Happier times with the 1985 Proton Saga | Image: MalaysiaZine.blogspot.my
International Trade and Industry Minister Datuk Seri Mustapa Mohamed told Parliament that Proton has received a cumulative RM 13.9 billion in aids of various forms since its inception and as of 7 June, the government has injected another RM1.25 billion into Proton Holdings Bhd (PHB) by subscribing to new redeemable convertible cumulative preference shares (RCCPS). That makes the grand total a whopping RM15.15 billion, with RM25 million still on the way. Want to know what RM15.15 billion looks like?
Visuals are provided based on denominations of USD100. Image: WTFNoway.com
The share purchase is part of the RM1.5 billion soft loan approved by the government in April that we wrote about previously in which we propose our action plan for Proton. In other related news, in May, DRB-Hicom posted net losses of RM991.90 million, down from earnings of RM300.19 million a year ago. According to reports in The Star, DRB-Hicom has attributed this loss to Proton and if Proton's results were excluded, the group's performance for FY16 was commendable.
The report ends with an assurance by DRB-Hicom that Proton's turnaround was on the way. Now that RM1.25 billion was in hand, the second phase of the plan will begin, starting with the launch of the new Perdana, Persona, and Saga; there's also plans for a new model in collaboration with Suzuki. On top of that, it seems like Proton has officially reentered the Chilean market and plans to sell 1,000 units of Preves by end of 2016.
Check back later this year to find out if Proton's gamble in Chile and its ever expanding plethora of cars has helped our national car maker bounce back.