KUALA LUMPUR, July 3 — The government is still open to the idea of a strategic foreign partner for Proton Holdings Bhd but it has to be on the right terms and conditions, said Prime Minister Datuk Seri Najib Razak.
“I don’t think Proton can manage without one (foreign partner) but it has to be the right one. The terms and conditions must be fair to us as well,” he said.
“So, moving forward, a restructuring of the national carmaker is necessary in terms of having a strong and appropriate foreign partner,” Najib said in a 30-minute interview with Adam Bakhtiar of CNBC, which was aired today.
He said even the vendor system has allowed proliferation of too many companies and they are not competitive or of higher quality.
Asked if the National Automotive Policy and Bumiputera equity participation in the vendor system will be liberalised further, Najib, who is also the Finance Minister, said: “We certainly want to upgrade the quality.”
The companies should go for consolidation to strengthen their performance, he said.
Najib said that auto tariffs would also need to be reviewed from time to time.
“But we have to look into Proton’s position as well. A stronger Proton certainly will be able to compete within Asean even if the tariffs are reduced,” he said. – Bernama

written by alenac, July 03, 2009
written by swipenter, July 03, 2009
Look at the state of global car industry today. All of them big and small, strong and not so strong are trying to survive the crisis. Buying into a car manufacturer like Proton now is a distant possibility.
Proton had their chances but chose not to take it. Remember beggars cannot be chosers
written by monimoku, July 03, 2009
written by miswara, July 03, 2009
Proton only benefits a few cronies who continue to produce junk and can only be sold to Proton and no one else. Yes, thanks to our stupid gov.
who cares if Proton is sustainable. If you get to milk the cow endlessly.
So, do you part. STOP BUYING PROTON.
written by scrutinizer, July 03, 2009
Proton is a huge mistake right from the start. Like petronas petrol stations, it was created for the Umnoputras to get rich.
Are you kidding? At this lowest economic crisis looking for strong foreign partners? US, Japan, S. Korea & EU can't even take care of their own automakers' problems la.
At least you are telling the truth that Proton cannot survive la. Just tell us the truth, not camouflage la.
written by vik, July 03, 2009
written by Dulan-Dulan, July 03, 2009
Proton of no-tech or SAAB with sofisticated technology?
Proton of poor reputation of defacts or Fiat with reliability?
Proton with designs that never change or Chevrolet with innovation?
Besides, there are droves of UMNO crony buaya in Proton with jaws wide open ready to eat up any investment you throw in.
There are good and valid reasons why Mitsubishi couldn't wait to cabut and lari kuat kuat as soon as contract expired.
Simple answer, isn't it?
Proton is not a national pride, it was a hoax plotted by Mahathir for his personal ego and pecuniary gains. For many years, we have been made to buy Mitsubishi cars in inferior Proton shells. We Malaysians have been made the victims.
written by donplaypuks, July 04, 2009
Soon Proton management will come out and say they can turn things around themselves since it;s not their money that will be at stake. But secretly the Govt will bail it out with cash disguised as 'R&D' grants. Then various Bumi NGO's will come out and say that Proton must remain in M'sian hands as it is a project that 'must not, cannot" fail as Bumi pride is at stake. So, we will be back to the drawing board and lose a few more billions and wonder where all our Petronas oil money and national reserves went to!
Sheesh! Just bite the bullet and get on with a foreign partner and giving up management control.
written by No value, July 04, 2009
I look forward to the day that Proton is gone. It has been a horrible and expensive driving experience. An inferior product that was sold at ludicrous prices.
PS. Foreign companies will only take it if they are allowed to make most of the company decisions. And we, Malaysians can continue paying high prices for proton.
written by Charles F Moreira, July 04, 2009
written by V, July 04, 2009
written by Benedikt Schwarzacher, July 04, 2009
The government protection of Proton and the resulting purchases in Malaysia of this piece of crap reminds me on Eastern Europe, where everybody had to drive Ladas, Trabants!! It's simple close Proton!!!
written by suara, July 04, 2009
written by PM Markham, July 04, 2009
written by Ed, July 04, 2009
After more than 20 years of protection, this very pariah-quality car maker can't even compete with Japanese cars, even after a 200% tax! This should already tell you how useless this company is!
THe government should just sold this entire company to foreign companies. By doing so, you are not only helping proton, you are saving money for the RAKYAT.
We do not have to pay higher price due to the protection (i.e 200% custome duty on import car) given to Pariah. Many people would rather pay higher to get a better quality car, rather than a wira (my first car!) which will automatically shut down while travelling on a high-way.
The taxpayer money could be better spent to revive the country rather than giving subsidy to Pariah to lower their cost, to remain competitive, and at the same time, we need to pay RM50k to get an auto-shut-down car. And also, we do not have to spend RM1 million to maintain a proton perdana!
Taking over lotus should have given us a technology know-how in developing some competitive and good engines, apparently, lotus has since on the downward trend thanks to Proton. Continue to replace the engineers there with Proton's.
Stop protecting them, it is time for them to fight. Only through competition, this very sub-stantand car maker would become more competitive and efficient.
written by Jack, July 04, 2009
A new CEO has to be appointed whereby his/her main task is to let Proton to be acquired.
Or else, talks only. And continue to suffer - where American pay equivalent to RM60,000 (Ringgit Malaysia) for a Honda Civic, and we have to pay RM120,000.
written by Lula, July 04, 2009





No point propping uncompetitive businesses - its a massive waste of time funds and effort. (simply a sinkhole)