Proton Negotiation with VW

It has been so long since negotiation between Proton and Volks Wagon Group first took place. Why until today there's still no solution to it? Is it really that difficult to find a partner to coorperate with? I suppose there are more inside news that we, Malaysian citizens don't know.

As rumour flying around stated, Proton is willing to sell its 51% shares to VW Group, and they also agree on buying it at the agreed price. Why would it fell apart at the last hurdle yet again? It is because current CEO and its management staffs unwilling to handover the full control right to VW group, who is the major share holder after takeover bid goes through. They, Proton agree to sell 51% stakes to VW, yet they want the control of its operational right.

How silly that such idea was voiced out. Who on earth would agree to let a minor share holder gain control of the group? If yes, I think VW group is more than happy to reverse the role and take control of its operational power with only 49% stakes against Proton's 51%. Will Proton agree to that?

Another fact is, I guess the Malaysian pride. Proton is facing with such huge debts, that they would eventually face the close-down! Yet they still think they hold the Ace card with them by requesting such irrational, silly and stupid suggestion. They should not forget that our neighbour contries, like Indonesia and Vietnam are more than happy to land a helping hand to VW group should their deal with Proton fell through, and this has given VW group more options than just Proton in Malaysia, to break through SE Asia market with their product. Let's not forget that market in other SE Asia countries are better than Malaysia, and the only advantage Proton hold is they have an existing assembly plant here.

I believe VW group would rather spend a little more money to set up an assembly plant else where, where they have total control of the factory and operations, rather than keep negotiating deals with Proton. If Proton really willing to Joint Venture, they would have done it long ago with other manufacturer like Mitsubishi. In turn, Misubishi sold all their stakes in Proton. What does this indicates? You and I know the reason

For this case, if you still remember or came across British car manufacturer, Rover, a similar scenario is happening here right now, and I'm affraid Proton is slowly following the footsteps of Rovers now. Rover has been supported by British government since BMW sold all its stakes back to UK Government, and after few years of heavy losses, UK Govt finally let go the huge burden of around GBP 600 million yearly, and let it go bankrupt! Here we see a similarity - Proton also have a lost of 600 millions yearly, but in Ringgit Malaysia. So how long more before Proton will ended up like Rover is beyond our guessing, but if no immediate improvement sure Proton will go burst very soon unless Malaysia Govt willing to use more of our hard earned money to save their PRIDE!