Time is right to consolidate Malaysia’s auto industry
A round of Malaysian auto industry mergers could be on the horizon with Proton’s Managing Director, the Prime Minister and the president of the Malaysia Automotive Association (MAA) all suggesting it’s time for a consolidation. Number one producer Proton has just celebrated its 25th anniversary, has produced over 3.3 million vehicles and employs over 30,000 people. Although it has surpassed its own targets and sold 156,653 vehicles this year, its manufacturing facilities are reported to be underutilized and actually capable of producing a million cars per year. Under these circumstances, it might seem to have more to gain from a merger than some of the smaller companies. Statements from the government, however, appear to support such a move: Prime Minister Najib Razak commented that only innovative companies who were willing to make changes could succeed in the 21st century.
source & article: Bernama (via Business Times)
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