GERMAN MEDIA FRENZY OVER POSSIBLE VW-PROTON ALLIANCE
Wednesday, October 10, 2007; Posted: 02:06 AM
FRANKFURT (Germany), Oct 10, 2007 (AsiaPulse via COMTEX) — Germany’s print and broadcast media, not to mention the specialised trade media, have been churning out reports over the past few days about an impending deal between Wolfsburg-based giant carmaker Volkswagen (VW) and Malaysia’s national car company Proton (KLSE:5304).
Germany’s leading dailies such as the Frankfurter Allgemeine Zeitung, Die Welt and the Handelsblatt have been speculating that VW may finally be on its way to forming an alliance with Proton, by either acquiring a 20 per cent stake in Proton or forming a joint venture company which would include Proton assets.
Later, VW might increase its stake in Proton to 50 per cent. An indication to this effect was given by VW head Martin Winterkorn himself in a recent interview with the Frankfurter Allgemeine Zeitung, when he said that VW would “move in that direction”.
VW’s acquisition of Proton will strengthen the German carmaker’s position in Southeast Asia.
But VW, according to Winterkorn, would like to see the risks minimised and is also interested in Proton’s extensive network of dealers and agents.
But he also emphasised in the interview that VW was “nowhere even near a due diligence”. He would first see what concessions Malaysia had to offer.
However, German industry pundits said that VW could afford the luxury of waiting longer while the Malaysian side could not.
Indeed, VW will insist that the Malaysian government provides a “soft landing” cushion to compensate it against any losses at Proton for, at least, three years.
Winterkorn, who has been steering the management wheel at VW since last year, is expected to visit Malaysia “in the very near future”, as one company spokesman said, without elaborating.
The “on-off-on” talks between the two sides were first initiated in October 2004 when the Malaysian side, no longer able to withstand the financial bleeding of the national carmaker, was desperately looking for a foreign partner who could either turn around the loss-making Proton or completely take over the company.
Most German analysts see the comments made by Malaysian Prime Minister Abdullah Ahmad Badawi as providing clues to Proton’s future survival. Abdullah said recently that Volkswagen was studying Proton for a possible strategic deal that could help “save” the Malaysian carmaker.
The word “save” is the keyword here as it implies, according to German industry experts, that Proton faces a gradual corporate death if it is not quickly resuscitated by someone with the financial muscle of VW.
The VW management is, ostensibly, conscious of the fact that a deal with Proton would not only catapult the latter to regain the top spot in Malaysia’s car market, but also enable it to get a foothold inside Europe which it has already tried in the past but was unsuccessful because of its high prices.
Due to Proton’s plight, VW believes that it holds the better card in the corporate poker game.
VW seems to relish its unique position. With rivals General Motors and French carmaker Peugeot having withdrawn from partnership talks with Proton, VW is now the only one whom the Malaysian carmaker has to turn to.
The fact that Proton reported a loss of RM46.75 million in the first quarter to June has further strengthened VW’s bargaining power because it knows that the Malaysian government will now be under pressure.
“It’s a buyer’s market,” said Wolfgang Frank, a Frankfurt-based German analyst who works for a local bank and monitors the automotive market.
But a recent analysis by A.T. Kearny projects Malaysia as not relevant in the near future for carmakers, either as a market or as a production site.
The study, a copy of which the Duesseldorf-based Handelsblatt claims to be in its hands, has raised questions in German industry circles as to why VW wants to get involved with Proton.
A.T. Kearny’s Foreign Direct Investment Confidence Index, which reflects the investment plans of international corporate executives, showed that China and India lead the list of favourite investment destinations while Malaysia ranks 35th.
Frank Rattey, one of the authors of the study, said that the costs are much higher in Malaysia than China and the market is limited.
Also, the government does not want Malaysia as a production site but only as a site for high-value services, particularly for financial institutions.
According to Kearney, nearly half a million cars will leave the assembly lines of Malaysia’s automobile plants this year.
A total of 15 car plants are based on the western Malaysian peninsula, where in addition to Proton, rival car manufacturers such as Perodua, Toyota, Honda, Hyundai and the alliance partners Renault-Nissan assemble and build cars.
The biggest plant produces 250,000 units each year and is operated by Perodua together with Toyota.
The company produces cars under licence from the Toyota associate Daihatsu.
Perhaps, as German analysts speculate, the temptation for VW to join hands with Proton does not lie in Asia but in England where the British sports car plant Lotus, a Proton associate, is based.
(BERNAMA-OANA)
//The word “save†is the keyword here as it implies, according to German industry experts, that Proton faces a gradual corporate death if it is not quickly resuscitated by someone with the financial muscle of VW.//
The Germans are not stupid. They know what this Gomen wants — “feel good”. Yes, because of plight, the Germans know this gomen would not let it dies. So at the end, the deal will be most lopsided.
Proton MUST be shut immediately instead of throwing in our hard earned money to make it to live another day, Proton is aledi brain dead! Let it dies!
Let Proton dies!
Even if there is a deal with VW, it will be lopsided. We must stop our hard earned money further spend on a brain dead monster!
Let it dies!
Proton has cut enough throats and caused motoring to pay through their nose for far too long. Its demise will not be moaned but cheered though this won’t be mentioned in the MSM.
Proton does not cut throats. It produces cars at such high costs that only idiots like you buy.
I never owned a Proton in my life. I once owned an Opel (Manta), Chrysler(Alpine), a Ford(Belina), a Honda, a BMW (5-series) and Merc in that order. Merc was my first used car – cannot afford a new one since Proton made its debut in the mid 80s.
Malaysia should never have gone into car manufacturing. The domestic market is too small and production costs too high. It was a political decision – and like all problems political, the solution can only be a political one.
Proton cars are one of the white elephants of TDM. Only monopolyism had kept this suckers alive. Without monopoly , it will die a natural death, since AAB is not part of the previous govn decision maker, in my opinion he will let it wilt away.
I think Malaysia willing to sell Proton for RM1 but VW is smart, they wait until we pay them to take over Proton with profit guarantee….. so in hindsight, the Augusta deal wasn’t bad at all…
Proton is paying the prize for bleeding Malaysians – by imposing high costs for its cars, poor service and irresponsible staff.
When I first bought a Proton in 1997 I was not allowed to refuse the extra accessories that I did not want. “Take it or leave it” the salesman said.
This was their arrogance since sales were brisk.
When my daughter bought a Proton, she was delivered the car with an empty tank. The salesman has pocketed the RM 30.00 he was supposed to pay for the petrol.
Walk into a Proton service centre and they treat you like shit.
Of course, I dont own a Proton now, and never will.
VW could afford the luxury of waiting longer while the Malaysian side could not. VW is just waiting for the price to come down to one euro
I asked the proton technical side to bleed my brake system. /They said it will take a few hours. I asked why? Their answer “they do it manually aka pump..pump release. My neighborhood Ah Piau the mechanic has been doing this method from time immemorial. I wonder what service this fellows subscribe to. No tea shop not to worry they built one near the workshop serving their 10 personnel.
undergrad2, I never own any Proton. It’s an idiotic presumption on your part. The nature of Proton cutting throat is hierachial and continues through continued protectionism. A certain Mr. 10% was once rumoured to get a royalty of RM15K per unit sold. This could be a more likely factor contributing to the high expense. The Proton has been a bane to the motoring public.
The goons have never known what is negotiation.They think everybody is like the compliant Chinese or Indian whereby they can ride rough shod over.Even from a very weak position they can sound tough as if bargaining from a strong position.Hey bodoh, Volkswagen knows your position,you are not going to shake them.
As k1980 says they are waiting for you to turn into a 1 euro company!! The goons are probably waiting for Proton to agree to affirmative action in employment as well as keeping Proton’s ridiculously large network of dealers intact!! So lets see who wins?
Ah Pek, I certainly agree with you on the fact that having being able to ride rough-shod over the nons, the embedded umnoputra way of skewered thinking can be seen in Bodohland’s floundering way of international relationships. It gets into their big heads that being unfair is really fair! They have really lost it for a long time..
correction—“The goons are probably waiting for Volkswagen to agree …… ……………….”.
VW can afford to wait lah.
They know the government badly needs a foreign partner to run the show and all the publicity about mV Augusta hasn’t helped Proton’s position plus the other companies that chose to walk away from the table.
Of course the PM does not want to hear such bad stories. Guess the people at the main newspapers are now attending crash courses on ,”Making Good Headlines from Bad News for Dummies”.
Let proton die!! I hate to see idiots with free APs driving E class for the price of a perdana!!. Nor would still have to stomach the guy who is a major provider for proton to drive brand new cars foreign cars every few months.
Thats our money. For the MPs no problem they get free AP. Including the opposition (Wan Azizah). Now you know why only Mahathir made so much noise about APs.
You have deprive a good 10 over years of my money to drive a safe and confortable car so that a few cronies of you enrich yourself at my expense!!!!!
“A certain Mr. 10% was once rumoured to get a royalty of RM15K per unit sold.” Wits0
The suggestion that it is a contributing factor to a project doomed from the very start because it goes against the laws of supply and demand shows the depth of ignorance of what matters and what does not.
“The goons have never known what is negotiation.”
Mahathir chose Tengku Mahaleel (from Kelantan) as its CEO based on criteria unrelated to the management skills required of a CEO. He is a history major who treated negotiations as a poker game. His only ‘qualification’ then was driving race cars for SHELL. His arrogant and autocratic ways and abrasive style of management led to poor decision making and poor morale among its senior managers – the consequences of which make a good case study for business management students today, of what not to do.
This is an accurate made by a well-informed commentator on another website about the man at the helm who did not have a clue what he was talking about!
“The record will show that you (Tengku Mahaleel) took many other risks, and failed in the marketing and sales aspect. Making a car is the easy part. Getting people to buy it in sufficient numbers is the difficult part. You need to create brand loyalty. Brand building starts with deliverying quality – exceeding customers’ expectations, to repeat the cliche.
When it comes to that the record shows an amateurish CEO who did more to destroy the Proton brand than to build it.
Your whole attitude was wrong if there is an “export” quality and a domestic quality in your cars. That means local consumers (who pay more for the cars, by the way) can be pissed on.
The money you spent on acquisitions could have been better spent on improving the quality of what you are already making.
Personally I think your conduct whilst in the drivers’ seat in Proton suggests you have an attention deficit disorder with a hyperactive element. This being the inability to identify and focus on what you had to do.”
ooops “assessment”
The measure of the man and his condescending attitude is obvious with his oft repeated remark about the sale of MV Augusta for 1 euro:
“”I am willing to pay 2 Euros for Augustas or Rm1 for Lotus in case it is for sale in future.”
Of course he knows that for a agreement to be legal the sale has to be for the nominal sum of a unit of any currency. He thinks we are all stupid!
Undergrad2:
You sure have a strong dislike, if not hatred, for Mahaleel. He was handpicked by Mahathir, and the old man will stand by his “godson” till he kicks the bucket. Just like he handpicked the judges, the ACA chief, the EPU chief, the AG. Proton is simply a microcosm of Bolehland. It is indeed worth only one euro.
Does anyone remember that some time before Mahaleel was appointed that one official was axed after making a statement to the Press that Proton should reduce price as a social responsibility?
The National Car Project was the maiden “ATM” from The Done Master to take control of this country with funding from the people and natural wealth.
There were far too many practices whereby corruptions are allow to take place in any national projects including our National Car.
Can you imagine how is it, feeling we are actually the ‘2nd class’ owner of our own national pride as compares to international market. The manufacturer shortchanged us with parts and cost that ‘specifically’ benefitting those financial groups which took funding from national wealth.
Don’t get angry as we cannot do anything now.
Let those dogs bite and fight among themselves until all of them are gone.
What I like in the happenings are those old dogs that strive everything for their puppies are actually outlived these puppies…
Ha..Ha…Ha …
That’s life cruelty as they are the one that give and take away the puppies future and lives.
The Done Master now will never call it a day until all his puppies are gone which will be soon within the next 10 years time…
Why ? What makes me say so ???
I didn’t as that’s the price that The Done Master have to pay for all his ‘shortcuts’ to fame… and he knew that all along.
Believe it or not …
After Mahathir and Mahaleel with their MahalDeal persistence, why should Proton fare well? If you sell an inferior product at an inflated price, its the wrong attitude. Hope to attain economy of scale? Unlikely.
Why be jargonistic over the diagnosis of the situation with supply and demand when a plain appraisal already reveal the simple reason? Consequent to the Proton monopoly, the protectionism given to it already vilely taxed the motoring public severely. Bad karma deserve a good return?
Is VW asking for ONE EURO?
If I were VW, I’d pay one Euro plus obtain some form of subsidy or grant from Khazanah since the idiots will continue to insist on continuing the “branding” and the use of inflated local components.
Last I heard the price has gone up even more.
WE now have to PAY THEM to take it. And give them RM 4.6 billion soft loan. And give them Germans a house each under “Malaysia, my second home”.
“Desperado” by the Eagles.
“Desperado, why don’t you come to your senses?
You been out ridin’ fences for so long now
Oh, you’re a hard one
I know that you got your reasons
These things that are pleasin’ you
Can hurt you somehow.
“
undergrad2 Says:
October 15th, 2007 at 21: 00.36
“The goons have never known what is negotiation.â€Â
“Mahathir chose Tengku Mahaleel (from Kelantan) as its CEO based on criteria unrelated to the management skills required of a CEO. He is a history major who treated negotiations as a poker game. His only ‘qualification’ then was driving race cars for SHELL. His arrogant and autocratic ways and abrasive style of management led to poor decision making and poor morale among its senior managers – the consequences of which make a good case study for business management students today, of what not to do.”
Ever wondered why Tun M and Tun Daim often choose “dumb nitwits” rather than Oxford/Cambridge scholars to run thier mega projects, eh? Eric Chia, Mahaleel and so many more. Aha, ask the 2 Tuns yourself.
So who is the idiot who sold Augusta for 1 Euro? Well who were the idiots who paid millions when Augusta was worth but 1?
Proton-VW tie-up:
This is a case of “sell also die, don’t sell also die”.
Maybe, sell better because it’s lonely to die alone.
“You sure have a strong dislike, if not hatred, for Mahaleel.” Godfather
I make no apology for that. Mahathir made some bad choices. This is one of them.
But Mahathir is the kind of man who, if you are completely loyal to him, will stick with you through thick and thin – right or wrong. On the other hand, if you’re less than completely loyal to him, he has the memory of an elephant and is vengeful when he decides to act. He never forgives. That’s the mark of the man – a character trait found in individuals like our Info Minister. Call it racial profiling if you must but I’m not a racist.
Mahaleel should stick to playing his role as base guitarist of some band, and playing badminton – and improving his driving skills over the weekend. He has no business being a CEO of any company less so of a company like Proton. The stakes are just too high. After graduation he should stick to his marketing job with Shell, a position he wouldn’t have got but for the NEP.
What drove me over the top was when he ‘chastised’ the new management for selling MV Augusta for 1 Euro! How else would a buyer be able to assume the massive liabilities of the loss making venture but for the nominal sum of 1 unit of the currency??
@undergrad2
The domestic market is too small and production costs too high.
——————————–
>>>I disagree the domestic market here is too small. In fact, we’re the biggest in ASEAN. Also, Mitsubishi launched its all-new Lancer model here second only to North America, while Honda launched its Civic Type-R model here earlier than any other Asia market. Their reason? “Malaysia is a very important market for saloon car”.
Mahathir saw this, thus, the birth of Proton back in 1985. Perfectly fine in that sense IMHO, but due to lack of discipline under the management of Tengku Mahaleel, Proton paid its price. If there is someone who is saving Proton, it would be their current MD who is actually previously from Perodua: Syed Zainal Abidin.
Under Syed Zainal’s management, Proton is better now. Quality have been reported to improve for newer models such as Savvy and Satria Neo, the new Persona is a model that “Msian wants, not what the management (a reference to Tengku Mahaleel’s style of making hatchbacks rather than saloon) wants”. But there’s only too much of what Syed Zainal can do. No matter what, this deal MUST happen for Proton to survive. This troubles most petrolheads like me, can the deal work? Knowing our gahmen well, hm…..this will be tricky since the gahmen won’t give away its “national pride” aka “cash cow” easily.
Don’t forget Thailand aims to be the “Detroit of Asia”.
Tokmoh,
Are you saying projects like Malayawata (in the 60s) and Proton (in the 80s) could survive without government protection?? Thanks to Malayawata, steel rods cost higher than imported ones and houses cost more than they should. Consumers would have had to pay through their teeth to be able to afford one – without the availability of long term financing at fixed rates of interest. Projects like cement, sugar, spices and cocoa come to mind. Where would such projects be without government protection?
Locally assembled cars of foreign makes used to cost a mere RM7k in the 70s – expensive by standards of those days. Hire purchase terms offered by finance companies then were up to a maximum of 18 months. Today the cheapest car on the road costs several multiples of RM7k – a very high cost to pay for producing our own cars, don’t you think?
When I was back in Malaysia I was shocked to find that you could take out a hire purchase loan of RM40k for 25 years well beyond the life span of any car!
In the U.S. the latest 3-series BMW costs some US$31k – well within the reach of the salaried managerial employee. How much does the same car cost in Malaysia? In Malaysia you’d have to be a successful businessman, a successful professional or a corrupt public official to afford one.
In the mid-80s a 5-series BMW (locally assembled) cost only RM60k. How much does the same car cost today? After Proton made its debut, someone who owned a BMW for several years could sell it and make a profit – thanks to Proton! Not to mention Merc.
Something is wrong with this picture!
Whatever happened to projects like Perwaja Steel? It was meant to be a cash cow and Mahathir and his cronies milked it dry. There wasn’t enough tits for everybody and they had to take turns to milk this cow.
When I was an undergrad at UM, roti canai costs only 10cents. How much does it cost today in Rajoo Restaurant in Jln Gasing?? Thanks to Proton.
What has roti canai got to do with Proton?? Everything.
I suppose we are lucky that TDM had no control over production of babies, if he had his way we would be population 70 million by now, yes 70 million with 90% on life support from the government…scary
“The domestic market is too small and the production costs too high” undergrad2
……………………………………………………………………………….”I disagree that the domestic market here is too small.”.Tokmoh.
……………………………………………………………………………….Tokmoh, that Proton survived until today is not because it is the preferred car of the populace here in Malaysia. It survived simply because of protection —-high import duties imposed by Mahathir on foreign imports to make sure that they are not affordable when compared to local made cars.This is not a level playing field and look at Proton today when AFTA comes into the picture—Proton is going to die if foreign companies does not come in soon enough!!
In fact Mahathir has been advised not to proceed with the project by a well-known economist at that time on precisely 2 points ie market is too small to set up a car manufacturing company plus also the fact that there isn’t any expertise.He went ahead for reasons only known to him.
Undergrad 2 made some very salient points here and that is can Malayawata survive on level playing field?The government has to come in to impose heavy import duties so that Malayawata can prosper and we ordinary salaried Joes have to pay a higher price for our house!If there were no import duties to protect Proton Malaysians Malaysian roads would be filled with Hondas,Toyotas and all kinds of foreign made cars some 25 years back!! And these cars bought at a price one would find in Australia,England or US
Let’s apply to WWF for a protection order for our national car! When the first Proton rolled out of the production line decades ago, everyone was clapping their hands but I gave it a bad grade. My question then was “Which part of the National Car was made in Malaysia?”. It was but an abandoned version of a Mitsubishi model which we picked and considered our treasure.
The sale of Proton cars has been so protected that the government resorted to raise the price of other cars to make Proton look cheap. On the other hand, Proton salemen themselves destroyed this opportunity when they resorted to collecting “undercounter” money for “fast cars” by creating artificial shortages in supply and over-demand.
So what’s so great about our National Car? It is already a dying breed!!!!!
Shuold read “………………Proton will die shortly if foreign companies do not come in soon enough to rescue it!!!”.
There is no right or wrong in idea of having Proton. The blunder lies on TDM’s ‘way’ to promote own political agenda. To think of how to get money for his cronies. Many national projects were launched ( Proton, Perwaja, MEC and etc. ) with huge borrowings.
First, NEP must be implemented, minimum 30% share holdings must be achieved. Knowing it is a mission impossible with the culture of Umnoputra, the only way is to increase in import duty and excise to make any other brand become expensive. A political agenda rather than commercial decision.
Secondly, limited AP is introduced for imported car to promote as fair trade policy as higher excise duty imposed on others. Again NEP must be implemented, a few AP king was created with all the ‘ windfall’ corrupted wealth without real business means. A political agenda rather than commercial decision.
Subsequently, to ensure the impossible project is not a failure though No 2 car is outperform the Proton. Once again under the name of NEP, the only left behind National project to be maintained at all cost. A political agenda rather than commercial decision.
At the end of the day, the inefficiency to be maintained and losses of resources continue in the BolehLand just for Umnoputra to continue claim ” Boleh”.
undergrad2 Says:
October 17th, 2007 at 05: 26.11
Tokmoh,
Are you saying projects like Malayawata (in the 60s) and Proton (in the 80s) could survive without government protection??
————-
>>>I have no comment for Malayawata, but for Proton: no, in fact, I think government protection is necessary for let’s just say for the sake of this argument, the first 10 years to allow them to catch up with the rest of the players in the automotive business. If they can, then that’s good (like Perodua), and if they can’t (which is exactly what happened), they should get a partner to take over them and show the way (like VW) or they can choose to die slowly by themselves. The ones who can make this decision would have to be Proton’s management, while the government should be honest and credible enough to remove the protection.
During Mahaleel’s time, Ford and Rover approached them before for partnership, bt his arrogance got over him, and it was mainly because he felt he was invincible due to over-protection. The government OTOH, seemed to be reluctant to straighten him up and remove the protection given to him (for the reason that we all know). Two wrongs lead to this disaster Proton is facing now.
I think your method of comparing directly the price of car that way is similar to how our Semi Value compared the price of toll charge. Sure, the price of cars there are extremely cheap, but what Msians are not aware is the REAL price of maintaining it. Fuel subsidies for instance, are not available in US or anywhere else. And even then, we complain the g’ment increase the price of fuel? Sure, an increase means that life will be difficult for Msians, but be realistic, how much longer do Msian motorist need to stop lying to themselves that car ownership is a cheap affair? That in truth, some ppl are just not gonna be able to afford to maintain a car even if they can buy one, thus, they shouldn’t buy a car in the first place? And then there’s the insurance and road tax, which when compared to Msia’s, make our country look like a utopian land. While the price of cars maybe artificially high here, the price of maintaining them are artificially low here.
/// Yes, because of plight, the Germans know this gomen would not let it dies. ///
mendela,
No, because of plight, this gomen would have to let it die sooner or later.
Because of pride, this gomen would not let it die…
And because of plight and pride, it will end up having to sell it to VW for RM1…
Lelong, lelong, anyone?
“I have no comment for Malayawata, but for Proton: no, in fact, I think government protection is necessary… ” Tokmoh
Proton would not survive without government protection. No one can disagree with that!
Ergo if we were right about going into the manufacturing of cars rather than buying what are being assembled locally (CKD/CBU), how do you justify protecting an infant industry past its infancy? It would be another matter had it been a private venture – but this is a public venture with massive government protection at every level including the financial level. Don’t you think it is a case of gross misallocation of our limited resources? Twenty years downstream the motoring public is still being made to pay for the high cost. Whatever justification that may have existed prior to this had long ceased to be applicable and we are today left with an inefficient industry that is costing Malaysian taxpayers millions of ringgit every year – do the maths.
Then putting a man like this Mahaleel in the position he was, was a big mistake! Knowing the guy, I’m sure he did not listen to his advisers and made numerous flawed decisions along the way. The corporate management culture within Proton under him was just wrong. His style of management was autocratic and is a reflection of the arrogance of the man. It is easy to see how this guy just made a bad job of a bad idea.
It is true the cost of operating and maintaining a car in the U.S. is much higher although it is relatively cheaper to own one. But that does not mean that Malaysia should experiment with an industry the comparative advantage of which does not lie with her to begin with.
“…VW may finally be on its way to forming an alliance with Proton, by either acquiring a 20 per cent stake in Proton or forming a joint venture company which would include Proton assets.” Bernama-Oana
Would foreign makers of automobiles be interested in Proton without the government protection?
In short, it would be in the long term interest of the motoring public in Malaysia and Malaysian tax payers to see the removal of tariff barriers and the freeing of the domestic market to foreign competition. In short, the standard of living of Malaysians could only rise as a result.
Tokmoh, your comments are about micromanaging a problem. My position is about the issue of why are we forced to micromanage a problem at all.
I’m sorry but I cannot allow the following comments to go by without a reply:
“Fuel subsidies for instance, are not available in US or anywhere else. And even then, we complain the g’ment increase the price of fuel? Sure, an increase means that life will be difficult for Msians, but be realistic, how much longer do Msian motorist need to stop lying to themselves that car ownership is a cheap affair? ” Tokmoh
If this is an example of the kind of reasoning we see among government officials and BN politicians, I do not know what is. First they make the wrong decision and the public is made to suffer if only because of the high costs (and I’m not talking just production costs). Then they come up with the ‘solution’ – my question is why is there a need for any ‘solution’ if the decision is the correct one in the first place?
It’s like someone who insists on fishing at a spot where there is no fish, and then asks that fish elsewhere be brought over at enormous costs to where he’s fishing so he could continue fishing! Would it not be cheaper if he were to move to the very spot he knows there is fish??
“It’s like someone who insists on fishing at a spot where there is no fish, and then asks that fish elsewhere be brought over at enomous costs to where he’s fishing so he could continue fishing! Would it not be cheaper if he were to move to the very spot he knows there is fish??”.Undergrad 2
Spot on analogy, undergrad2. In Proton’s case there is no place it can moved to find the fish. Also in the first place it should have been known there is no fish and Proton shouldn’t be thinking of fishing.Anyway the decent thing to do is to stop its subsidy and let it die to stop further bleeding the tax payers!
You’re right AhPek!
Proton should be sold for scrap at break-up value. However, that’s not the end of it. UMNO leaders are free to fight to set up a new company with $2.00 paid up capital to undertake the purchase of the scrap and recycle it for profit.
While you guys are still swirling around the murky Proton waters, I heard some Japanese manufacturers are going off to Vietnam to evaluate new investments there instaed of here.
Good luck, Malaysia. And goodbye.
Those idiotic BN ministers and administrators can just sleep on!
Great Idea endangered hornbill, maybe we can interest the vietnam gomen to have a nationa car project, we can then move Proton to Ho chi min…
Proton – Just give this game up!
What’s sooooo proud of a national car that makes losses & flooding the road with ‘protectionist unfair policy’ cars…..
What have Malaysia benefitted from Proton anyway? flooding the road with more unsafe cars?
Just bang a Wira/Iswara with a humble entry-level Hyundai Accent and see which one is more damaged.
They thought they were “kings” because the stock is in their hands, but they forgot the money is in the pockets of the rakyat and they had a choice to buy or not to buy!!!
Since we are on the subject of Proton, let me relate to all of you this “kisah benar” which I experienced with my first Proton Saga Megavalve years ago.
I called at the Proton Service Centre in Jalan Sungai Besi to have my first free service and was given a number “165”. I was told to come back to collect my car at 1700 hrs that day, but because I was free that day, I went to the Service Centre at 1430. I took a peep at behind the scene, and to my surprise, my car was sparkling clean lying in the bay “ready” for service with a piece of paper written “sudah dicuci”. I was early, so I waited. At about 1530 I enquired at the counter and was told I would have to wait for my number.
At 1600, the number was way past 165 and cars with numbers later than mine were rolling out of the service line. I still saw my car lying there with the sign “sudah dicuci”. I did not go there for a free car wash but for a service on my engine. After making noise at the counter, the supervisor immediately sent someone to attend to my car and finally, my car was serviced and ready for delivery only at 1840.
That was such a frustrating event that I told the supervisor right in the face that that was the first, last and only time I was sending my car for service there.
The wonderful thing was, everyone at the service centre was or looked so busy, walking up and down, but no one had the time to attend to my car. With such service attitude, it is a wonder how the Proton service centre can still function and run till today.
Actually, I will like to see Proton in another perspective. It was a good project because its goal is to help drive other major industries such as the rubber industry and the steel industry to strengthened the Malaysian Economy as a whole. However, I am just curious about the execution of the project.
We all observed that Proton is well protected in Malaysia because we were trying to launch it successfully. However, over the years, when we see the early success of the car manufacturer, the government did not put up a plan to gradually remove the protection that Proton received. In other words, when a car maker is successful under a protected cocoon, it may not experienced the true competition that many successful car makers in the world like Honda, Toyota faced when they were selling their new cars in the market, remember the Japanese cars in the 60s and 70s. People despise Japanese cars because of they believed that the Japanese cars were far more inferior that the ones that were produced by their western counterparts. However, in this millennium, I guess we all know where the Japanese car makers stand. They are not only successful in Japan but they are successful in the world.
As a Malaysian, I will like to project to be successful. However, I don’t really see that the new Proton cars are really relevant to today’s market demands. For example, hybrid vehicles has been the hot potato in the world for at least a decade and we have yet to hear anything about it in Malaysia. From my understanding, Proton has done some research on hybrid engines and they have actually developed a hybrid engine prototype. I was disappointed that they did not include it in the latest car since it will not only educate people about the latest commercial car technology that people in the world are using and it will also stir the interest for gas efficiency among the Malaysian people.
Lastly, like many car makers in the world, Proton should not only serve as the Malaysia’s car producer, it will also needs to develop its own world class car technology. The inclusion of the new Gen2 engines marks an improvement over the previous engines that were used by the Proton cars. However, Proton should know that there are many things that they should do before they can be successful.
They should really dedicate more resources in researching new car technologies and revised various ways to cut down the cost of their car production line. It is hard to be a successful car maker if there is no constant drive for innovation and for improvement.
In summary, I feel that project is definitely good in an ideal point of view but a lack of clear direction and a lack of good management with the lack of competition, it has caused the national car project to fall to its lowest point in all time history.