KUALA LUMPUR: Proton Holdings Bhd's manufacturing unit has received its research and development (R&D) reimbursement grant of RM1.1bil on Friday, which is the latest positive news for the loss-making national car maker.
DRB-Hicom said Perusahaan Otomobil Nasional Sdn Bhd (PONSB) had received the reimbursement grant for the R&D activities in line with the government's policies.
“PONSB intends to fully settle its syndicated loan facility and thereafter help Proton to part settle its shareholders’ advance due to DRB-Hicom from the remaining funds of the R&D reimbursement grant of RM1.1bil,” it said.
DRB-Hicom had disposed of a 49.9% stake in Proton for RM460.3mil to China's Zhejiang Geely Holding Group (Geely) under its move to rope in a strategic foreign partner to turn around the loss-making national car company. After the sale, DRB-Hicom now holds 50.1% of Proton.
Last Friday, Proton and Geely announced several appointments to the manufacturing arm and Proton.
Dr Li Chunrong, with 30 years experience in the automotive industry, was the first non-Malaysian to head the manufacturing arm.
As the newly appointed chief executive officer (CEO) of PONSB, his target is to help Proton regain its glory days in five years.
He will unveil a transformative plan encompassing eight topics to improve the operations of the company. Among the eight topics are product planning, modification, procurement and quality improvement, with a core focus on customer satisfaction.
The joint goal of DRB-Hicom and Geely is to see Proton restored to being the best-selling brand in Malaysia and a top-three Asean brand in the next 10 years.
Hence, the management of Proton has assembled a global team that is able to utilise the leading local knowledge of DRB-Hicom and international resources of Geely.
* See also DRB-Hicom gets flexibility in managing asset pool pledged to Govco
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