Perusahaan Otomobil Nasional Berhad (Proton) was incorporated in Malaysia on 7 May 1983. It started the business by manufacturing, assemble and selling motor vehicles and related products including accessories, spare parts and other components. Later, Proton evolved progressively from assembly to design and manufacturing, and also emerged as the only full-fledged automotive manufacturer in the country in 1996. In this case, Proton has challenged many problems in order to survive in the industry. The problems such as, controversial sale of controlling stake, legal suit by its joint venture partner and turnaround in the operations. Consequently, it is essential for management to overcome this issue because it reflects the image of organization worldwide. Taking everything into account, the case outlines the persistence of Proton in the automotive industry. The announcement of National Automotive Policy (NAP) made by Malaysian Minister of Trade and Industry (MITI) on 28 October 2009 could benefit Proton.
The protagonist or decision maker in this case is Saiful Alawi, Charterd Accountant. He has been asked by a multinational auto giant to review Proton and to recommend whether an investment and/or collaboration should be considered. He needed to consider a number of significant factor, including, the state of automotive industry, market outlook of Malaysia, the possibilities of overseas market venture or collaboration, government policies, managerial implication and the performance of the company.
The major issue of the case is for Saiful Alawi to express opinion whether it is good or not to do investment in Proton or joint venture with Proton. An in depth review needed to be made from the day the new Managing Director of Proton took office from January 2006 until October 2009. In order to arrive with a good recommendation, Saiful Alawi needs to consider a number of significant factors. These include the state of automotive industry, Malaysia's market...
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