PROTON And Nissan Agree To Conduct Feasibility Study

SUBANG JAYA, 2 March 2011 - PROTON Holdings Berhad announced that the Group has signed a Memorandum of Understanding (MOU) with Nissan Motor Co., Ltd. to jointly conduct a feasibility study to assess new opportunities aimed at further strengthening mutual competitiveness in the global marketplace. 

Based on this understanding, and upon evaluating the results of a three-month feasibility study, PROTON’s next generation vehicles will incorporate select technologies and manufacturing expertise from Nissan. 

“This study we have agreed to do will focus purely on technology sharing, and in the pursuit of global competitiveness, the strategy of sharing technologies and platforms has today become an important and cost-effective process for all global car manufacturers,” said PROTON Holdings Berhad Group Managing Director Dato’ Haji Syed Zainal Abidin Syed Mohamed Tahir. 

“It significantly reduces the time required to develop new products, extends tremendous cost savings in terms of development, and provides greater flexibility in being able to spin off a variety of vehicles from a common set of components,” he added. 

“Successful collaborations between car manufacturers today are as a result of not only the mutual exchange of technology, knowledge and expertise, but also the capitalization of common manufacturing facilities, supplies as well as sales and distribution networks. This will accelerate the launch of PROTON’s next generation of vehicles and models that are being designed to appeal to a more diverse and broader market segment both domestically and abroad.”

Article sources: proton.com

Proton next gen cars to have Nissan tech

Kuala Lumpur: Proton Holdings Bhd Wednesday said its next generation vehicles will incorporate select technologies and manufacturing expertise from Nissan Motor Co. Ltd following a feasibility study.

Proton and Nissan signed a memorandum of understanding (MoU) to jointly conduct a feasibility study to assess new opportunities aimed at further strengthening mutual competitiveness in the global marketplace.

"This study will focus purely on technology sharing, and in the pursuit of global competitiveness. The strategy of sharing technologies and platform has today become an important and cost-effective process for all global car manufacturers," Group Managing Director Datuk Syed Zainal Abidin Syed Mohamed Tahir said in a statement Wednesday.

With this, Proton would be able to reduce the time required to develop new products, extend tremendous cost savings in terms of development, and provide greater flexibility in being able to spin off a variety of vehicles from a common set of components, he said.

"Successful collaborations between car manufacturers today result not only in mutual exchange of technology, knowledge and expertise, but also the capitalisation of common manufacturing facilities, supplies as well as sales and distribution networks.

"This will accelerate the launch of Proton's next generation of vehicles and models that are being designed to appeal to a more diverse and broader market segment both domestically and abroad," he added. - Bernama

Proton has funds for Lotus revamp: Dr M

Proton Holdings Bhd has sufficient funds in its coffers to help in Lotus Group International Ltd's restructuring plans, says former Prime Minister and Proton adviser, Tun Dr Mahathir Mohamad.

"I think we have sufficient funds to inject into Lotus Group if necessary," he told reporters today after a working visit to the tooling plant of Miyazu Malaysia Sdn Bhd here.

The group recorded a net loss of RM60.1 million for its third quarter ended Dec 31,2010, due mainly to higher branding costs and restructuring expenses incurred by its sports car division.

"We have to restructure Lotus Group and need to introduce new models. In the meantime, we cannot make a profit. We hope within two-three years when we introduce new models, we will do better," he said, adding, Proton as a whole did not lose money.

In the third quarter of last year, the group registered a net profit of RM79.68 million.

Analysts had earlier slashed their forward forecast on worries the group''s expensive effort to revive the British sports carmaker, Lotus Group International Ltd, would bleed the national carmaker dry.

However, Proton Group Managing Director Datuk Syed Zainal Abidin Syed Mohamed Tahir said the group believed that the financial performance in the third quarter was a small setback.

"We are still positive on our fourth quarter outlook," said Syed Zainal.

He believed that Proton Holdings would still be able to better its financial year ended March 31, 2010 results.

"For the time being, we will utilise whatever models that we have to expand the Lotus Group, through more sales and creative marketing," he said.

Meanwhile, Miyazu Chief Executive Officer Amrizal Abdul Majid said the company plans to invest RM100 million for equipment, facility and training in the Tools, Dies and Mould (TDM) initiative for the next five years.

It will also set aside RM50 million for the Hot Press Forming (HPF) new plant building and equipment which will be operational in February next year.

Miyazu, an automotive dies and moulds designer and manufacturer, is a collaboration between Proton Holdings, Miyazu Seisakusho and Sojitz Corporation.

The company now supplies TDM to automotive Original Equipment Manufacturers (OEMs) like Toyota, Nissan and Honda.-- Bernama

Read more: Proton has funds for Lotus revamp: Dr M http://www.btimes.com.my/articles/20110301182301/Article/#ixzz1FMQOqFs2

PROTON’s Year On Year Profit Before Tax Drops To RM134 Million As At Q3 2010/11

SUBANG JAYA, 25 February 2011 - PROTON Holdings Berhad registered a lower profit before taxation of RM134 million in the first nine months of its 2010/11 financial year, down from RM248 million posted in the corresponding period last year. 

The decline in profit was largely attributed to higher costs including branding costs coupled with higher R&D expenditure. Additionally, the results also included restructuring expenses incurred as part of Lotus’s business transformation plan. 

At the Group level, higher marketing and selling costs, in addition to lower domestic sales volume experienced as competitors aggressively lowered prices during the seasonal and traditionally slower year-end demand, were primary contributors to the loss of RM52 million in Q3 2010/11 compared to the profit of RM81 million recorded in the immediate preceding quarter. 

Cumulative revenue as at 31 December 2010 rose to RM6.36 billion against RM5.97 billion recorded the corresponding period last year, while revenue for the individual period (Q3) dipped slightly to RM1.83 billion from RM2.01 billion the corresponding period last year. 

With regard to Lotus, part of the board-approved Lotus’ business transformation plan entails a major branding exercise at various international motor shows and a restructuring exercise which includes investment on new product development, management reorganization and rationalization of its dealer network. 

However, PROTON Group Chairman Dato’ Sri Mohd. Nadzmi Mohd. Salleh said the company is confident that its current strategy built on the principle of offering the right car, at the right price for the right market segment, will enable it to continue to capitalize on growing domestic sales. 

PROTON’s performance in the final quarter of the 2010/11 financial year is expected to put the company back on its growth trajectory and this is supported by higher sales in January 2011 due to the delivery and introduction of the Inspira and Saga FL. 

PROTON sold a total of 157,274 vehicles in 2010, with 15,805 units sold in January 2011 amidst the backdrop of a vibrant domestic car market that had grown 13% in 2010. The Malaysian Automotive Association (MAA) reported that the total industry volume (TIV) reached 605,156 units in calendar year 2010 with registration of passenger vehicles alone accounted for 543,584 units, an increase of 11.8%. The MAA is projecting TIV to increase by a further 2% while industry experts are saying growth in car sales may be as high as 4% in the calendar year 2011. 

“As for Lotus, higher expenditure is expected as the company is undergoing a restructuring exercise, but we are confident that the restructuring plan is making good progress. This is further supported by future plans which includes more efficient spending, continuous manufacturing efficiency and a consolidated marketing strategy, which is mainly to instill greater public awareness of new models,” said Dato’ Seri Mohd Nadzmi. 

“The Group will continue to improve operational efficiency through continuous vendor and dealer network rationalisation as well as various cost-cutting initiatives whilst at the same time investing in the development of new models, variants and technologies. On top of that, we continue to monitor our export performance closely and remain flexible in our strategic approach to suit the demands of our international clients. Holistically, PROTON remains committed to efforts which can further enhance PROTON’s overall competitiveness and we are satisfied with our progress in that area thus far and hope to share this with our key stakeholders in the near future,” he added. 

On the international front, the popularity of Proton core models continue to grow, with Proton establishing itself as one of the top ten brands in Thailand. PROTON’s market share in Thailand is currently in eighth position for overall passenger car sale and tenth position for overall vehicle sales in Thailand for 2010. 

The Proton Exora was also recognized as one of the top ten cars of 2010 in Thailand and as the “People’s Multi-Purpose Vehicle (MPV)” by a prestigious English newspaper in Bangkok. Launched there in December 2009, shipment of the Exora to Thailand has reached 3,125 units with almost 2,700 cars already registered as at Feb 2011. In Japan, PROTON and Japanese Manufacturer Carrosser Co. Ltd. (CUSCO) recently entered partnership to sell the Satria Neo rally cars in the Japanese domestic market. 

PROTON Group Managing Director Dato’ Haji Syed Zainal Abidin Syed Mohamed Tahir said, “PROTON also remains committed to the development of its green technology in line with the Government’s initiative to make Malaysia a regional hub for hybrid, electric and environmentally-friendly vehicles. As part of this plan, the award-winning Proton Exora Extended Range Electric Vehicle (E-REV) and Saga Electric Vehicle (EV) are in the final stages of testing before being made commercially available.” 

“The Malaysian economy’s projected growth of between 5% and 6% will result in positive consumer sentiment, increasing domestic demand and further growth in the TIV. And together with efforts being undertaken by PROTON, we are poised to capitalize on a more vibrant economic landscape with the introduction of new models and enhanced variants in 2011,” he added.


Article sources: proton.com
Category: News & Event