Mustapa: Enough criticism over Proton-Geely partnership

PETALING JAYA: The move by Proton Holdings Bhd (Proton) to embark on a partnership with a China-based company should no longer be criticised as the choices presented were rather clear.

“To the critics of the ProtonZhejiang Geely Holding Group Co (Geely Holding) partnership, I say enough is enough.

“Proton is known globally as a Malaysian brand and nothing can take that away from Proton.

“Proton will have a foreign strategic partner moving forward but Malaysia still retains majority control,” said International Trade and Industry Minister Datuk Seri Mustapa Mohamed in a statement yesterday.

Mustapa said it was either Proton restructured its business with the help of a foreign partner or “we turn a blind eye” to the problems faced by the national car maker.

“At the end of the day, it is in the interest of Proton’s vendors, management and staff that must be prioritised above pride and nostalgia.

“Logic and common sense must prevail if we are to succeed in this rapidly changing global landscape,” said Mustapa.

Mustapa said the decision to partner with Geely Holding was made after taking into account a number of factors including benefits from Geely Holding’s technology, R&D facilities and injection of cash.

It was “very unfortunate”, said Mustapa, that the Government’s “sincere intention and unwavering commitment” of wanting Proton to succeed were labelled by former Prime Minister Tun Dr Mahathir Mohamad as an “act of vengeance”.

Mustapa also pointed out that joint ventures are the norm globally in the automotive industry.

Not many car makers can stand on their own feet, with examples such as Nissan-Renault and CherryJaguar Land Rover, said Mustapa.

He also questioned the point of maintaining “national pride” as claimed by Dr Mahathir if it means letting the company “continue bleeding cash” and jeopardising the welfare of its workers.

“Furthermore, to repeat the allegation that we are sacrificing national pride, is pointless as evidenced by the Perodua-Daihatsu partnership and many other joint ventures,” added Mustapa.

Mustapa also refuted claims that the Government has not disbursed the RM1.5bil soft loan funds promised to Proton in April last year.

He said from the total soft loan, the Government has disbursed RM1.25bil to Proton that was largely used to settle outstanding payments to its vendors.