Thursday, March 31, 2016
Dr. Mahathir resigns from Proton and Lotus...
Dr. Mahathir (Picture below with me[John Mansfield]) has resigned as Proton and Lotus Chairman
The good Doctor is the former PM of Malaysia. He founded Proton. He has also resigned from other posts.
He is 91. This is not necessarily the reason he has resigned. He has an ongoing issue with the present PM. It has been suggested that this might be the reason for his resignation.
DRB Hicom own Proton and Lotus. They (Proton and Lotus) have a poor Commercial track record. Both need investment. Obviously, they could go under the wing of an established OEM. Historically, this has been attempted, but always failed.
Normally, the Government gives them (Proton) grants.
In one of his recent post on his Chedet blog, Dr Mahathir accused the Malaysian Government of allowing Proton to go bust...
In Britain, we have a history of subsidised Car Companies (British Leyland).
By resigning Dr Mahathir will make it more likely that DRB Hicom can approach the Government with a viable plan for both Proton and Lotus and come away with a cheque.
In Malaysia this is quite contentious. It was here in Britain. The term 'Lame Duck' comes to mind.
However, having worked in Proton's Shah Alam facility, I have empathy with the workers. I have always had a soft spot for Lotus, and it would benefit both if money were available.
Should the money become available, it would need to produce a sustainable entity. I think Proton has now got to realise that the Government no longer views it as 'Too politically connected to fail' .