Proton admits it had been sued

On 9 December 2008 I blogged that Proton had been sued by Goldstar Heavy Industrial in China (I was right about the amount, not the currency). Proton chose to remain silent until today 17 December 2008.

This morning, out of the blue, Proton issued a statement to confirm that it had been sued by Goldstar Heavy Industrial in Guangdong Province in China for RM503 million (1.0 billion Yuan). Proton’s statement was published in Malaysiakini.

I believe that Proton has now breached the Bursa Saham’s Guidelines whereby Proton is duty-bound to announce to Bursa Saham about the suit, which Proton did not do. I shall lodge a formal complaint with Bursa Saham in due course with regard to Proton’s failure to make the necessary announcement as soon as it was sued in China.

The Malaysiakini report here is as follow:

Proton sued for RM520 mil by ex-Chinese partner
Dec 17, 08 11:59am
Proton is being sued for half a billion ringgit by China’s Goldstar Heavy Industrial over the collapse of their joint venture plan to build vehicles in China.

MCPX

The Star daily said Goldstar had started legal action in Guangdong province, seeking about 1.0 billion yuan (RM520 million) in compensation over the failed venture.

proton gen 2 040405The two companies were to have produced vehicles in a plant in Dongguan province, but Proton reportedly said Goldstar failed to obtain a licence for the joint venture.

Goldstar’s legal action contravenes “the agreed arbitration process”, the Malaysian firm told the daily, adding that arbitration had been due to be held in Singapore in March.

The Star said Proton had instead signed an agreement to partner with another Chinese firm, Jinhua Youngman Automobile Manufacturing, with a goal of selling 30,000 units of its GEN-2 model in China.

Proton has been trying to develop export markets as it suffers a steep decline in market share in Malaysia, where it has been outgunned by imports in a newly deregulated environment.

The automaker was formed 25 years ago as part of an ambitious national industrialisation plan, but it has suffered from a reputation for poor quality and unimaginative models.

– Terjemahan oleh Lee Wee Tak – Ucapan ribuan terima kasih dari Wee Choo Keong –

Proton mengaku didakwa

Pada 9 December 2008 saya menulis bahawa Proton menghadapi tindakan undang-undang yang diambil oleh Goldstar Heavy Industrial di China (tulisan saya tepat pada jumlahnya tetapi tidak tepat mengenai mata wang yang terlibat). Proton membisu hingga hari ini, 17 December 2008.

Pagi tadi, tiba-tiba Proton mengeluarkan kenyataan bahawa ia menghadapi tindakan undang-undang oleh Goldstar Heavy Industrial yang bertapak di Wilayah Guangdong, Chinauntuk jumlah RM503 juta (1.0 billion Yuan). Kenyataan Proton diterbitkan di Malaysiakini.

Saya percaya Proton telah melanggar garis panduan Bursa Saham Malaysia di mana sebagai syarikat tersenarai dalam pasaran saham, ia wajib memaklumkan pihak burs mengenai tindakan undang-undang yang dihadapi tetapi tidak berbuat demikian. Saya akan membuat aduan kepada Bursa Sahamdalam waktu yang bersesuaian mengenai kegagalan Proton membuat pengumuman mengenai dakwaan terhadapnya di China seawal ini diketahui.

Laporan Malaysiakini seperti berikut:

Proton disaman RM520 mil oleh bekas rakan kongsi China

Proton menghadapi tindakan undang-undang sejumlah setengah billion ringgit oleh rakan kongsi Chinanya Goldstar Heavy Industrial kerana kegagalan rancangan usaha sama mereka membuat kereta di China

Menurut akhbar the Star daily, Goldstar telah memulakan tindakan undang-undangnya di Wilayah Guangdong dan ingin meminta gantirugi sebanyak 1.0 billion yuan (RM520 juta).

Kedua syarikat ini sapatutnya mengilang kenderaan di sebuah kilang di Wilayah Dongguan tetapi Proton dilaporkan bahawa telah menyatakan bahawa Goldstar gagal memperolehi lesen untuk usaha ama mereka.

Menurut Proton, tindakan Goldstar bercanggah dengah “proses pengadilan yang telah dipersetujui”, dan sepatutnya proses pengadilan akan diadakan di Singapore pada bulan March.

Menurut akhbar the Star, Proton pula menandatangai perjanjian lain dengan sebuah syarikat China yang lain, Jinhua Youngman Automobile Manufacturing, dengan matlamat memasakan sebanyak 30,000 buah kenderaan jenis GEN-2 di China.

Proton telah berusaha membangunkan pasaran ekspotnya kerana mengalami kemerosotan teruk di pasaran Malaysia di mana ia dikalahkan oleh kereta impot dalam suasana baru di mana kawalan impot kereta telah dilonggarkan.

Pembuat kenderaan ini telah ditubuhkan 25 tahun lalu sebagai salah satu bahagian daripada rancangan besar-besaran untuk perindustrian negara tetapi ia diketahui ramai sebagai pengilang yang berkualiti rendah dan reka bentuk yang kurang berdaya cipta.

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8 thoughts on “Proton admits it had been sued

  1. Mohd Noor Haji Jaafar

    Syabas dan tahniah kepada MP Wee kerana mendedahkan berita ini untuk pengetahuan rakyat. Tanpa pendedahan ini rakyat tidak akan tahu kerana arus media perdana tidak akan menyiarkan berita seumpama ini.

    Reply
  2. MCA balik

    YB,

    Sorry for off-topic but i thot would be great if you could expose the various monopolies controlled by MCA.

    The multiple comment in this post at Rocky Bru has a lot of info of mega Ringgit exposure. Please pressure MCA to expedite its dissapperance before the next General Election.

    http://rockybru.com.my/2008/12/mega-suit-against-govt-ong-tee-keat.html

    Terima kasih

    Syabas to you as the leading Pakatan Raykat’s YB who has done a lot since we voted you in.

    Reply
  3. kyory

    Dear YB,

    Yes, I have checked through the annoucement made by Proton to Bursa Malaysia but do not indicate any announcement on the case. However, this news has been spreading by several research bodies before the news were published in the newspaper.

    As a goverment linked company it should have comply with the rules and regulation indeed.

    Reply
  4. lee wee tak

    it mahathir adopted the Thai business model to let mega car manufacturers to set up their plants here, we would be driving altis, chevron, nissan etc…..instead of kapchai, kereta potong, kereta garenti rosak etc. and many malaysians would be employed

    Reply
  5. Maxxy

    like wat i had said last last last last time,if i am the prime minister,the first thing i will do is to close down proton.

    Reply
  6. Daniel

    Dear Sir,

    I have recently called TNB regarding the numerous faulty lamp posts along Jalan 1/27A in Setapak and also along the walking path where a student was killed in Taman Desa Setapak, 2 years ago. However, TNB asked me to call DBKL as they said these lamp posts are not managed by them.

    Two days ago, I called DBKL Jabatan Kerja Awam (JKA) and lodge a complaint with them. Howewer no action was taken. Tonight (18th Dec), the whole road is getting worse, all the lamp posts along Jalan 1/27A are not functioning. I don’t know why is this happening, maybe this is part of the repairing process. But, everyday, hundreds of people who walk pass the road and the walking path are now walking in fear. A few days ago, there were 2 cases of snatch thieves in these area.

    I’m not saying that lamp posts can deter crimes, but it helps in a situation where police presence are hardly felt.

    The area where Lee Kian Yip was murdered in Desa Setapak used to be very bright after the murder case, however, now all the spot lights are not working (they installed several spotlights under the railway track near Wangsa Maju LRT to brighten up the area). I think it is not right for the people who stay in that area which consist of mostly students, to walk out for dinner in fear.

    Thank you for you attention, Sir.

    p.s: I understand MP has more important tasks to deal with in the Parliament. Therefore, I tried my best to contact TNB and DBKL to fix the problem. But, I do not see any action as at today. I just hope that you can look into this problem if possible.

    Reply
  7. Daniel

    Thanks sir for your prompt email reply.

    I’m now crossing my fingers that DBKL will act quickly before another snatch theft occur in this vicinity.

    Once again, thank you.

    Reply
  8. Maxxy

    yah last night i also passing thought that road,the road is in total dark except for the vehicle light.a big van behind me had to flash light b4 it tookover me.

    Reply

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