Proton’s restructure, profits and expansion plans
Malaysia’s homegrown automaker Proton is in the process of restructuring, to become more competitive in a freer market and simplify collaborations with other companies. The company hopes to become more lenient and efficient in its strategic decision making, and will probably split into four separate business units to focus on manufacturing, R&D, and dealership issues. Units will be able to form alliances with external partners without involving the group as a whole.
Final details will be revealed after the Malaysian government approves the plans.
Proton hinted at its restructuring plans as it announced Q1 financial results for 2011: RM105 million (US$33.37 million) before-tax profit, a substantial jump from RM13 million in Q4 2009 and beating the RM64 million of Q1 last year. Efforts to rationalize the domestic dealer and support network account for much of the improvement, but exports are also up 88% on Q1 last year and the company is considering a move into China. Proton already operates in 29 countries.
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