He said the launch also symbolised the government’s determination to help Proton regain its glory days and put it back on track to generating more profit which will benefit the country.
He added that Proton could also prove it was a serious player in the automotive industry, and continue to have a major role in the development of local talent, vendors and entrepreneurs.
“I hope the launch of the new model Perdana will be a turning point for Proton, and benefit the national economy and people.
“I am sure the company will continue to innovate and improve, to produce the best cars for Malaysians and customers abroad,” he said at the launch of the fourth generation Proton Perdana here today.
Najib, who is also Finance Minister, however, noted that Proton was not currently in the position it should be, as it was lacking the right research as well as development abilities. Its production scale also needed to remain competitive.
“At times, there was a sense of hubris, that Proton could do anything as the government would always back it. Two factories were built (Tanjong Malim and Shah Alam), capable of producing 400,000 units annually.
“But, last year, Proton sold only 102,000 cars,” he said, adding, the company’s share of the domestic automotive market stood around 15%, compared to a peak of 74% in 1993.
Najib said the government had to date provided grants of nearly RM14 billion, various forms of assistance and foregone taxes to Proton, since it was established in 1993.
In April, he said the government approved a soft loan of RM1.5 billion to Proton Holdings, subject to several conditions which the company had to meet.
“This is not a bailout as the loan came with strong conditions. But, the urgent need for the cash injection, laid bare the fact that there are serious structural flaws within Proton,” he added.
Najib said Proton had flourished due to a very high level of government assistance, and the national car industry grew under the umbrella of protectionism with quotas on engine sizes, and Malaysians paying high import duties on foreign cars.
He said with government assistance, Proton must meet stringent standards of professional management to move forward, and ensure it had a model for long-term sustainability, while immediately identifying a strategic foreign partner.
“The loan was not a blank cheque. The company must prove itself, both in the domestic and international markets. Ultimately, Proton must build up a strong export programme and become less reliant on Malaysian buyers,” he added.
He highlighted that the government wanted to see Proton succeed again, and for this reason, the company would be assisted by the newly-formed Special Task Force.
The task force, headed by Pemandu Chief Executive Idris Jala, will identify the strategic foreign partner, and monitor the turnaround process.
“We have learned from Proton’s past, so the task force will not interfere in the day-to-day operations of the company,” he said.
Najib also thanked Proton and its workers for their efforts and contribution to the automotive sector.
“I am sure the company will continue to innovate and improve, to produce the best cars for Malaysians and customers abroad.
“The launch of the new model Proton Perdana today should be the start of a fresh chapter in the company’s history. Proton must deliver cars that meet the requirements of customers,” he said.
– BERNAMA