Wednesday 29 March 2017

Le Proton

In this post on March 3

I wrote (excerpts) -

As for selling off Proton to the Chinese, in the first place, I don't think it's going to be so.

I forwarded my uncle the link to this story;

Maker of Peugeot, Citroen eager to partner Proton

Yup, I think it's going to be the French.

And yesterday there is this story,

Peugeot in talks with Proton for possible tie-up

Well, I'm quite sure that's going to be the deal as far as Proton's foreign strategic partnership is concerned.

That's because this is the story about the other potential partner,

Geely pulls out of Proton bidding process

Well, I think I got this one right.

Anyway, as I previously wrote, the move to set-up Proton with a foreign partner doesn't seemed a bad idea.

You can read it here,

Maybe Dr Mahathir wouldn't mind the Japanese too much


Of course the potential foreign partner will want some control over Proton to make things work, thus that 51 per cent stake.

I don't see anything wrong with that.

It's better that way than letting Proton suffer the way it is now.

I think a reliable foreign partner will do good for the company, particularly in correcting the bad practices currently plaguing the company which brought down the Proton badge in the eyes of even Malaysians.

For example, a foreign partner with controlling power can get rid of vendors who supply substandard parts for the Proton cars.

I was made to understand that many of these vendors got their work with Proton via political connections and no matter how bad they performed in supplying parts for the cars, they were always retained.

Proton people can't get rid of them because they would pull their "cables" to stay on the job.

That's how Proton cars became famous for their faulty power windows, cheap plastic interior, making funny noises just weeks after purchase, etc.

Okay, let's watch a Peugeot versus Proton video with the fair Richard Hammond as the judge,

I first like Hammond and think he's fair because of this video on Perodua Kelisa which was thrashed by his friend Jeremy Clarkson,


  1. French TGV to takeover ECRL too right...hopefully no Scorpene commission & no who killed Altantuya!!!

  2. Even with a 51% stake in Proton, it will still be politically difficult for Peugeot to dump all these crony suppliers or to dismiss those managers in Proton who collaborate with them; unless the current government supports the new Proton management in cutting out the rot.

    It is interesting however why Perodua does not appear to face such problems as Proton, even though Perodua is majority Malaysian owned.

    1. The current gomen has already cut and removed the rots.Infact he is leaking his wound.

    2. p2 mfg n global, the sub that do manufacturing for p2 vehicle, r managed by japanese. local mgt involvement is very minimal.

      peugeot was almost taken over by the chinese if not french govt step in, n they wan to buy proton? interesting.

    3. Because Perodua need not spend on R&D to develop their own modEls. They are happy to keep on making Daiharsu clones.which other than being reliable are pieces of unsafe crap. Look at recent highway accidents. Perodua drivers always end up in worse shape.

    4. @ Anonymous 29 March 2017 at 18:12

      Najib most likely will be less accommodating to Proton but if the "Four Musketeer Party" wins Federal Gomen in GE14 "The Mad Hatter" will be back to molycoddle Proton and we'll also have a crooked bridge half way from Johor Baru to Singapore.

    5. Why did GEELY pull out of the "race"? According to reports, it is something like " they say one thing today, another thing tomorrow"....and the next day? Who knows.....probably it's about those cuts and downsizing......There is no way the Chinese will know "how" to do business "correctly" here......

  3. Annie,

    The French are just having talks at the moment so it is all just talk - nothing to get excited about yet.

    It was the same with Geely - nothing really but just talks.

    I have a feeling that once the talks get to the nitty-gritty about control of supply chains, labour force rationalisation, management shakeups, etc, Proton will find it hard to let go off its bad habits.

    Yes, it is totally OK to pay 10 gazillion percent over and above the cost for a rocker arm cover gasket.

    No problems to employing 18 persons to push the one same broom around.

    And what is wrong about having a manager managing a manager managing a manager managing a manager managing a manager managing the ball point pens in the stationary cupboard?

    Alright, I am "slightly" exaggerating but these are all inefficiencies which have slowly but steadily crept into the Proton manufacturing model over the years.

    I am willing to bet that Geely was going to be savage and ruthless with their approach to making Proton more streamlined and efficient and most importantly, profitable, but the political cost was just too much for Proton.

    Proton is running out of dance partners to keep dancing around the bush - first the Germans, then the Chinese and now the French.

    Who's left? The Japanese? I don't think so. The Italians? Maybe if Michelle Yeoh talks to Jean Todt and he talks to FIAT.

    Sorry to be a pessimist but I don't hold out much hope for anybody wanting to buy Proton.

    If a company like Geely, which is all cashed up and looking for takeover targets, is refusing to jump into bed with a seemingly inviting and alluring Proton, I get very suspicious.

    I mean, what's wrong with that girl... eerrr... company, I meant, company, OK? 😀

    Nupe, my guess is that the talks with the French will drag on for a while as the French do their due diligence (yes, there are companies who take due diligence seriously unlike our kangkung Malaysian GLCs), and the French will politely and diplomatically tell Proton "Non".

    I hope my pessimism is proven wrong because there are not many options left for Proton and thousands of jobs are at stake here.


    1. The main dish is not Proton. It is the side dish that is put on the table that the French have to eat. And eat they will at our expense.

  4. French Revolution?

    French girls like the armpit go forest. What a sight after your last posting about armpit.

    Dont imagine it.

  5. 'Nupe, my guess is that the talks with the French will drag on for a while as the French do their due diligence'...thats when they are buying.When they are selling , submarines for example they don't care even if its to a party who asked for higher mark-up for kickbacks.

  6. This comment has been removed by a blog administrator.

    1. Sorry. Can't publish that because it's overly racist. By the way, it's also factually incorrect. Thank you.

  7. Anonymous @ 30 March 2017 at 09:54,

    //When they are selling , submarines for example they don't care even if its to a party who asked for higher mark-up for kickbacks.//

    Of cos, lah.

    Why ask so many questions when someone is going to hand you large chunks of money? :)


  8. When are they gonna build this car hehe.....?

  9. A condition for purchasing rafale jets???

    1. 2003 lain-lain perbelanjaan 21billion
      2016 lain-lain perbelanjaan 70billion

      beli jet peribadi so riza aziz satu dunia cari boleh enjoy
      makcik pakcik tak boleh enjoy, bayar GST boleh