International Business & Economy Geely feeling the pain of the 49.9% deal at Proton

Geely feeling the pain of the 49.9% deal at Proton

Author

Date

Category

- Advertisement -

Zhejiang Geely Holdings Group that inked a definitive agreement under which it acquired a 49.9% stake in Malaysia’s national car manufacturer for RM460.3 million – a peanut amount indeed – is facing growing pains at Proton.

Sources revealed the Chinese automaker is now feeling the difficulties of being a minority partner – since the 49.9% does not make it a majority partner – in the Malaysian company.

The source told TISG Geely is on the brink of rescinding on the deal if it does not gets its way in running the affairs at Proton, a company that has the reputation of ‘offending’ its foreign counterparts.

Crony Capitalism

- Advertisement -

The source said Geely is now facing the full brunt of crony capitalism – not that it is not a crony corporation from China – but the Proton’s edition of crony capitalism is deeply entrenched.

To the point that the Chinese corporate leaders are having a nightmarish time decoding and understanding the way Proton functions.

Given the fact that Geely is practically giving away its Boyue sports utility vehicle (SUV) platform to Proton for a meager RM290 million, it is apparent that it will not have full control of the operations.

Vamos Geely or Kaput

Most analysts say Geely will need two years to see a Proton turn around, this if things go well after it acquires the brand.

And things are not going well to the point that the government of PM Najib Razak allegedly ordered Proton to stifle the matter before it goes public.

It is said Geely is facing the same issues that Volkswagen, the troubled German brand experienced at Proton.

Volkswagen did make a pass at Proton in the past, attempting to acquire a majority stake in the local company, but the bid failed after the Germans discovered how crony capitalism works.

It apparently offended the Germans so badly that they pulled out of talks and moved away from the Proton car maker in a subtle manner.

Reportedly, the culture of having tea at 10 am in the morning, lunch at 12.30 which is then followed by prayer times for the workforce and a check-out time that is no better than the bloated civil service workforce in Malaysia, forced the Germans to call it ‘Kaput’.

Those incidents took place at a time when Tun Mahathir Mohamad – the genius behind the brand – was on a long leave of absence, attempting to end the wars in Gaza and criminalising wars across the globe.

Mahathir then returned to Proton for a brief period, getting it moving again, but since the elderly statesman became an opponent to Najib, it appeared that Proton’s fate also took a dip.

And this is how crony capitalism can be contagious.

 Follow us on Social Media

Send in your scoops to news@theindependent.sg 

- Advertisement -

Annie Yi says whichever parent earns less must stay at home to care for their daughter

Taipei -- Annie Yi is known to be frank with her words. Netizens have been offended by Yi's brutal honesty but that does not stop her from speaking her mind. On the latest episode of talk show Be With You, Yi spoke up...

Videos of car lot snatchers go viral, motorists confirm it’s not uncommon

Singapore – The topic of car park snatchers became viral online after videos of recent incidents were shared on various Facebook pages. "Recently, there have been more ill-mannered drivers who insert their car ahead of those waiting for their lot," wrote Facebook...

Domestic helpers film TikTok videos, neglect elderly and child at Bukit Batok playground

Singapore – Five foreign domestic helpers were spotted neglecting their duties in caring for the elderly while they filmed TikTok videos. A group of domestic helpers at Bukit Batok Street 25 were filmed dancing for TikTok videos at a playground, leaving the...
Follow us on Social Media

Send in your scoops to news@theindependent.sg 

Theindependent