Proton Holdings
Proton Holdings Berhad, commonly known as Proton, is a Malaysian multinational automotive company. Proton was established on 7 May 1983, as Malaysia's sole national budget car company until the advent of Perodua in 1993. The company is headquartered in Shah Alam, Selangor, and operates additional facilities in Proton City, Perak.
Proton began manufacturing rebadged versions of Mitsubishi Motors products in the 1980s and 1990s. Proton produced its first indigenously designed, non-badge-engineered car in 2000 with a Mitsubishi engine. It elevated Malaysia as the 11th country in the world with the capability to design cars from the ground up. Since the 2000s, Proton has produced a mix of locally engineered and badge-engineered vehicles.
Proton was founded under majority ownership by HICOM, with a minority stake being held by Mitsubishi Group members. By 2005, Mitsubishi had divested its stake in Proton to Khazanah Nasional. In 2012, Proton was fully acquired by DRB-HICOM. Proton was the owner of Lotus Cars from 1996 to 2017. In May 2017, DRB-HICOM announced plans to sell a 49.9% stake in Proton and a 51% stake in Lotus to Chinese company Geely. The deal was signed in June 2017, and Lotus has ceased to be a unit of Proton. In July 2023, after the internal restructuring in Geely Group, the Proton brand was consolidated into the balance sheets of Geely Auto.
Etymology
Proton is a Malay backronym for Pe'rusahaan Otomobil N'asional.History
1980s
The concept of a national car was conceived in 1979 by then-Deputy Prime Minister of Malaysia, Dato' Seri Dr. Mahathir bin Mohamad, now Tun Dr. Mahathir Mohamad, with the goal of enhancing the Malaysian automotive industry. The National Car Project was approved by the Cabinet in 1982, leading to the equity investment of Proton on 7 May 1983, with Mitsubishi Corporation for the future of the company. At its creation, it was wholly owned by the government of Malaysia through Khazanah Nasional. It was headed by its founder, Dr. Mahathir. Proton approached Mitsubishi Motors between 1983 and 1984 and brokered a joint venture between both companies for the production of the first Malaysian car. The result of the collaboration was the Proton Saga, which launched on 9 July 1985.The Proton Saga was based on the second-generation 1983 Mitsubishi Lancer Fiore 4-door saloon, powered by a 1.3-liter Mitsubishi Orion 4G13 engine. The first Proton Saga to roll off the production line in Shah Alam is preserved in the National Museum as a symbol of the beginning of the Malaysian automotive industry. Sales of the new Saga outstripped supply, and Proton struggled to meet the growing demand, but by mid-1986, it had captured a 64% majority domestic market share in the below 1600cc segment. Later in October 1987, a hatchback variant called the Proton Saga Aeroback was launched and had a more powerful 1.5L Mitsubishi 4G15 engine and a redesigned rear-end. Exports to Ireland began in 1988, and by March 1989, Proton had entered the United Kingdom car market with the Saga saloon and hatchback duo, where the Malaysian company set the record for the "Fastest Selling Make of New Car Ever to Enter the United Kingdom."
Proton's sales declined during the late 1980s as a result of the worldwide economic recession, and the lack of technical expertise in Proton's management. Kenji Iwabuchi, a former Mitsubishi Motors executive, was appointed as the managing director of Proton in 1988.
1990s
On 15 August 1992, the Proton Saga Iswara was launched. It shares the older Mitsubishi platform used in the original Proton Saga, but its exterior and interior styling are unique to Proton. The Saga Iswara was widely used as taxicabs in Malaysia during the 1990s and 2000s, and many continue in service.On 21 May 1993 the Proton Wira was introduced. It is based on the fourth-generation 1991 Mitsubishi Lancer and was sold in a four-door saloon guise at launch. The Proton Wira Aeroback, a five-door hatchback variant featuring a Proton-designed rear-end joined the range in 1993. By 1996, the Wira saloon and hatchback shared six different engines, all of which were sourced from Mitsubishi Motors. The engines included the 4G13 1.3L and 4G15 1.5L carried over from the Proton Saga, the newer 4G92 1.6L, 4G93 SOHC and DOHC 1.8L and the 4D68 2.0L diesel. The Wira was the first Proton car to be produced in right-hand drive and left-hand drive configurations, and remains the only Proton car to have been available with a diesel engine.
Proton launched the three-door Proton Satria hatchback in 1994 and the two-door Proton Putra coupé in 1996, both of which are based on the Wira platform and powered by the same range of Mitsubishi engines offered in the Wira, except for the 2.0L diesel. The Proton Wira, Proton Satria and Proton Putra were exported and marketed across the European Union and Middle East during the 1990s. The Proton Perdana, a premium D-segment saloon, was launched in 1995. It is based on the seventh generation Mitsubishi Eterna, introduced in 1992, and was fitted with Mitsubishi's 4G63 2.0-litre straight-four engine. It was also offered with the superior 6A12 DOHC 2.0-liter V6 engine after 1999. The Perdana remains the only D-segment, V6-powered car to be commercially produced by Proton. A Citroën AX-based 1.1-litre five-door supermini called the Proton Tiara debuted in 1996. It was the result of a joint venture between Proton and PSA Peugeot Citroën, a collaboration which was later abandoned after the death of Proton's then CEO, Tan Sri Yahaya Ahmad in 1997.
On 30 October 1996, Proton acquired an 80% stake in the British company, Lotus Group International Limited, valued at £51 million. The controlling interest was purchased from A.C.B.N. Holdings S.A. of Luxembourg, a company controlled by Italian businessman Romano Artioli, then also the owner of Bugatti. By 2003, Proton's stake in Lotus was increased to 100%. Lotus has been involved in the development of suspension and handling elements of all Proton cars launched since 1996. The Proton Satria GTi, widely regarded as the best Malaysian car ever produced, owes much of its success to Lotus' contributions.
2000s
The Proton Waja, the company's first indigenously designed model, was launched in August 2000. However, it still had a Mitsubishi 4G18 engine at launch as Proton's first in-house CamPro engine was unavailable. The Waja marked the end of Proton's extensive reliance on other car manufacturers for vehicle platforms and components. However, the model was only a moderate seller, being significantly outsold by Proton's own much older and slightly smaller Proton Wira. The Waja also marked the start of a decline in the local market-leading Proton marque which led to Perodua, the second Malaysian vehicle manufacturer, eventually capturing Proton's sales crown in 2006. In 2002, Proton introduced the Arena, a ute based on the Proton Wira platform and thus far the only Proton model to enjoy significantly more popularity in its export markets than domestically. The Proton Gen-2, a hatchback model, was launched in late 2004. It was the first Proton vehicle equipped with the new CamPro engine.The RM1.8 billion Proton Tanjung Malim manufacturing plant in the Malaysian state of Perak commenced operation in November 2003. The new plant had been projected to open in August 1998, but it was deferred due to the 1997 Asian financial crisis. However, it was revived in 2001 and completed in late 2003 instead. The new 1,280 acre plant was also developed as part of the Proton City project, which would span 4,000 acres of land in Tanjung Malim and consist of residential, commercial, institutional, industrial and recreational areas. The plant has an annual production capacity of 150,000 vehicles, but could be expanded to 1 million units in the future. The Proton Tanjung Malim plant complements the original Proton plant in operation since 1985, located in Shah Alam, Selangor. Despite a combined production capacity of around 350,000 units, both plants are underutilised with just 52,235 and 114,645 units produced at the Tanjung Malim and Shah Alam plants in 2011 respectively.
In July 2002, Proton announced that a factory in Iran was going operational by next month to manufacture cars from knock-down kits in Borujerd in a partnership with Zagross Khodro.
On 7 July 2004, Proton purchased a 57.57% stake in MV Agusta S.p.A. of Italy, valued at €70 million. Proton failed to reverse the misfortunes of MV Agusta and sold the marque to Gevi S.p.A. in December 2005 for €1, with Gevi assuming the €139.44 million debt carried over from MV Agusta.
File:Proton Persona, Serdang.jpg|thumbnail|right|The second generation Proton Persona, the successor to the Proton Wira saloon.
The latter half of the 2000s marked Proton's comeback in the domestic market, with its vehicle sales growing a total of about 37 percent from 2006 to 2011, significantly above total passenger car sales growth of about 10 percent. The comeback was spearheaded by the Proton Persona saloon launched in August 2007, the long-overdue replacement for the best-selling but ageing Proton Wira saloon. The Persona was based on an extended version of the 2004 Proton GEN•2 hatchback platform and shared most of its components and external appearance. The Persona successfully sold 19,840 units in the first three months following its launch.
The second generation Proton Saga was launched on 18 January 2008. Previously, the first generation Proton Saga had been Proton's first and most successful model, having had a long 23-year lifespan, the longest of all Proton models to date. The new Saga proved to be a successful model Proton with over 23,000 bookings two weeks into its launch. It has consistently ranked as Proton's best-selling vehicle domestically, while placing 3rd overall in 2008, and 2nd between 2009 and 2012, beaten only by its archrival, the Perodua Myvi in overall vehicle sales. Proton further widened its model base when it introduced the Exora, Malaysia's first indigenous 7-seater MPV in April 2009. The Exora was based on Proton's next generation P2 platform and helped satisfy the growing demand for a budget 7-seater in the domestic market, which had been monopolised by the Nissan Grand Livina and the smaller Toyota Avanza. For several years, it consistently positioned in the Top 10 best-selling vehicles in Malaysia.