This is from The Star here.
DRB-Hicom’s core net loss RM339mil in 9 months ended Dec 31, 2016
was worse than consensus expectations
wider-than-expected losses in the auto division.
loss narrowed due to stronger contribution from Pos Malaysia.
expect wider core net losses in FY17-18F
auto segment stiff competition, sluggish consumer sentiment
new foreign partner for Proton remains key catalyst for DRB-Hicom
higher revenue recognition from Pos Malaysia
RM448mil gain from property disposal
revenue fell 10.1% on-year, from RM9.5bil to RM8.6bil
lower sales in automotive division, fell by 20.1%
pretax growth, from RM56.4m to RM94.5m from Pos Malaysia
(Pos Malaysia) key driver for DRB-Hicom
DRB-Hicom owns 53.5% of Pos Malaysia
Proton project wider losses in FY17-18F due to sluggish auto sales.
My comments : Before the arrival of Perodua, Proton had a monopoly on local car manufacturing.
Before the arrival of Daihatsu as the major shareholder in Perodua, Proton beat Perodua in car sales.
The UMW and PNB boys were not running Perodua too well.
Perodua made losses in its early years (I think so, ampun maaf if I am mistaken).
Then Daihatsu Japan took over 51% of Perodua.
Soon Perodua beat Proton hands down and became PeroSatu.
Perodua should have been renamed Perusahaan Otomobil Nombor Satu.
Or Perosatu for short.
Because they are no more ‘Dua’.
In terms of quality and reliability Perodua (which is owned by Daihatsu which is owned by Toyota) is at par with Toyota and Daihatsu.
We have always had a Perodua Kancil in the house (now it is that wonderful Axia).
The Peroduas hardly or never break down. Just start the engine and go.
Finishing and quality is good, at par with the affordable price tag.
Proton as we know has been in the dumps.
Yes I agree the earliest Protons were of very high quality.
Why? Because they were imported Mitsubishis tukar logo saja.
After Proton started making more of their cars locally, the quality changed.
The rest is a sad story.
Despite all the billions spent, despite all the protection, despite all the government support Proton still cannot sell enough of its cars. And please take my word for it – they cannot sell their cars. We simply burnt out oil money to wall paper over all the cracks.
Please read my first book “To Digress A Little” published 12 years ago in 2005. I
said then that Proton was a failed experiment. A very expensive and failed experiment.
Now Syed Mokhtar has taken over Proton.
Syed Mokhtar has always been a land dealer.
Maybe he bought Proton because of the land bank.
The news report above says : RM448mil gain from property disposal
They gained RM448 million from property sales, not car sales.
Jual property kepada siapa? Cina ke?
DRB-Hicom now suffers losses because of Proton.
Proton has contributed about RM400 million to DRB-Hicom’s losses.
Now the only thing keeping DRB-Hicom afloat is their 53% control of Pos Malaysia – which is another monopoly business. I hope our postal rates will not go up : (
Proton was a monopoly businesses. They could not make profits.
Throw in some competition and out the window they go.
Throughout all these years the Malaysian consumer (and taxpayer) has had to suffer among the highest car prices in the world. Through duties, taxes, APs and other controls, we have caused the prices of imported cars to reach sky high levels.
For the amount of money we are paying and we are capable of paying, all of us should be driving much better quality cars than we have now.
Those who drive Protons can already afford to own and drive lower end Hondas. Those who drive Hondas can already afford to own and drive Mercedes.
Cars are not a luxury. They are now necessities. We must make necessities as cheap and affordable as possible. The price should reflect the quality and standard of the car. Let the market decide.
Find a foreign partner for Proton. Then completely remove ALL protection, import duties, taxes, APs, permits etc on the import and distribution of foreign cars. Please do it yesterday.
There are other things that can be done.