Proton to be sold
Filed under: Latest News Rumours of Proton’s financial woes are widespread and largely accurate. The company’s in trouble. The Malaysian government has decided to sell its 43% stake in the company to DRB-Hicom for a rather hefty $410million. Last year Proton recorded a 76% drop in profits and was rumoured to be selling Lotus to make up some of its losses. DRB-Hicom, owned by billionaire Syed Mokhtar, already hold several automotive interests. The company assembles vehicles for the likes of Volkswagen and Mercedes-Benz . Of its eight assembly plants, four are for the automotive industry. It seems that as far as sales go, DRB-Hicom is a good place for Proton (and its subsidiaries) to go. The deal will give the company another two plants and which see production of 350,000 units a year. But what about Lotus ? Is the Hethel-based firm safe? In a statement released this morning nothing has changed: “As far as we are aware, this situation changes nothing for Lotus, Proton’s support in our development remains very strong and our focus, as always, is on the delivery of the business plan.” So fear not, as far as we know plans for the new Esprit are still at full chat and the company is in no danger at all. Similarly, if you want to buy a Gen2 there shouldn’t a Saab-like supply problem any time soon. A result all round, then. Source: Bloomberg
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Proton to be sold