Sunday, June 10, 2007
proton bleeds
Can you imagine Proton Top Brass go to New York to negotiate with VW? Is Proton so desperate needing a foreign partner to pull the company out of its own failure? It is the management and the board of proton should change. I think the whole BOD should go. Many people talked about Mahaleel about the bad services and lack of quality control on the cars but many people never gave him credit that he kept so much money in Proton's coffer of about $2 billion cash before he was forced to resign. In business one has to keep a winning team otherwise it is a losing business. Now that he had gone, Proton hasnt done any better. On the results since then, the losses had drained the company cash pile. Cash flow as every one should know is the life blood of a company. You can make losses but the company must have cash in its coffer. Without prudent management of cash flow, a company can die prematurely. (Like Renong once declared years of profits but when the financial crisis hit the country in 1997, the company collapsed. The government since then had bailed out the company and took it private now) Now Khanazah BOD is running thinking the shares held would lose its value which is about 43% of Proton shares. Go to New York to negotiate? For business and holidays most likely..........end of the day, Proton will bleed. To me it is better to give it to Naza Motors....I am looking at what Naza done for its business. The company is aggressive marketing itself as the premier motor industry player...assembly plants in Gurun, Batu Kawan (maybe by end of this year...........?) and marketing into the Indian market (another plant in one of the areas in India...) I think Naza is tuning into the market with its marketing line ups........Do we have to go that far? It is the BOD who didnt do a good job..........this is where Proton failed miserably.
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