The Malaysian government has decided to end its protection of Malaysia's Proton Motors. In addition to the import duties and taxes levied against foreign carmakers, Proton was also the recipient of tax breaks and "other government incentives."The decision could be seen as a blow to Proton, but Malaysian Prime Minister Abdullah Ahmad Badawi is confident that the carmaker can and is turning itself around. Even though it has lost half of its market share while it was being protected by the government, Badawi said recently "No question of a bailing out. Proton is doing well today... they have a good program, they have secured exports to India, China, Indonesia and the Middle East."
For it's part, Proton's efforts to link up with a foreign car company didn't end well last year. For the moment, it has proposed that the government take an official stake in the company.
[Source: InsideLine]
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Reader Comments (Page 1 of 1)
The Doctor @ May 20th 2008 8:20AM
Tip for Proton: hand all responsibility for design work to Lotus and just build what they tell you to.
Philthy @ May 20th 2008 9:23AM
Yeah, because Lotus has never gotten itself in financial trouble...
Nellydesign @ May 20th 2008 10:21AM
I hope nobody tries to kill the prime rib of Propecia. I mean the prime minister of Malaysia.
OBEY MY DOG!
Paul Tan @ May 20th 2008 10:41AM
The government HAS an official stake in Proton. This is why Volkswagen's talks last year were conducted with the government's investment arm which is the majority shareholder.
Anyway, this is likely to be all talk. The measures Abdullah quoted have already been in place for years, and nothing significant's changed in the auto industry here.
hidden_hunter @ May 20th 2008 11:37AM
Good luck with that proton, they sell protons here in Australia and they're terriable in every aspect.
Cool a $15,000 car the size of most $25,000 shame it's worth $4,000 once you drive it off the lot.