Malaysia's state-controlled carmaker, Proton Holdings Bhd, reported a second straight quarterly loss on Tuesday, stung by its investment in an Italian motorbike firm, and poached a new boss from a rival.
Proton, whose domestic market share has been shrinking as competition heats up, reported a net loss of 154.3 million ringgit ($40.8 million) for the second quarter ended September 30, hurt by bad-debt charges related to Italian unit MV Agusta.
"From the financial perspective, clearly the investment has not met expectations," Chairman Azlan Hashim told reporters.
Proton rescued Agusta a year ago by pumping 70 million euros ($82.7 million) into the struggling firm, allowing it to pay off its debts, but the move into motorbikes surprised investors. Proton says it has now written off the value of its 57.5 percent stake in Agusta.
On Tuesday, it named Syed Zainal Abidin Tahir, 43, to succeed Tengku Mahaleel, giving him the title of managing director. He is currently executive director of the manufacturing arm of rival Malaysian car-maker Perodua, which is part-owned by Japan's Daihatsu Motor Co Ltd.
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