Proton SOLD to DRB-HICOM. What's next?

The Star Business, Wednesday January 18, 2012

Disclaimer: THIS IS NOT MY WORK. SOURCE: Click me

After Proton stake sale, all eyes on merits of deal

Behind the news - By Choong En Han

NOW that the dust has finally settled on who will own Khazanah Nasional Bhd's 42.74% stake in national carmaker Proton Holdings Bhd, the focus will shift over to the merits of the deal.

This is important to shareholders of DRB-Hicom Holdings Bhd, the conglomerate which is not only buying the stake but also making the mandatory general offer for the rest of Proton. And it is important for shareholders of Proton as well.

There will be questions whether Khazanah has struck a fair deal, given that the stake was bought at roughly RM8 per share over several years and in various tranches from different shareholders.

We can expect the picture to become clearer when DRB-Hicom groupmanaging director Datuk Seri Mohd Khamil Jamil meets the press today.

Proton has a list of well-known problems, including its extremely underutilised Tanjung Malim plant, its Lotus turnaround plan and its need for a strategic global partner to drive future growth.

The controlling stake in Proton has come full circle and is finally back to DRB-Hicom. And it looks like it will be the turning point for the national carmaker and this is where all the hard work begins for DRB-Hicom. Words like partnerships, collaborations and strategic joint ventures have been the more favoured keywords recently for Khamil to relate to Proton.

People looking at Proton Exora multi-purpose vehicle at a Proton showroom. The question now is whether DRB-Hicom can lift Proton out of its financial doldrums.

No stranger to these keywords himself, indeed Khamil has led DRB-Hicom to greater heights by associating the automotive and industrial conglomerate to other global automotive marques and establishing its presence throughout the entire value chain of the automotive industry.

The question now is whether DRB-Hicom can lift Proton up from its financial doldrums after being dragged down by provisions made for its Lotus turnaround plan.

Despite being a domestic-centric car manufacturer, Proton needs to bank on its export base to increase its sales volume and drive the next phase of growth, as the local market seems to be reaching a saturation point with the total industrial volume hovering around 600,000 units.

Collaborating with a foreign strategic partner seems to be the obvious choice for Proton to become a global brand or, maybe, in the nearer term, an Asean brand.

Analysts and observers alike have touted Volkswagen to be the best suitor for Proton, with the latter's significantly underutilised Tanjung Malim plant fitting Volkswagen like a glove to meet the German marque's ambition for a manufacturing hub in Asean.

Excess fat: ‘Proton cars at a logistic centre in Kuala Langat. CIMB believes DRBHicom is well positioned to reap significant low-hanging fruits.’

There is also another potential collaboration on the cards with long-time partner Mitsubishi Motor Corp to assemble Mistubishi cars and the possibilities of engine development.

However, with the entry of DRB-Hicom, the Mitsubishi deal might be scuttled in favour of a more muscular foreign strategic partner like Volkswagen.

Meanwhile, questions also arise about Proton's upcoming launch of “P3-21A”, which is touted to be the model that will make Proton's presence felt in the global car scene. The sudden entry of DRB-Hicom would definitely have an impact on the planned launch of the new car in March.

Currently, DRB-Hicom derives almost 60% of its automotive revenue from business ventures with the national carmaker. It is also the biggest distributor of Proton cars under EON Bhd, besides Proton Edar. The group's manufacturing and engineering companies are all first-tier vendors to Proton, accounting for RM600mil to RM700mil worth of business.

No doubt synergistic gains and operational benefits abound in this link-up between DRB-Hicom and Proton but there will be questions on how Proton's current plans can gel up with DRB-Hicom's future direction.

Recent Related Articles:

• Jan 18

  After Proton stake sale, all eyes on merits of deal

• Jan 18

  Proton revving up

• Jan 17

  Future ventures must benefit Proton, says DRB-Hicom group MD

• Jan 17

  DRB-HICOM has a workable business model for Proton

• Jan 17

  DRB-Hicom a natural frontrunner for Proton stake

  
  
• Further readings:

http://paultan.org/2012/01/17/drb-hicom-picked-to-get-proton-what-will-happen-next/

http://paultan.org/2012/01/18/reports-drb-hicom-to-cut-protons-costs-review-lotus/

House 4 cars got break in, items stolen

This morning (midnight) my house got break in.  Here are the items stolen:

1) Honda Civic FD2 2.0IVTEC: 1 Smartag and coins

2) Perodua MYVI SXi (Doors locked, so doors got signs of forced entry.  Coins 

3) Proton WAJA 1.6 4G18

- Smartag gone

- GARMIN NUVI 1350 GPS worth RM550 stolen (Serial no: 1NP874141)

- Spoiled Pentax M50 camera stolen

- Sony MP3 Player E-series E-464 8gb Black (with silicon cover)

- coins

4) Perodua MYVI 1.5SE(A).  Signs of forced entry.  1 smartag gone.

DRB-HICOM declares interest in Proton

SOURCE (Click me!)

PETALING JAYA: The Proton Holdings Bhd saga continues with DRB-HICOM Bhd group managing director Datuk Seri Mohd Khamil Jamil coming out to confirm that the group has put in a bid for the national carmaker.

“It is up to the owner (Khazanah Nasional Bhd) to decide on the best suitor. Proton has been in my radar for a long time. Back in 2009, we submitted a proposal with conceptual ideas to Khazanah. However, at that time, they were not interested to dispose of Proton,” he said.

Last Thursday, Proton chairman Datuk Seri Mohd Nadzmi Mohd Salleh had stated his intention to bid for the national carmaker.

Speaking to reporters at a media retreat yesterday, Khamil did not provide details of DRB-HICOM's bid but admitted that Proton would not be an easy project due to the stiff market competition.

Khamil

Asked on the price offered, he said: “You cannot say that we will be buying it at the speculated price. It depends on our capability and capacity. At the end of the day, it is on a willing-buyer willing-seller basis. You cannot measure it based on net tangible asset. It should be priced at a practical, reasonable and workable range.”

Khamil said the group submitted a proposal to Khazanah a few months ago, after the group got wind that Khazanah's stake in Proton was up for sale.

“I'm a long-term player, I never go for short-term gains,” he said.

In filings to Bursa Malaysia last December, DRB-HICOM denied any knowledge of a bid for Proton and of plans to sell a stake in Proton to Volkswagen AG.

The company issued the statement in response to a StarBiz report quoting sources that said DRB-HICOM would divest a portion of its controlling stake in the national automaker to Volkswagen in the second stage of a two-stage bid to win control of Proton.

Khamil said: “I think Proton is a good company and there is a lot of potential in Proton. It might just need a little bit of impetus to trigger the next phase.”

On the bigger picture of the national car company in the local industry, he said Proton had done well considering its humble beginnings.

“I think it can achieve greater heights, complement and enhance the national automotive industry,” he said, adding that after all, Proton was part of the DRB-HICOM Group.

Currently, Proton is still an important business partner for DRB-HICOM, with almost 60% of its automotive revenue derived from business ventures with the national carmaker.

DRB-HICOM is the biggest distributor of Proton cars under EON Bhd, besides Proton Edar, and the group's manufacturing and engineering companies are all first-tier vendors to Proton, accounting for RM600mil to RM700mil worth of business.

He said he was not merely looking at acquiring the national car company per se as he felt that it was still subject to further fine-tuning.

“Proton is able to reach greater heights, and it all depends on how well you handle and manage it. It is capable with the technologies, expertise and products that it has now,” he said.

Khamil did not rule out further partnerships and collaborations with Proton even after the acquisition if it were successful.

“The paradigm shift for DRB-HICOM is to have strategic partnerships and collaborations with our partners. We must never be shy and restrict ourselves by not asking for help. We cannot live within the constraints of our boundaries and say we are the best. We must end off with production and manufacturing,” he said.

Citing human capital development as an integral part of Proton, he said the group must invest in research and development and not merely rebadging cars.

Meanwhile, over the weekend, a business weekly reported that more suitors were vying for the Proton stake, with the latest being businessman Tan Sri Arumugam Apavoo Packiri and Gerald Lopez of Genii Capital.

Arumugam is said to be an associate of former prime minister Tun Mahathir Mohamad, who is currently the adviser to Proton.

It is speculated that the duo are looking to rope in a former chief executive officer of Proton who helmed the company from the mid-1990s to 2004.

Related:

RELATED

» DRB- HICOM best suitor for Proton stake, says research house

TEST DRIVE/Close up: Proton Exora 1.6CFE BOLD Premium

TEST DRIVE/Close up: Proton Exora 1.6CFE BOLD Premium

In this blog entry, I'm posting a test drive and Close up of Proton Exora 1.6CFE Bold Premium.

Note: Before I start this review, I'm sad to say that the "Tentative" RM79,998 OTR Price had been revised.  Add RM1,500 across the board.

I’ve test driven them last week, though it's a Short 10km ride. Well, I can't say much, but it feels great at the lower rev range especially from 2k RPM to 4k RPM.   This is good for normal road driving condition. 

But when i go into my ‘race-mood’, i floored the accelerator. It was only then I felt a little disappointed. I mean, it surges for a while within the lower rpms, and then stays ‘flat’. Its as though the car’s telling you, ‘lets just stay at this pace, we had enough’. Overall, I would say that its good as a 7 seater FAMILY car. 

The interior feels a bit better than 1st generation Exora.. meter cluster is much nicer than in picture.. the illumination is very nice to look at and steering wheel grip also feel more solid.  The sound insulation is much improved.  This is evident when closing the door. "KLUMPH"  It has a much more “premium” feel to it.

It's a very nice driving experience even just on a short 10km route (just managed to drive a few start-stops, a hill climb, and a short highway cruise).. love the “jet turbine” sound effect (faint while with windows up) of the turbo when rev above 2k rpm until 4k rpm. It's very addictive though some might find it annoying.  When driving in SAT mode, the Exora CFE was very quiet and smooth (6 ratios feel).

Ride and handling's impressive.  Lotus did a very good job, limited bodyroll at cornering and went over potholes and glide over speed bumps like "selamba aje!".  

The pick-up power definitely were unbeatable in its class.  0-100km/h is SLIGHTLY BETTER than the Claimed 11.3secs.  It feels more like 10 seconds.  I'd like to give thumbs up to Proton and Lotus for the major improvement on the engine, and NVH.

This is a Fully loaded car with 1.6 CFE engine producing 138ps and  205Nm@2000-4000rpm torque! (Better than Chery Eastar 2.0 (130hp/180Nm) and Innova 2.0L 136hp/182Nm), CVT Gearbox with SAT, Rear discs brake with ABS+EBD+BA. auto cruise, car-like rear suspension,  GPS (Portable), Ceiling mounted DVD-Player, reverse Camera, Rear air-cond control,  2nd+3rd row blowers,  Clarion 6 speakers ICE with Bluetooth and USB/Aux, Leather seats, 205/55R16 rims and tyres. Priced to seduce you: RM79,998 OTR (Add RM1500 from 3 Jan Onwards). What more can you asked for?  

All these features put its ASEAN and China made "old tech" Competitors into Shame, SINGLE Airbag(!) (Avanza and Innova), truck suspension (Avanza and Innova), 4AT GB (Avanza and Innova) and timing chain (Avanza, Innova, G Livina)…  Yet some salesman claimed timing chain is hi-tech…

The power and torque figures produced by 1.6L CFE actually surpasses many 2.0L NA engines namely Chery Eastar (130hp/180Nm) and Toyota Innova (136hp/182Nm). Turbocharged CFE should be treated as a 2.0L equivalent. 

Overall, it is the BEST choice compare with Innova, Avanza, Eastar and Grand Livina…  In short, it is the BEST choice for MPV below RM100K…  

Well there's a saying a picture's worth 1000 words...  Here are the photos...

Above: Front looks very European.  Vauxhall comes to mind.  Below: Nice Smoked rear lights combination 1st seen in Saab 9-3 Combi.

Above: Stylish 205/55R16 new alloy rims and GT Radial tyres. 

Above: Excellent 3rd row headroom. Below: Poor 3rd row legroom (I am 5 feet 9 and 92kg).  2nd row can't slide (fixed).  This is better than ALL below RM100k MPV bar the Innova E.  Overall it is EQUAL legroom to Chery Eastar, Honda Stream, Peugeot 5008/Citroen C4 Picasso and PAWNED Mazda 5, VW Cross Touran and Citra Rondo (Both Head and Legroom) 

Above, the CVT Module.  Below, the lightings (Dashboard) and White dash meters.

Above: Limited boot space with 3rd row seat up.  Below: Reverse Camera

Above: Leather wrapped steering wheel with Auto-cruise and Audio controls.

The ABS Module.

 EXCELLENT Boot space when 3rd row not in use.

 Check out Proton new slogan: COMMITTED TO BE BETTER.  We'll see about that!!!

Finally my Parting shot:

If you want to buy this car, Call me, Jeff for better deal.  012-6852-718.  I shall refer you to 3 of my BEST Service salesman...   1 in Taman Megah, 1 in Mutiara Damansara and 1 in Penang.  An Original Jeff Lim's production, my Original work.

SEAT: Someone pls bring these to Malaysia

In this blog entry, I'm posting about SEAT.  SEAT is a VW Group car manufacturer based in Spain.  The name SEAT, previously standing for the acronym Sociedad Española de Automóviles de Turismo (Spanish Touring Car Company, in English), in 1990 was changed to SEAT, S.A..  It's founded in May 1950 and Headquartered in Catalonia, Spain.

I like their slogan: "If you tried it, you'll buy it!"

Here are sneak peek of what they offer in UK (RHD):
 http://www.seat.co.uk/content/uk/brand/en/models/seat-range/seat-range.html

Me like the Audi A4 B7 based EXEO 1.8TSI 160hp (Pic above) and EXEO ST (Avant), VW Sharan based Alhambra and Ibiza 5 dr 1.2TSI. 

What say you?  Do you think this Brand can sell in Malaysia?

Anyway, more info and background of SEAT:
http://en.wikipedia.org/wiki/SEAT

Happy New Year 2012!

Happy New Year 2012!!!

This year, 2012 is a special year as it's a Leap year.  Ie. 366 days. 

I am also looking forward to:

1) London 2012 Olympics

2) EURO 2012

3) Our Malaysian General Election (Rumoured March)   among others...

4) Launching of New Proton Tuah


Before I sign off, here's a Nice Taipei 101 fireworks video:


071231 New Year's Fireworks in Taipei, Taiwan -... by 88hawaii


Happy New Year 2012 again, From Jeff Lim/Otoreview.

Year of the Dragon poised to be an exciting year

KUALA LUMPUR: The local car industry is set to shift into high gear in 2012 despite having gone through a roller-coaster ride this year.


Both the national and non-national car companies have announced exciting model launches, facility and network expansion as well as upgrading programmes.


Some have received enquiries and bookings ahead ofthe Chinese New Year on Jan 23-24, 2012.
Proton Holdings Bhd will launch the new global car, P3-21A, in the first quarter of 2012 and two new variants of multi-purpose vehicle Exora by the second week of January.


UMW Toyota Motor Sdn Bhd plans to unveil a few models for both Toyota and Lexus, while Naza Kia will accept bookings for its new Optima K5 in January.


Naza Kia will set up its second 3S (sales, service and spare parts) outlet -- Kia Red Cube -- and upgrade 27 existing outlets to incorporate its new identity.


Perusahaan Otomobil Kedua (Perodua) will ink a collaborative agreement with Proton on certain aspects early next year.  Perodua has revealed that both parties will make the announcement on the agreement either this year or next year.


On Khazanah Nasional Bhd plans to sell its stake in Proton to DRB-HICOM Bhd, most analysts reserved comments to await Khazanah's formal announcement.

Other factors that industry players need to keep close watch included the revision to the National Automotive Policy and exchange rates for the US dollar and yen.

The younger Malaysian population, which usually forms a large pool of first-time buyers, will propel the car industry towards achieving higher overall total industry volume (TIV).


Car analysts said effective business plans to tap growth opportunities, including strategies to cope with economic reality in view of Europe's debt woes and tight credit, are crucial.
Industry players and analysts expect TIV next year to record positive growth.

OSK Research Sdn Bhd said next year's TIV is expected to grow by 1.1 per cent on the back of a forecast gross domestic product growth of 5.2 per cent.
RHB Research Institute forecasts TIV to remain relatively flat at 607,000 units in 2012 versus 2011, which is estimated at 604,000 units.
MIDF Amanah Investment Bank Bhd predicts the TIV to grow by 0.5 per cent to 611,140 units from 608,100 units estimated this year.


Naza Kia expects sales volume to remain flat next year in view of the coming general elections and said that "maintaining sales at the current level is good enough for next year."


In 2010, the TIV hit a record 605,155 units, an increase of 12.7 per cent compared with 2009's 536,905 units.


As for this year, the Malaysian Automotive Association (MAA) forecasts industry sales to hit 608,000 units.
The market saw a momentum driven by stronger purchasing power and higher demand from customers this year but faced several challenges like earthquake and tsunami that hit Japan in March and the flooding in Ayutthaya, Thailand in the third quarter of the year.


As a result, some delays were seen in the launch of certain models and delivery of spare parts for companies like UMW Toyota Motor and Honda.


With 2011 turning out to be the year best forgotten by the car industry, most analysts agree that the parts production and delivery are nearly back to normal.


Total vehicle sales rose by 8.6 per cent to 48,702 units in November, from the 44,845 units sold in the same month last year.


According to MAA said sales volume for December is expected to moderate further, due to the preference of customers to wait and take delivery of 2012 production year stocks.
-Bernama

Driving schools to introduce automatics in stages

Driving schools to introduce automatics in stages

Source (Click me)

PETALING JAYA: Driving schools welcomed the move to introduce lessons for automatic transmission cars which will be implemented in May.

Malaysian Driving Institute Association president Mat Aris Bakar said it was a good move as there are more automatic transmission cars now.


“We are waiting for the announcement from the government,” said Mat Aris, who is also the managing director of Metro Driving Academy.


Mat Aris said driving schools will likely introduce automatic transmission cars at their schools in stages as it would involve a lot of cost to purchase them.


“Driving lessons for automatic cars will be more expensive than manual cars as their price and maintenance costs are higher,” he said.

The association has 130 members nationwide.


Deputy Transport Minister Datuk Abdul Rahim Bakri told Bernama that the automatic transmission driving licence will be implemented nationwide in May, when the new revised driving curriculum is expected to be in place.


Those who learn and take tests in automatic cars will be issued an automatic transmission driving licence and will not be allowed to drive manual cars.


However, those holding the manual transmission driving licence can drive automatic transmission cars.
The revised driving curriculum will introduce more safety driving elements and was mooted to produce more disciplined and ethical drivers.

Car and Driver 10 best cars 2012

In this blog entry, I'm reporting Car and Driver 10 best cars for 2012.  Here are the lists + Videos:

Further readings:
http://www.caranddriver.com/features/2012-10best-cars-feature
http://www.caranddriver.com/features/2012-10best-cars-feature-2012-audi-a6-a7-30t-quattro-page-2
http://www.caranddriver.com/features/2012-10best-cars-feature-2012-bmw-3-series-m3-page-3
http://www.caranddriver.com/features/2012-10best-cars-feature-2012-cadillac-cts-v-page-4
http://www.caranddriver.com/features/2012-10best-cars-feature-2012-ford-focus-page-5
http://www.caranddriver.com/features/2012-10best-cars-feature-2012-ford-mustang-gt-boss-302-page-6
http://www.caranddriver.com/features/2012-10best-cars-feature-2012-honda-accord-page-7
http://www.caranddriver.com/features/2012-10best-cars-feature-2012-honda-fit-page-8
http://www.caranddriver.com/features/2012-10best-cars-feature-2012-mazda-mx-5-miata-page-9

http://www.caranddriver.com/features/2012-10best-cars-feature-2012-porsche-boxster-cayman-page-10
http://www.caranddriver.com/features/2012-10best-cars-feature-2012-volkswagen-golf-gti-page-11

That's all folks, thanks for having the time and patience to read this blog entry.

Honda Thailand scraps over 1,000 flood-damaged vehicles

Honda Thailand scraps over 1,000 flood-damaged vehicles

BANGKOK: Honda began destroying 1,055 cars in Thailand to reassure customers that no vehicles damaged in the country’s recent flood crisis will ever be sold.

 

The scrapping process at Honda’s plant in the central province of Ayutthaya is expected to take one month, the company said in a statement.

The plant is located in the Rojana Industrial Park, where heavy flooding in early October brought production to a halt and aerial pictures showed hundreds of new cars submerged in muddy water.
“While we were able to relocate many new cars that were awaiting shipment to a safe area, 1,055 vehicles that remained in the plant were finally damaged by the flood,” said Pitak Pruittisarikorn, executive vice president of Honda Automobile Thailand.
Most of the cars to be scrapped are mid-sized City sedans and Brio and Jazz hatchbacks. Production has yet to resume at the factory.
Thailand said earlier this month that over 700 people died in the floods, which at their height affected 65 of the 77 provinces in the low-lying nation and forced the closure of seven major industrial parks, disrupting global supply chains.

-AFP

Touchscreen devices in cars linked to higher accident risks

Touchscreen devices in cars linked to higher accident risks

CANBERRA: Other devices are being singled out alongside the cellphone as being linked to distracted driving accidents.
This time, they are portable touchscreen-based devices in cars, whether they be mp3 players, smartphones, GPS or PDAs.

Above: My dad's MYVI 1.5 SE with "High risk" touch screen Multimedia navigation player.

A research team from the Monash University Accident Research Centre of Australia, led by author Kristie Young, analysed the impact of using touchscreen devices on driving skills.
Young and her team assessed the ability of 37 people to stay in their lane and stay a safe distance behind another vehicle while searching for songs in a list of tunes on an iPod Touch device by using computer driving simulations.
"The devices often have really small text or their menu structures are quite complex, and drivers have to spend a lot of time to find a particular item," said Young.


"When drivers' eyes are off the road, they miss the visual cues from the road environment to make micro-corrections to their steering to stay on the correct path and also to maintain a safe distance from the lead vehicle," China's Xinhua news agency quoted her as saying in a statement.
The main problem with portable devices being brought into cars is that they are not designed primarily for use by drivers, said Young, adding that these devices use scrolling mechanisms and finger flicks to locate songs on a touchscreen.
Without any tactile feedback, drivers need to look at the device to keep track of where they are up to in the task, and the short glance back to the roadway might not be sufficient.


"The heading and following errors build up and become more increased over time because they aren't making those adjustments that they need to stay on the correct path."
The researchers found that the drivers not only have their eyes off the road for a significantly much more time, they were also more likely to veer off the center of their lane, and misjudge the distance to the car in front.

To compensate for the distraction, drivers tended to slow down and take more frequent glances at the device.
However, Young pointed out that such action is not a safe strategy.
According to the research, over 40 percent of drivers own a portable music player will use it while driving with half of them being young drivers.
Young said previous experience showed that younger drivers are more likely to engage in distracting activities.
The impact of that distracting activity is likely to be greater on driver performance because they lack the level of driver experience and skill to handle those increased risks.
It is reported that better integration of touchscreen devices into car systems and deploying system lock outs, where only a limited number of functions are allowed while the car is moving could help in reducing the risk.
Young suggested that "enter your destination details [on your GPS] before driving off, load up playlists before driving would help a lot."
The finding was published in the journal Applied Ergonomics.

-Bernama