KUALA LUMPUR (Mar 2): DRB-HICOM BHD [] has been urged by Tun Dr Mahathir Mohamad to transform PROTON HOLDINGS BHD [] and look at ways to reverse the current fiscal losses.
In making the call, the former premier and adviser to the national auto maker said the new management after the takeover, scheduled to be completed this month, has to bring the national automotive company to its old glory.
"Obviously, you (DRB-Hicom) need to beef up the organisation, examine all the losses to see how you can reimburse the losses.
"Generally, the new company will have to look at all aspects of management of Proton as it is weak in all angles," Mahathir told Bernama in an interview.
The national car maker's pre-tax loss widened to RM84.054 million for the third quarter ended Dec 31, 2011 compared to a pre-tax loss of RM51.535 million in the same period in 2010.
Revenue for the period also decreased to RM1.432 billion from RM1.833 billion previously.
Turnover for the first nine months also dipped to RM5.92 billion from RM6.36 billion on the back of a RM36.530 million loss before taxation against a pre-tax profit of RM134.3 million recorded in the corresponding period in the preceding financial year.
On the new Proton chief, Mahathir said it is up to DRB-Hicom whether to name a new successor or to retain the old management.
Asked whether Proton can regain its glory with the old management under a new parent, Mahathir said: "Obviously, there might be some new inputs from DRB-Hicom. For sure it is not just going to buy Proton and leave it as it is."
He added the profitability aspect was lacking from the current management under the leadership of chairman Datuk Seri Mohd Nadzmi Mohd Salleh and group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed.
"Well, they (Proton) are not making a profit. Business must make profit. So we must find out why they are not making profit," Mahathir said.
In January 2012, DRB-Hicom struck a deal to buy Khazanah Nasional Bhd's 42.7 per cent stake in Proton for RM1.29 billion or RM5.50 per share.
DRB-Hicom is expected to officially take Proton private later this month, after the completion of certain take-over codes and regulations. — Bernama
In making the call, the former premier and adviser to the national auto maker said the new management after the takeover, scheduled to be completed this month, has to bring the national automotive company to its old glory.
"Obviously, you (DRB-Hicom) need to beef up the organisation, examine all the losses to see how you can reimburse the losses.
"Generally, the new company will have to look at all aspects of management of Proton as it is weak in all angles," Mahathir told Bernama in an interview.
The national car maker's pre-tax loss widened to RM84.054 million for the third quarter ended Dec 31, 2011 compared to a pre-tax loss of RM51.535 million in the same period in 2010.
Revenue for the period also decreased to RM1.432 billion from RM1.833 billion previously.
Turnover for the first nine months also dipped to RM5.92 billion from RM6.36 billion on the back of a RM36.530 million loss before taxation against a pre-tax profit of RM134.3 million recorded in the corresponding period in the preceding financial year.
On the new Proton chief, Mahathir said it is up to DRB-Hicom whether to name a new successor or to retain the old management.
Asked whether Proton can regain its glory with the old management under a new parent, Mahathir said: "Obviously, there might be some new inputs from DRB-Hicom. For sure it is not just going to buy Proton and leave it as it is."
He added the profitability aspect was lacking from the current management under the leadership of chairman Datuk Seri Mohd Nadzmi Mohd Salleh and group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed.
"Well, they (Proton) are not making a profit. Business must make profit. So we must find out why they are not making profit," Mahathir said.
In January 2012, DRB-Hicom struck a deal to buy Khazanah Nasional Bhd's 42.7 per cent stake in Proton for RM1.29 billion or RM5.50 per share.
DRB-Hicom is expected to officially take Proton private later this month, after the completion of certain take-over codes and regulations. — Bernama
