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  • NAJIB TELLS AUTO FIRMS TO MERGE IF THERE IS OVERCAPACITY

    Prime Minister suggests that our automotive company to merge to create a competitive company.Read the full news from Bernama below.

    NAJIB TELLS AUTO FIRMS TO MERGE IF THERE IS OVERCAPACITY.

    KUALA LUMPUR, July 9 — Prime Minister Datuk Seri Najib Tun Razak told local automotive companies to consider merger if there is overcapacity in the industry.

    In the 21st century, only innovative companies that are willing to make changes and possess sustainable business models would really succeed, he said at the Proton 25th Anniversary Gala Dinner here Friday night.

    “If overcapacity becomes an obstacle, there should be a process to merge automotive companies in our country to create a stronger, bigger and more able company,” he said.

    “I say this as a hint so that when we celebrate Proton’s 25 years of success, I also would like to remind us all that past success does not guarantee future success,” he said.

    Najib who is Finance Minister said he wanted to see the national car maker to continue to succeed the same way as its success since its establishment in 1983.

    “I want to see Proton as a company that really flies the flag of Malaysian success just like when Proton was born 25 years ago when the first Saga rolled on our road with pride.

    “So, we must make Proton the pride of Malaysia in the next 25 years,” he said.

    Present at the celebration was Proton Adviser Tun Dr Mahathir Mohamad who mooted the idea to produce the national car.

    Najib said the government would continue to assist Proton to ensure its future success.

    The prime minister said while economies of scale contribute to the ability of a company to compete particularly in the automotive field, Proton should also meet the expectations of customers and the market not only in terms of design and quality but also taste.

    Through Lotus’ restructuring process and the setting up of several strategic business units in Proton, the national car maker would be able to enhance its capability.

    “If the restructuring process happens, it will able to maximise all its skills and technologies and enable it to compete at a higher level,” he said.

    Among Proton’s biggest contributions to the national automotive ecosystem was its role in the creation and development of vendors.

    To date, 153 local vendors had received benefits and moved forward in line with the progress achieved by the company, Najib said.

    He said Proton was not just a business or an ordinary company but the country’s iconic effort to make changes not only terms of technology development but also the general Malaysian society.

    A total of 651 Proton pioneers were honoured at the dinner.

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