Prepare to retrench, Proton told

Prepare to retrench, Proton told

A think tank believes Geely may want to let go of deadwood if it acquires a 51% stake in Proton.

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PETALING JAYA:
The Institute for Democracy and Economic Affairs (Ideas) has warned of retrenchment of Malaysian workers if Chinese carmaker Geely Automobile Holdings acquires a 51% stake in Proton Holdings.

“The government and Proton must be prepared for this and provide a job transition programme to ensure that workers are able to re-skill or train for another role to take advantage of other employment opportunities or careers,” said the think tank’s external relations manager, Azrul Khalib.

In an interview with FMT, he said some automotive companies forced to downsize in the past, such as Ford, Volvo and General Motors, had retraining programmes for their employees so they could take on new jobs or choose new career paths.

“The main purpose of these programmes is to assist soon-to-be former workers get employment elsewhere instead of being thrown out into the job market,” he said.

“It is common practice and Proton should do the same.”

He noted that much had been said about Proton’s failures over the years.

“It is no use blaming past leadership of the automaker again and again without making the necessary changes which will enable it to remain relevant and turn a profit in the years to come,” he said.

“To get the results you want, changes must be made.”

He said such changes would include bringing in fresh talent, letting go of existing deadwood, increasing efficiency and improving production quality.

Similar concerns were recently raised by economist Jorah Ramlan, who spoke of the impact of the potential acquisition on the jobs of more than 60,000 people. Figures from last year showed that about 12,000 people were employed by Proton and 50,000 by Proton vendors.

In an earlier interview, Azrul said Geely, which owns Swedish carmaker Volvo, could steer Proton in the right direction.

Under Geely, Volvo has reportedly been given a high degree of independence and even made its largest hiring exercise of engineers in recent times, contributing to the development of the new Volvo XC90, S90 and V90 models.

“Arguably, Proton is not yet at the level of Volvo, which is an iconic brand that goes way back, has a solid track record and has a global market,” he said.

“Geely might want to bring in new blood to revitalise Proton and be more involved in its operations to protect its investments.”

StarBiz recently reported that Geely was the frontrunner for the 51% stake in Proton. Over the years, there have been several plans for Proton to form a long-term partnership with a foreign carmaker. Potential suitors included Volkswagen, Suzuki and Renault.

Concern over future of 60,000 workers at Proton’s plant

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