Proton to announce strategic tie-up by end April

Proton Holdings Bhd MD Syed Zainal Abidin Syed Mohamed Tahir said today that the company is in talks with a foreign company for a strategic core alliance, which might involve selling a stake to the foreign company in exchange for technology transfer. Not much more details beyond that were said, but details are to be announced at the end of this month once an agreement between the two sides is reached.

I guess we’ll have to wait until the end of this month before we know more about this partnership, and who the foreign car manufacturer is, and whether selling a stake would be involved. It will be good that technology transfer is in the plans. Can’t wait to know the full details.

Source

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • Joe Ooi (Member) on Apr 06, 2006 at 1:01 am

    Same damn old story and joke from Proton!

    Lately, Proton seem nothing to tell the market about their activity since there are new models coming out. Instead, lately they flooded to much story on all kind of news on "strategic core alliance" with foreign makers from US, Europe, Japan to China.

    Look like Proton head nowhere now! Others manufacturer like Naza, Kia, Toyota, Honda, Merc, BMW etc "very busy" announcing new models. But for P1, since they are unable to introduce new model, the only thing they can "make noise" in the market is announce (almost come out every month) so call "strategic alliance"! So many announcement, at the end, the sad truth is so many parties see P1 as not viable partner/alliance.

    Really big joker, it really cannot tahan already, the market want to see new model lah, …….. Oiii, P1, what are you doing, nothing to tell ah, ……….

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  • Joe Ooi (Member) on Apr 06, 2006 at 1:04 am

    Please take note ………since there are new models coming out…. should be read as ….. since there are NO new models coming out……..

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  • Tracks (Member) on Apr 06, 2006 at 1:05 am

    P1 need money, so they speculate to keep the share prices high. After that, they would dump the shares to make quick profit.

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  • nissan130Y (Member) on Apr 06, 2006 at 1:10 am

    i would say P1 is run by abunch of loosers. no experience to run big company. , no intelligent to produce good cars and no idea in what they are doing. let me run it la!!!

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  • mycar_stolen (Member) on Apr 06, 2006 at 1:11 am

    aiseh still Proton the SUPER MANUFACTURER story ka?

    dont buy Proton la, buy other cars if you really want to have lot of hair ON YOUR HEAD.

    Proton is not business entity it is a "Politic ERntity"

    You buy Proton you will not become "A SMILING MAN IN HIS CAR"

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  • pycazu (Member) on Apr 06, 2006 at 1:21 am

    Source quoted:

    " In a recent interview with The Associated Press, Prime Minister Abdullah Ahmad Badawi, who launched Proton in 1983, said the company needs a long-term "smart partnership" that can provide it with advanced technologies to cope with growing competition. "

    Hi Paul, seem like the source not so reliable wo! Read the above statement quoted.

    After all, I do agree that P1 must seek a partnership b4 they can proceed, or better just close it down.

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  • Joe Ooi (Member) on Apr 06, 2006 at 1:32 am

    What kind of "smart partnership" P1 want since they arrrrrrrr damn "STUPID"

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  • Joe Ooi (Member) on Apr 06, 2006 at 1:34 am

    Tracks said,

    April 5, 2006 @ 5:05 pm

    "P1 need money, so they speculate to keep the share prices high. After that, they would dump the shares to make quick profit."

    Joe Ooi – they suck so much money from consumers, yet they still seem not enough! Think of all kind of way how to suck money! Really suck ……….!

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  • Ricc (Member) on Apr 06, 2006 at 1:35 am

    Quoted :

    Tracks said,

    April 5, 2006 @ 5:05 pm

    P1 need money, so they speculate to keep the share prices high. After that, they would dump the shares to make quick profit.

    ——————————————————————-

    I kinda agree.. They wanna keep their share prices high. Will they sell it? I dunno. Buy Proton, and get ready to face TONnes of PROblem. TONPRO? Familiar heh? :p

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  • go_go (Member) on Apr 06, 2006 at 1:36 am

    haha, have to agree with everyone…. another 'proton' story? ok la… we wait what their plan and see what will happen at the end of this month…

    this might seem out of topic but anyway, u guys notice the latest interest rate for car loans? damn… give and take is what G always do huh? hmmm…

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  • go_go (Member) on Apr 06, 2006 at 1:38 am

    later same story will happen with Volks…. There is to much government control in Proton…. dunno la… just my opinion

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  • Joe Ooi (Member) on Apr 06, 2006 at 1:38 am

    "Unnamed foreign car manufacturer" – What are P1 want to do, magic show, get market excited/surprise by withheld the name. Or, errrrr, perhaps there are still no manufacturer at this moment! Just do wayang kulit to attract attention. Don't waite until end of month already, the deal may fail again!

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  • xefron (Member) on Apr 06, 2006 at 1:41 am

    "nissan130Y said,

    April 5, 2006 @ 5:10 pm

    i would say P1 is run by abunch of loosers. no experience to run big company. , no intelligent to produce good cars and no idea in what they are doing. let me run it la!!! "

    then you should go for an interview at Proton H&R

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  • rexis (Member) on Apr 06, 2006 at 1:41 am

    An unamed foreign car maker? Geely ah?

    Management transfer? They will make sure they are in charge!

    Technology transfer? If its Geely then…

    Seriously, what reaction should we have? Excited? Disappointed? Hopeful? Or dun care…

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  • honda_driver (Member) on Apr 06, 2006 at 1:43 am

    volks also in trouble now la.. china market collapsing for them.. big boss of volks also in danger of losing his job.. they losing more money than the rest of their subsidiaries can make.. any comment on that joe?

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  • motorhead (Member) on Apr 06, 2006 at 1:57 pm

    Yeah u r rite outspoken.. relax guys… lets see who the partner 1st… mean while dont book any car yet… be a smart consumer… if we have another successful partnership like P2.. i welcome it.. it’ll give more competition to P2.. bcoz rite now even P1 cant compete with P2….

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  • motorhead (Member) on Apr 06, 2006 at 6:48 pm

    I think arr.. may be with VW or Mitsu again lor…. if from China, big mistake lorr..

    But this kind of news i ve waiting for… bcoz poton ve some area better than P2.. body plate more solid.. just they lack of expertise…

    actually motorhead like gen2 design, 2006 model the interior like sports car, all black inside…. i ve eyed for sometime.. but hope it will equipped with better engines.. horror stories from my gen2 friends really scare me la..

    I can consider poton, if they improve la.. but if can get VW 1.3 GTI from poton, i am willing to wait….

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  • go_go (Member) on Apr 06, 2006 at 7:03 pm

    I dont think it is with VW or Mitsu… if with mitsu again, i dont know what to say… if with VW its good for proton and us… eventhough i always dissapointed in proton quality, but im looking foward towards this matter.. we'll see :)

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  • kody (Member) on Apr 06, 2006 at 7:13 pm

    Wahlaueh….

    i think may be in talk with Renault… remember…. P1 buy engines from them….

    Any alliances also will a bit too late, isn't??? time taken for tech transfer…keep some tech & let go low tech to P1…. haha Wira will still survive for years… :)

    >

    tell the Gen2 stories lah…

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  • cratzelogy (Member) on Apr 06, 2006 at 7:18 pm

    all these tie up stories wont make new car comes out by end of this year also. Coorperation with other car manufacturer is good, what about with international vendors? umm.. that is another interesting issue to look into.

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  • jiun_sayz (Member) on Apr 06, 2006 at 7:20 pm

    ai seh la….

    how many times have i been hearing Potong talking bout a strategic tie-up. it seems that it's become cold news. btw, i dont think anything will eventually materialise. all news and no substance.

    Lost my faith in Potong since 1997…

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  • kody (Member) on Apr 06, 2006 at 7:21 pm

    wahlaueh…

    read this

    P1 pledges to reduce defects

    http://biz.thestar.com.my/news/story.asp?file=/20…

    reduce defects mean use better material??? i dun think so P1 will do this…

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  • motorhead (Member) on Apr 06, 2006 at 7:31 pm

    Horror stories for kody…

    1. My best friend, his gen2 the exhaust muffler tercabut.

    2. Water went inside bonet, new model dont ve this poblems

    3. Strange sound inside dashboard. Cannot kautim.

    4. Plug stuck in the cam head.

    5. No power naik bukit.

    6. Cannot start

    7. small2 one like doors & etc…

    But oso positive ones

    1. Memang laju 180kph no poblem…

    2. Engine sound better at high speed..

    3. Save fuel.. long distant..

    4. Good handling…

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  • kody (Member) on Apr 06, 2006 at 7:50 pm

    wahlaueh…

    motorhead, regarding 'gen2 exhaust muffler tercabut', so it is the muffler's tail pipe end section falling apart from muffler, right.

    I saw one on the road(GEN2) before, the lady owner seen like not aware of her gen2 tail is hanging & nearly fall out already, this is a really suck of welding job done.

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  • REDDEVIL (Member) on Apr 06, 2006 at 8:02 pm

    Really fed up the the collaboration or alliance things lah.. i wonder why the G doesn't want to offload P to VW? could b political issue i guess.

    look at the skoda from czeh republic. the car doing extremely well after taking over by VW. although skoda is controlled by VW, it's still remain a czeh car as perceived by many people.

    Conclusion is why G doesn't want to let VW take control of proton?? maybe some people may lose $$$ or just merely 'no face'???? i personally don't see any problem if VW taking over P since P don't have the ability to compete with the others. u need to change and adapt to the environment in order to survive… P will not grow up if keep protected by G…

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  • motorhead (Member) on Apr 06, 2006 at 8:33 pm

    Kody.. not the muffler's tail.. but the whole muffler went down.. how it happened i didnt ask my fren in detail.. but sure bcoz of poor welding work.. but he got new one from SC..

    New deep blue gen2 with black interior really catch my eyes, i checked in showroom they ve improve the doors (easy to close & open), the panels, more rubber seals (even some part P2 dont ve), & solid body plate earn my respect… (compare to myvi, so soft like milo tin)…. out look ve many improvement.. performance dont know…

    As for me machines & steels u can improve from time to time… just need the right expertise…. Lets give Syed Zainal some room to perform here…

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  • go_go (Member) on Apr 06, 2006 at 8:38 pm

    Yes, Proton and VW agreement fail because VW thinks that Malaysian G has too much control and interference over Proton.

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  • E-Nabill (Member) on Apr 06, 2006 at 8:51 pm

    i dont tink its anyting more than either VW or MMC buying stake into proton…VW most probably…bcos thy hav a Quality Drive Campaing now in tanjung malim,from wat i know,its VWs condition to for proton to show commitment intro improving quality thn thy can be convinced into buying proton shares…

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  • Joe Ooi (Member) on Apr 06, 2006 at 9:15 pm

    honda_driver said,

    April 5, 2006 @ 5:43 pm

    honda_driver – "volks also in trouble now la.. china market collapsing for them.. big boss of volks also in danger of losing his job.. they losing more money than the rest of their subsidiaries can make.. any comment on that joe?"

    Joe Ooi – what to comments except to say Proton are able to negotiate with all problematic car manufacturer or auto related companies only. Just to mention a few – VW, Mit, Geely, Chery, Delphy, Lotus, MV Augusta, etc. At the end the results all were failed misely, either fail in enter "smart partnership" or have to take burden like Lotus and MV Augusta, which in turn is tax payer money! P1 want "smart partnership" but their IQ level is "below average"!

    Say can P1 like P2 nego and tie up with worldclass players like Toyota or Merc, either directly or indirectly? Problematics foreign companies as above-mentioned already very scare at and "runaway" from "much more problematic P1", what elase P1 can do. Perhaps after nego to all problematic car manufacturers P1 have the opportunity to nego, and all failed. Then the next likely scenario is to nego with "local players" and announce to the market successful "strategic tie-up" with the like of "Ah Chong Kedai Basikal, Muthu Motor Workshop or Ahmad Kedai Ketuk dan Mengecat Kereta". Ha, Ha, Ha, ….. it is a joke,………

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  • mystvearn (Member) on Apr 06, 2006 at 9:22 pm

    Proton Strategic partnership:

    49% of controlling shares.

    Proton has the final word

    Transfer of technology will benefit proton

    Proton will locally manufacture whichever partner's product locally at its plant.

    Proton will market the cars at its showroom?

    Proton will set a base to market their cars.

    Sounds very fammiliar right?

    Outsiders version of strategic partnership:

    Control majority of proton shares/buy the company all together

    Control key decisions and administration possibly foreign people.

    Transfer technology to proton.

    Rebadging so that proton will be more respected by making a variant version of the partner's own car. Kind of like Volvo s40 and ford focus

    Make profit from NAP?

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  • outspoken (Member) on Apr 06, 2006 at 9:27 pm

    i do not expect proton to change in the matter of months. let give these new management some room before we start bashing them. They are facing lots of trouble, and every step is a crucial step towards their survival. Let us not be "typically malaysian- bashers, pengutuk, pengkritik etc".. Even the new model, SRM is basically 90% done, so we would have to judge this new management for their future(?) models..

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  • Joe Ooi (Member) on Apr 06, 2006 at 9:52 pm

    outspoken said,

    April 6, 2006 @ 1:27 pm

    "i do not expect proton to change in the matter of months. let give these new management some room before we start bashing them."

    Joe Ooi – Give them not in a matter of mnoths, but 21 damn long years already lah! new management some room, what room/space they want somemore, the consumers are already get squeeze until to the nake and "NO SPACE" even to "stand"! "SRM 90% done! Waht a big deal, 2 door remodified and likely rebadge from other manufacturer old model.

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  • outspoken (Member) on Apr 06, 2006 at 10:02 pm

    new management hopefully will do their upmost to gain public confidence. i'd give them 8 months to improve on quality, 2 years on new/facelift models. what do you all think?

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  • kody (Member) on Apr 06, 2006 at 10:05 pm

    outspoken, may be u r right… But we also already give them chance for ~ 20years already. Why only last minutes…. only realise & want to compete for survive. I am sure early the p1 top management know their quality extremely sucks… but…' it's proton mah' altitude.

    motorhead, may be u r right…p1 is slowly….slowly inrease their quality when they realise customers are not compromise with their quality.

    if at the 1st place P1 already produce quality cars… now sure they can get more than 60% of new cars market shares.

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  • ar (Member) on Apr 06, 2006 at 10:14 pm

    in my opinion selling our stake to other foreign company is not very wise.

    bcoz so many malaysian already sell their own stake to others.

    so what's left for malaysia is doom…

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  • go_go (Member) on Apr 06, 2006 at 10:15 pm

    Yes, lets see how the new management goes… i think they did pretty good since recently they announce zero defects campaign.. i dunno about the effectiveness about the campaign, hope the quality dosent stay the same…

    my opinion is, proton should joint venture or have strategic tie-ups with reliable local companies, such as PETRONAS. Maybe if they joint together they would develop more fuel efficient campro or anything that beneficial to them. And, proton also should have some level of strategic collabration with all their suppliers (Componenets etc.) this will benefit in a way that quality supply materials and componenets can be further justified and can be controlled.

    Im not saying that Proton should never joint with foreign automakers, but what i emphasis here is try to control things here first than go get foreign help.

    These are just my opinion… :)

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  • Bigjoe (Member) on Apr 06, 2006 at 10:32 pm

    I think its too late for Proton even with a strategic tie-up. Unless the tie up is with the top few (and they have said no already), I think its too late. The problem is that new competitors from China, India and Korea will ensure brutal competition in the business for the next 10 to 20 years and in that environment, many companies will not survive.

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  • motorhead (Member) on Apr 06, 2006 at 10:35 pm

    Ala kody 20 year for car industry nothing la.. consider very2 young.. Joe Ooi knows this very well… i oso ve many2 frustration.. but what else to do?? i want to order brand new CITY, but later i paid more than 40k for the stupid taxes.. same like other brand oso.. but if we got the chance to buy good cars like VW or mitsu, even they r from POTON.. why not???… coz for me engineering is more important, evethough we will never get the japs standard.. yet… but we dont ve many option.. since poton around, can use it as benchmark to get our dream cars… just like we get myvi from P2…

    really wish it gonna be VW… i want VW GTI….

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  • waimak (Member) on Apr 06, 2006 at 11:18 pm

    I would like to see a quality standard been set in proton models. It may be gained through whatever collaboration or strategic partnership. Now what we usually see is someone telling, e.g., " My Waja got window problem lar" and someone else would reply "Well that's quite 'standard' for a proton", which definitely not the standard we want.

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  • mystvearn (Member) on Apr 06, 2006 at 11:30 pm

    The only difference 20 years ago and now is that Free trade and protection proton has. Yes, hopefully quality will be better.

    20 years is enough to make people detest. Maybe another 20 years to get recognize?

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  • kody (Member) on Apr 06, 2006 at 11:41 pm

    wahlaueh…

    may be after few months, Paul can set up to surveys & check for new P1 owners feedback about the quality of new p1 cars that manufactured after month of April or year 2006 models.

    like motorhead stated, new gen2 with some upgrading… but we are not that rich to change the car too often to try the quality. So, any new P1 potential owners please help to raise some feedback for us to know how well the p1 is going for now.

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  • Joe Ooi (Member) on Apr 07, 2006 at 12:11 am

    How to check the quality maufacture after April 06, e.g. Proton Iswara Sedan and Aeroback, both models older than P1 itself (80s tech from Mit) and failed UK safety standard (even with certain upgrade), yet still selling in Malaysian market. Whatever P1 do on quality aspect for this model, it won't up to mark as a high quality and safety car? They should discontinue this model long ago! but still selling, what a shame!

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  • whatsoever (Member) on Apr 07, 2006 at 1:13 am

    even everyone(almost everyone) said boring and angry with proton. but seems like whenever proton news appear still the most people given comment.

    whatsoever la, just let the proton died it-self if they don't want to change.

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  • motorhead (Member) on Apr 07, 2006 at 1:24 am

    Yeah kody!!!.. GOOD IDEA… & speaking of survey.. Joe Ooi can do it… Survey for poton cars 2006 models, start from today… i oso keep looking for new gen2 owners… & i will interview them.. & share the stories with u guys… see if we can hear any horror or good news..

    So Paul pls prepare one for poton feed back… as kody said, we r not so rich keep changing cars.. feedback can be very useful… can help or bash our national cars oso… hehehe…

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  • kody (Member) on Apr 07, 2006 at 1:31 am

    exactly…. let p1…. died….. stop the sub-standard cars on the market…

    whatsoever bro, people giving most comments to bash p1 because almost,,no no …. all of proton owners are suffered for their cheap, low quality & high cost products. This is just a channel to release the unsatisfied mood, since whatever complaints from owners also transparent to p1. & no initiatives to improve. Now p1 is sink to the nose than only they realise they are sinking & hard to breath.

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  • Initial D (Member) on Apr 07, 2006 at 1:36 am

    now i just hope any collaboration will materialize……..at least they will learn things faster……if the partner will teach them.

    regarding the quality, i read several reports…..forgot where liao…..some cars r good…i mean new batch…..well, agree, should start a anual proton quality survey forum here.

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  • motorhead (Member) on Apr 07, 2006 at 2:01 am

    Ohh no.. kody.. kody u r too mean.. let P1 die??.. then where u want to find yr wira's part???.. hahaha.. poorla other poton owners… cannotlah.. dont la like that… i still think poton can be repaired… like cars oso la.. can overhaul….like marriage oso..just never met the right wife yet…. if poton finds good wife, good la….. may be i can drive their kids.. like VW GTI ka, or EVo ka or Alonso's F1.. hahaha…

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  • Joe Ooi (Member) on Apr 07, 2006 at 2:12 am

    Initial D – be realistic, say you are CEO of Toyota or Merc, from commercial perspective, are you take and make decisions on the following: –

    1. You waste your time take flight to this Bolehland and talk to P1 or G (NAP) on strategic tie up.

    2. Why should you put your self in trouble (if collaboration take place) by pump in money, transfer technology, train the P1's "monkey", or do everything and anything on the ground, but don't have a say and management control! So you put in the effort like "you cook the rice, P1 eat it, later you wash the plate"! Is it a partnership! Indeed it is bullshit! That is the main reason why until now tie-up never take place for P1 nego with so many parties.

    3. You have global outlook, P1 is "xenophobia", are you dare to dump in money knowing very well P1 will go no where. Furthermore, You make tonne of money, why bother about P1, outside Bolehland P1 is "nothing" and no more than churning out outmoded inventory with ridiculous price – never in its history able to compete in open market!

    4. P1 is economically not viable since it inception! So you are wise investor won't invest on it!

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  • kendo (Member) on Apr 07, 2006 at 3:55 am

    who else will be interested in PROTON?

    don't tell me

    that is china chery deal!

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  • intermilan (Member) on Apr 07, 2006 at 6:47 am

    Emm.. sure china one lah.. or izzit Mitsu?

    Balik-balik Mitsu 2x.. old flame die hard eh?

    if materialise, guess it would not be great by any way.

    But this clearly signal that they dah desperate dah ni.. hantam la .. asal can use the term potong, smart and strategic in one sentence for real.

    Malu la sbb dah pernah kena 'tale' dgn balak Jepun sebelum ni, pastu 'clash' and 'putus tunang' dengan balak omputih pulak. Omputih tu tak nak 'tale' punn… Banyak cekadak katanya. Now nak carik balik balak jepun dulu.. tak pun apek main land pun apek mainland la..

    Macam kisah benar bohsia pun ada ni..

    About the QUALITY campaign…..

    Savvy kan TUV certified (still lagi ke or marketing gimmick je?, anyone).

    Apa proton staff / management tak boleh nak continue adapting and spreading the spirit, culture and work ethics yg sepatutunya diwujudkan semasa program TUV tu ke? Apa staff tak 'nampak' apa itu Quality, Continuous Improvement etc..

    Ntah-ntah working culture potong ni sarat dgn penyakit 'M' and 'aiman tak kesah' ?

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  • accordmania (Member) on Apr 07, 2006 at 7:27 am

    hello altis_fan, are u still living in stone age era? .. then only u can claim that toyota or altis is elegant and sophiticated. they only can produce flinstone's car

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  • acbc (Member) on Apr 07, 2006 at 7:41 am

    1st thing… sack the 'nyanyok' advicer. No use keeping him around. Always criticise P1 for the Agusta sale. Without him, new management can work better.

    2nd, pump more money to Lotus for them to develope more new technology which can benefit P1.

    3rd, for God's sake… stop producing Sagas, Iswaras, Wiras, Satrias & Perdanas! Come up with something new!

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  • mycar_stolen (Member) on Apr 07, 2006 at 6:45 pm

    hai people…

    why are you people so concern about BIG FLOP PROTON? this BIG FLOP PROTON never care about you…they only want your money, squueze you dry.

    1. if the tax is so high no money, maybe can buy a good second hand car let the rich poeple or people earning SingDollars/USD buy new car and play around with depreciation.Throw away some ego save lots of money buying 2nd hand cars.which ever you want except P1.dont buy P1 anyhow.

    2.if you are paying for your own car dont compare people with company car/car allowance/potong car/stolen car..because they dont care.they are in different situation.but our G dont care they "squeeze; the whole nation.rich people poor people all have to buy expensive car and expenxive fuel that not tally with economy perfomance.

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  • nkhhenry (Member) on Apr 08, 2006 at 12:36 am

    what stupid game P1 try to play?? 1st say VW partner talk but fail cos no stake selling n now come again smart partner alliance core… padai pakai wording… i hope P1 dun try to fool people around n u think who u r?? joker…if compare to world automotive , P1 useless n hopeless n always hoping to buy or share other people technology…pls come yr own innovation product like big bro toyota or honda, engine w VVT-i or V-Tec!!! try to independentlahh, dun let G to "hadiah" u "tongkat + wheel chair" P1 always do thing to "malu" us Malaysia…. stupid investment in MV Agusta lost Million..but r yr people really think that $$ invested lost or going other places…. try think???? P1 pls stop whatever planlah

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