Let us give Geely-Proton a chance to work

PROTON has many woes and requires a new partner to provide it with new skills and new markets for its products.

It still keeps its brand name and control of the company by retaining 50.1% equity in the new venture.

Many large corporations join hands in sharing their skills and expertise for mutual benefits.

Airline companies have code sharing for mutual benefits. The automotive industry is highly competitive and requires volume to be cost effectiveness to compete.

It is only with the right volume that a automotive company will have the necessary funding to have R&D.

With the right market size, the automotive company will be able to have more platforms to develop new models and new products necessary to expand into new markets and to expand the existing market share.

Geely Holding Group Co not only offers Proton the opportunity to tap into the huge Chinese market but the opportunity to tap the huge Asean and other markets in other developing countries.

Proton will enjoy new technology not only from Geely but also from Volvo, a long established automotive company with vast experience and technology in many aspects of automotive manufacturing.

Volvo is also a major and established heavy vehicles manufacturer and the growing demand for such vehicles in Asean countries may lead to Proton tapping into this by manufacturing such vehicles in Malaysia.

In other words, the new venture not only takes Proton out of its woes but will also offer it unlimited opportunities.

Proton cannot afford to remain in its previous position. It is not right for the government to continue to pump in billions of ringgit of taxpayers money to support Proton if there are no indications that it will be turning around to be profitable in future.

Similarly, it took us years to realise that we require foreign expertise to run Malaysia Airlines and this was only after a large amount of taxpayers’ money was lost.

MAS is now being steered in the right direction by two foreign CEOs. It is acquiring new planes and is expected to regain its past glory as a premier airline company in this region.

At times, we need to accept the reality and accept arrangements that are mutually beneficial to us even though foreigners or partners are involved.

The Proton and Geely venture is a win-win one for both parties. It is totally unfair to criticise the new venture in its infancy.

We hope that all Malaysians will give their full support to the new venture to ensure its success.

We hope that Proton will also become a major automotive company in the world in future. THOMAS FOO Subang Jaya