• May 20th 2008 at 8:02AM
  • 5
The Malaysian government has decided to end its protection of Malaysia's Proton Motors. In addition to the import duties and taxes levied against foreign carmakers, Proton was also the recipient of tax breaks and "other government incentives."
The decision could be seen as a blow to Proton, but Malaysian Prime Minister Abdullah Ahmad Badawi is confident that the carmaker can and is turning itself around. Even though it has lost half of its market share while it was being protected by the government, Badawi said recently "No question of a bailing out. Proton is doing well today... they have a good program, they have secured exports to India, China, Indonesia and the Middle East."

For it's part, Proton's efforts to link up with a foreign car company didn't end well last year. For the moment, it has proposed that the government take an official stake in the company.

[Source: InsideLine]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 7 Years Ago
      Good luck with that proton, they sell protons here in Australia and they're terriable in every aspect.

      Cool a $15,000 car the size of most $25,000 shame it's worth $4,000 once you drive it off the lot.
      • 7 Years Ago
      I hope nobody tries to kill the prime rib of Propecia. I mean the prime minister of Malaysia.

      OBEY MY DOG!
      • 7 Years Ago
      Tip for Proton: hand all responsibility for design work to Lotus and just build what they tell you to.
        • 7 Years Ago
        Yeah, because Lotus has never gotten itself in financial trouble...
      • 7 Years Ago
      The government HAS an official stake in Proton. This is why Volkswagen's talks last year were conducted with the government's investment arm which is the majority shareholder.

      Anyway, this is likely to be all talk. The measures Abdullah quoted have already been in place for years, and nothing significant's changed in the auto industry here.
    Share This Photo X