Proton Is Not A Lame Duck: Chairman

[Mark H]

NORWICH, UK, Oct 4 (Bernama) -- Proton Holdings Bhd is not like a lame duck that needs a helping hand to survive, says chairman Datuk Mohd Nadzmi Mohd Salleh.

 

He said any future collaboration with other parties must be based on the company's strengths.

 

"We are not like a lame duck wanting somebody to carry us and I believe that we must use our strength to collaborate with other parties.

 

"The impression that Proton is dying and needs a partner is not the case," he told Malaysian reporters in conjunction with the Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin's official visit to the Lotus plant here recenty.

 

Mohd Nadzmi said in the automotive industry, there are brand and technology collaboration and platform sharing.

 

While saying that Proton's financial performance was improving, he added that the national carmaker is moving in the right direction by offering the right car at the right time and right price.

 

"We are very determined to change the financial performance of Proton and you will see good performance in future," he said.

 

Proton reported a pre-tax profit of RM64.379 million in the first quarter ended June 30, 2009, up 9.7 percent from RM58.700 million chalked up in the same quarter last year.

 

Proton' Group Managing Director Datuk Syed Zainal Abidin Syed Mohamed Tahir said the company will soon executive a plan to move forward.

 

"Things are now moving in the right direction. Collaboration adds value to the journey that we want to take. We're not waiting to be salvaged nor to be saved," he said.

 

Wants Lotus brand to scale greater heights

 

The national carmaker wants to build upon the Lotus brand and return its lost glory by introducing new car models.

 

Syed Zainal Abidin said the recent launch of Evora, Lotus' first car since 1995, is a turning point for the brand to scale greater heights.

 

"We believe Lotus's potential is in the branding. If you go acrosss the globe, the brand recognition is very strong but we have not lived up it," he said.

 

Lotus Group Chief Executive Officer Dany Taner Bahar said the Lotus brand's potential was huge and its inherent strengths were the iconic brand, its long history in car racing and its reputation as a manufacturer of exciting, innovative and light sports cars.

 

"Lotus was mentioned in the same sentence as Ferrari, Lamborghini and Maserati in the 1970s-1990s. Then, it got closed into a corner. We believe it's the right time to bring Lotus back to where it was," he said.

 

Besides uplifting the Lotus brand to greater heights and success, Syed Zainal said Proton would continue to explore further and utilise Lotus' engineering advancements and technologies to enhance Proton's products and manpower skills.

 

Although Proton has owned Lotus for more than 10 years, he admitted that the carmaker had not fully utilised the British subsidiary.

 

"Today, we have reassessed the interaction between the two companies. No doubt there are gaps and weaknesses that need to be improved upon, but we are quite determined to make the collaboration stronger," he said.

 

In talks for contract assembly

 

Proton is currently in talks with several parties to embark on contract assembly, says Syed Zainal Abidin.

 

He said through contract assembly, the national carmaker would fully utilise the capacity at its Tanjung Malim plant in Perak.

 

"Whatever capacity we have, if we cannot utilise it for Proton, obviously we should explore contract assembly," he told Malaysian reporters.

 

Elaborating further, Chairman Datuk Mohd Nadzmi Mohd Salleh said by undertaking contract assembly it does not mean Proton was inconsistent with its role as a car manufacturer.

 

He said in the short term, contract assembly was a practical solution for the company.

 

According to MIDF Research recently, Proton's Tanjung Malim plant has the capacity to produce one million cars annually but today it was only rolling out 150,000 units off its assembly line each year.

 

It was reported recently that the Volkswagen group was keen to make Malaysia its sourcing hub for auto parts and completely-knocked down assembly in collaboration with a local automaker. (By MAHANUM ABDUL AZIZ/Bernama)

 

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