Business

Thursday November 22, 2007

No timeframe for Proton turnaround

By SIM LEOI LEOI




PUTRAJAYA: No specific timeframe will be given to the management of Proton Holdings Bhd to turn the national carmaker around.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said instead, the Government hoped its management would be able to keep its "momentum" going with more sales and enhanced quality.

"There is a business turnaround plan. They have not yet submitted to us a comprehensive programme about their plan to turn the company around but there is one.

"Of course, the plan is still a work in progress," he told reporters after presenting prizes to winners for the best decorated new village here on Thursday.

On the prices of Proton shares, which dipped to a seven-year low, following the news, he said it was normal for shares to fluctuate in a market environment and that the Government had no plans to consider taking the company private.

"What I have said remains. We are just giving the management the flexibility to carry on with their restructuring and the good work they are doing while bringing the company back to viability. There is no issue of privatisation," Nor Mohamed said.

He also denied that the Government's decision to call off negotiations for Proton between Khazanah and two major international car manufacturers - Volkswagen and General Motors - was politically motivated.

"There is nothing at all like that," he said.

However, Nor Mohamed declined to comment if the Government would continue to ensure some kind of protection for the car company.

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