Proton is very important to DRB-HICOM, but the company is not dependent on a single business entity to ensure its long-term sustainability.
"Our diversity is our strength and that has helped DRB-HICOM grow and remain stable," Mohd Khamil told Business Times.
Even before taking over Proton this year, DRB-HICOM's automotive, motor and military divisions were registering some RM4 billion in sales.
The company's motor and military division is considered a big and stable revenue earner with more than RM8 billion worth of contracts to boost the country's fleet of personnel carriers.
DRB-HICOM bought Khazanah Nasional Bhd's 42.7 per cent stake in the national carmaker in January for RM1.2 billion and subsequently bought the rest of the shares it did not own for a total of RM3 billion.
Che Khalib, meanwhile, said that the domestic car market is very competitive, and as such there is a need for DRB-HICOM to come up with a car which the market wants, at a very competitive price.
"The new business plan also has to look into the whole ecosystem of Proton which includes the vendors as well as its more than 100,000 workers.
Che Khalib, however, declined to give further details of the plan or comment on the possibility that a foreign partner would be roped in for Proton.
Mohd Khamil recently said at the group's annual general meeting that the conglomerate plans to introduce a foreign partner to Proton.
It has also raised the domestic sales target for the national carmaker to 200,000 units for the current financial year ending March 31, 2013, from 167,000 previously.
Read more: Revival plan for Proton [You must be registered and logged in to see this link.]
DRB-HICOM's group chief operating officer Datuk Seri Che Khalib Mohamad Noh said that the plan will determine Proton's future competitiveness and sustainability.
"If we don't solve Proton's problems, not only Proton, but the whole DRB-HICOM group will go down," Che Khalib told newsmen on the sidelines of the Malaysian Institute of Certified Public Accountants-Bursa Malaysia 2012 forum yesterday.
Group managing director Datuk Seri Mohd Khamil Jamil admitted that Proton is very important to DRB-HICOM, but the company is not dependent on a single business entity to ensure its long-term sustainability.
"Our diversity is our strength and that has helped DRB-HICOM grow and remain stable," Mohd Khamil told Business Times.
Even before taking over Proton this year, DRB-HICOM's automotive, motor and military divisions were registering some RM4 billion in sales.
The company's motor and military division is considered a big and stable revenue earner with more than RM8 billion worth of contracts to boost the country's fleet of personnel carriers.
DRB-HICOM bought Khazanah Nasional Bhd's 42.7 per cent stake in the national carmaker in January for RM1.2 billion and subsequently bought the rest of the shares it did not own for a total of RM3 billion.
Che Khalib, meanwhile, said that the domestic car market is very competitive, and as such there is a need for DRB-HICOM to come up with a car which the market wants, at a very competitive price.
"The new business plan also has to look into the whole ecosystem of Proton which includes the vendors as well as its more than 100,000 workers.
Che Khalib, however, declined to give further details of the plan or comment on the possibility that a foreign partner would be roped in for Proton.
Mohd Khamil recently said at the group's annual general meeting that the conglomerate plans to introduce a foreign partner to Proton.
It has also raised the domestic sales target for the national carmaker to 200,000 units for the current financial year ending March 31, 2013, from 167,000 previously.
Read more: Revival plan for Proton [You must be registered and logged in to see this link.]
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