Proton replaces outspoken executive chief
Proton replaces outspoken executive chief
Agence France-Presse, Kuala Lumpur
Malaysian national carmaker Proton on Tuesday replaced its
chief executive, Mahaleel Ariff, ending weeks of speculation over
his future after he criticized the government's policy on the
auto sector.
Proton said late on Monday that after nine years in the job,
Mahaleel's contract would not be renewed and he would be stood
down from on Tuesday.
"With these decisions, it is clear the board is committed in
its resolve to see Proton continue to be managed in the most
professional and efficient manner, in the interest of all its
stakeholders," it said in a statement.
The row flared up in May when Mahaleel, who has been fighting
a slump in Proton sales in the face of a flood of foreign
imports, said the automaker had been "poorly treated" by the
government.
He said that its policy of removing protective tariffs under a
regional free-trade pact was damaging the performance of the
carmaker which was launched in the 1980s as part of a national
industrialization drive.
His complaints also touched on a controversial permit scheme
for car imports, in operation for decades, which critics said was
being used to dump vehicles in the domestic market at below their
true value.
Trade Minister Rafidah Aziz retorted by saying that Proton's
poor quality was to blame for its declining market share and that
the carmaker should become more competitive in order to face a
newly deregulated environment.
Former premier Mahathir Mohamad, an adviser to the carmaker
which he helped launch, rushed to Mahaleel's defense and shone
the spotlight onto the Approved Permits (APs) given to ethnic
Malays under an affirmative action policy.
The government was pressured into releasing the list of permit
holders, which highlighted four men, including two former trade
ministry officials, who received more than 28,000 of the 67,158
permits issued this year.
The revelations fulled rumors of corporate cronyism and
unleashed a firestorm against Rafidah, who was booed and heckled
by her own party members at their general assembly last week.
Rumors of Mahaleel's departure have been circulating for weeks
after the Proton board reportedly asked him to "show cause" why
he should not be removed for his criticisms of the government.
Proton used to sell six out of every 10 new cars in Malaysia
but growing foreign competition is eating into its market share
which fell to 44 percent last year from 48 percent in 2003.
Proton Holdings shares were sharply higher in early trade on
news of Mahaleel's departure. Proton was up 0.65 ringgit
(US$0.17) or 7.69 percent at 9.10 ringgit.