Proton Holdings Bhd has sufficient funds in its coffers to help in Lotus Group International Ltd's restructuring plans, says former Prime Minister and Proton adviser, Tun Dr Mahathir Mohamad.
"I think we have sufficient funds to inject into Lotus Group if necessary," he told reporters today after a working visit to the tooling plant of Miyazu Malaysia Sdn Bhd here.
The group recorded a net loss of RM60.1 million for its third quarter ended Dec 31,2010, due mainly to higher branding costs and restructuring expenses incurred by its sports car division.
"We have to restructure Lotus Group and need to introduce new models. In the meantime, we cannot make a profit. We hope within two-three years when we introduce new models, we will do better," he said, adding, Proton as a whole did not lose money.
In the third quarter of last year, the group registered a net profit of RM79.68 million.
Analysts had earlier slashed their forward forecast on worries the group''s expensive effort to revive the British sports carmaker, Lotus Group International Ltd, would bleed the national carmaker dry.
However, Proton Group Managing Director Datuk Syed Zainal Abidin Syed Mohamed Tahir said the group believed that the financial performance in the third quarter was a small setback.
"We are still positive on our fourth quarter outlook," said Syed Zainal.
He believed that Proton Holdings would still be able to better its financial year ended March 31, 2010 results.
"For the time being, we will utilise whatever models that we have to expand the Lotus Group, through more sales and creative marketing," he said.
Meanwhile, Miyazu Chief Executive Officer Amrizal Abdul Majid said the company plans to invest RM100 million for equipment, facility and training in the Tools, Dies and Mould (TDM) initiative for the next five years.
It will also set aside RM50 million for the Hot Press Forming (HPF) new plant building and equipment which will be operational in February next year.
Miyazu, an automotive dies and moulds designer and manufacturer, is a collaboration between Proton Holdings, Miyazu Seisakusho and Sojitz Corporation.
The company now supplies TDM to automotive Original Equipment Manufacturers (OEMs) like Toyota, Nissan and Honda.-- Bernama
Read more: Proton has funds for Lotus revamp: Dr M http://www.btimes.com.my/articles/20110301182301/Article/#ixzz1FMQOqFs2
