When I first comment on this issue on 17th July 2006. I do not aware of any plan by any entrepreneur attempted to acquire Proton.
Latest issue of The Edge reported that two recent proposals to "rescue" the national car company has been received by government.
The first was submitted by the Naza Group last year and recently, DRB-Hicom Bhd submitted a second proposal. And there is another proposals submitted by Sime Darby last year. The Edge reported that Sime Darby CEO Ahmad Zubir Murshid admitted that a proposal was submitted to the government "a long time ago".
Sime Darby, however, is a Government Link Company (GLC)...not entrepreneurs driven company. Sime Darby is a dealer and assembler of Ford in Malaysia, like Hyundai in South Korea before joint venture with Mitsubishi Motor.
DRB-Hicom, control by Tan Sri Syed Mokhtar in mid-2005 show a floundering performance, stated Leela Barrock, a journalist with The Edge. "These are just not car people," says an analyst. DRB itself may have had some history in automotive industry but Syed Mokhtar does not, write Leela Barrock. Having said that, it must be noted that DRB itself is a company that need saving. More interestingly, in its automotive segment, DRB actually posted loss of RM12.27million for 1QFY2007, compare to a profit of RM28.35 million in previous corresponding period.
PaulTan.org : Naza, DRB-Hicom to buy Proton?
南洋商报: 多元重工业纳莎建议购普腾股权 赛莫达再斗纳西慕汀
Business Times : Proton firms on talk of stake tussle
In another commentary: "Should entrepreneurs get Proton?". The Edge's Leela Barrock analyze the two Tan Sri. The she write: Nasimuddin has his Korea Kia connections, which could be used to roll out vast numbers of Korean lookalikes with Korean technology-no, not an exciting prospect for the poor Malaysian driver who would be "graduating" from a Proton to a Kia.
Later, she stated it was Mahathir who want Proton to start spawning more models against advise that a car company needs critical economies of scale. The late Tan Sri Yahaya Ahmad agreed to fulfill Mahathir's dream of multiple Protons and thus was rewarded with the national car company in the late 1990s.
He blame the late Yahaya acquired British car company without board approval, launch Tiara, a badly received car with an ancient Citroen engine. Systems and processes that are required for the healthy management of a company were done away with to fan the fires of entrepreneurial zeal.. And it was Yahaya who turned the screws on parts suppliers, which may have led to an erosion of quality.
The conclusion, she stated that entrepreneurial fervour has not worked for Proton.....against what I have suggested.
Actually, Yahaya was rewarded with a Bank (Eon Bank), a transport company (Intra-Kota) lead to group become too diversified. I find Syed Mokhtar group has some similarity with the empire of late Yahaya. Thus,, causing recent loss of DRB-Hicom Bhd. And there is a deal between the government (Mahathir) and entrepreneur (Late Yahaya) like Tajuddin Ramli, causing the failure.
Naza, however, is more focus than the above two. Although Nasimuddin have other non-automotive business like hotel and taxi company.
At the moment, there is only a few automotive company in the world run by government. Any successful one?
星洲日報: 分析員：售股權給納莎和多元資源無助解決普騰問題
Update:No proposals to buy Proton stake
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