PROTON gets a RM1.5 Billion soft loan from the government and they say thank you

Here is the latest official press release from PROTON. This first made by the newly appointed CEO, Dato' Ahmad Fuaad Kenali. This is regarding the Government of Malaysia's approving a RM1.5billion soft loan to pay their vendors and suppliers (with the usual terms and conditions obviously). 

However, it is a good thing that would uplift the spirits of the group. I believe Proton is very necessary as it is the only company in the South East Asian region that has the research and development capability to build a car from scratch and comply with all the safety regulations globally. Perodua still cannot do so. I should know as I have met people within the industry and they tell me so. 

Whatever the case is, PROTON states that they are confident to continue their turnaround process with this support by the government. Do note that whilst Proton may not be as successful like Hyundai which only started a bit earlier, but I believe that Proton is on a different path. Take for example the American carmakers - They've floundered and faltered in the 1980s and 1990s and the Government of America did bail them out. It has taken them a good two decades to get where they are today. You see, even car companies in first world countries were in worse shape than Hyundai and they managed to get a bail out. 

Remember, this is a Malaysian company that can re-engineer a Honda Accord. When was the last time you heard Honda collaborating with another company? Never actually. The last time someone used their chassis was Rover in the 1990s, which was partly owned by them. Proton isn't owned by Honda. Historical yes?

Media Statement PROTON Holdings Berhad

PROTON IS CONFIDENT TO TURNAROUND WITH GOVERNMENT SUPPORT 

SUBANG JAYA, 8 April, 2016 – With reference to the official announcement made by Yang Berhormat Dato’ Sri Mustapa Mohamed, Minister of International Trade & Industry (“MITI”), PROTON Holdings Berhad (“PROTON” or "the Company") wishes to put on record our appreciation to the Government of Malaysia (“Government”) for the support.

“The announcement by the Government will catalyse PROTON’s turnaround plan which includes the rolling out of three new models this year starting with the Perdana. With the infusion of new members of management, theCompany is confident to turnaround,” said PROTON Chief Executive Officer, Dato’ Ahmad Fuaad Kenali.

The Company will continue to focus on improving its products and services in order to serve our customers better.

To date, the Company has produced various models in all the segments, either through collaboration with established OEMs or its internally developed capability.

“PROTON is also constantly engaging its strategic partners to explore collaborative opportunities to improve itsproducts offerings and time to market. I believe the assistance by the Government will reinforce the confidence ofour partners in PROTON,” added Dato’ Fuaad.

PROTON also understands that the sustainability of the Company will inevitably affect the eco-system of the local automotive industry involving the vendors, suppliers, dealers, pre-owned vehicle operators and our customers who have all along been loyal and supportive of PROTON.

“We value the assistance and acknowledge all the concerns earlier highlighted by the Government. We welcomethe setting up of the task force and look forward to working closely with them to chart sustainable growth forPROTON,” Dato’ Fuaad continued.

“On behalf of Warga PROTON, this will certainly uplift the morale of the 12,000 PROTON employees,” ended Dato’ Fuaad.

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