Lotus for sale?
Discussion
Saw this posted on the MV Agusta owners website, thought you would be interested. Seems Lotus & MV Agusta are to be sold off by Proton, story in the Malay Times. Double worrying for me as I have an F4 and an Elise, parts are bad enough now without all the uncertainty.
Proton may hive off its non-core assets
By AYU MUSA KAMAL and FRANCIS FERNANDEZ
Nov 11:
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PROTON Holdings Bhd is reviewing its investments in loss-making Italian motorcycle maker MV Agusta Motor and the Lotus Group International, sources said yesterday.
Mail Money was told that no decision has been made, but the carmaker – reeling from its first loss in six quarters – may hive off certain assets to make the group leaner, as well as more attractive to investors.
To make itself attractive to investors, the carmaker needs to focus on its core business of making cars, introducing new models at a faster pace, as well as cutting down on investments in none core assets, analysts say.
For the three months ended June, Proton suffered a net loss of RM12.4 million, a stark contrast from a net profit of RM166.5 million it posted in the same period a year ago.
The carmaker also set aside RM137 million for debts which may not be recovered, with the main suspicion being that a portion of the potential bad debt was linked with MV Agusta.
Analysts had previously said the carmaker may make more provisions in the coming quarter, a move which they said may further alienate funds from the company’s shares.
The investment community has thus far been unimpressed by Proton’s investment over the past five years, which has halved its cash reserves.
In 2001, Proton had about RM6 billion in hard cash, but at the start of 2005, the reserves were down to RM2.8 billion.
Much of the money was spent on building a manufacturing plant in Tanjong Malim, Perak, which is running at less than 20 per cent capacity, investment on research and development for its Campro engine as well as other platforms, and the purchase of MV Agusta.
Proton had pumped in RM348.6 million into MV Agusta in 2004, to gain a 57.75 per cent stake in the motorcycle maker.
Jimbo
Proton may hive off its non-core assets
By AYU MUSA KAMAL and FRANCIS FERNANDEZ
Nov 11:
--------------------------------------------------------------------------------
PROTON Holdings Bhd is reviewing its investments in loss-making Italian motorcycle maker MV Agusta Motor and the Lotus Group International, sources said yesterday.
Mail Money was told that no decision has been made, but the carmaker – reeling from its first loss in six quarters – may hive off certain assets to make the group leaner, as well as more attractive to investors.
To make itself attractive to investors, the carmaker needs to focus on its core business of making cars, introducing new models at a faster pace, as well as cutting down on investments in none core assets, analysts say.
For the three months ended June, Proton suffered a net loss of RM12.4 million, a stark contrast from a net profit of RM166.5 million it posted in the same period a year ago.
The carmaker also set aside RM137 million for debts which may not be recovered, with the main suspicion being that a portion of the potential bad debt was linked with MV Agusta.
Analysts had previously said the carmaker may make more provisions in the coming quarter, a move which they said may further alienate funds from the company’s shares.
The investment community has thus far been unimpressed by Proton’s investment over the past five years, which has halved its cash reserves.
In 2001, Proton had about RM6 billion in hard cash, but at the start of 2005, the reserves were down to RM2.8 billion.
Much of the money was spent on building a manufacturing plant in Tanjong Malim, Perak, which is running at less than 20 per cent capacity, investment on research and development for its Campro engine as well as other platforms, and the purchase of MV Agusta.
Proton had pumped in RM348.6 million into MV Agusta in 2004, to gain a 57.75 per cent stake in the motorcycle maker.
Jimbo
I have just re-read that
"proton has cash reserves of 2.8 billion"
This is a car company in trouble? Ford and GM are in so much trouble that analysists say they are about to die, GM shares are reduced to "junk bonds" and proton have a cash reserve of 2.8 billion????
I dont care if that is 2.8 billion zimbabwe dollars, it is better than most of the large car manufactures and they are very small!
That is like me saying I am down to my last 20 million, but the brand new money printing machine is only at 20% capacity.
I dare anyone to raise 2,8 million on credit let alone reserve, but then 2,8 Billion!!!
Made a loss of 12 million, they have just baught a motorbike company and built a state-of-the-art manufacturing plant. Who thinks that they are in trouble?
The analysist who wrote that is either buying up shares or is the dumbest guy on the planet.
"proton has cash reserves of 2.8 billion"
This is a car company in trouble? Ford and GM are in so much trouble that analysists say they are about to die, GM shares are reduced to "junk bonds" and proton have a cash reserve of 2.8 billion????
I dont care if that is 2.8 billion zimbabwe dollars, it is better than most of the large car manufactures and they are very small!
That is like me saying I am down to my last 20 million, but the brand new money printing machine is only at 20% capacity.
I dare anyone to raise 2,8 million on credit let alone reserve, but then 2,8 Billion!!!
Made a loss of 12 million, they have just baught a motorbike company and built a state-of-the-art manufacturing plant. Who thinks that they are in trouble?
The analysist who wrote that is either buying up shares or is the dumbest guy on the planet.
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