Blog: Dave LeggettProton capacity for sale?

Dave Leggett | 28 November 2003

Interesting feature we've had in from Tony Pugliese looking at Proton. I hadn't realised the situation for the company had become quite so serious. Exiting the volume car making business altogether and selling its domestic manufacturing facilities could even be contemplated. Trade liberalisation has wrong-footed the company that traditionally enjoyed special privileges in the Malaysian market. The years of subsidy and tax breaks have left the company bloated and uncompetitive. Further decline looks certain. But Proton's assembly lines are said to be quite modern, so a car company feeling that it needs more capacity in southeast Asia may be interested in taking on some of Proton's capacity. Such a retreat might be politically difficult although now that Dr Mahatir is gone, maybe that is not such a big obstacle.


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