EON offers VSS to employees
DRB-HICOM unit Edaran Otomobil Nasional Bhd (EON) is currently offering a voluntary separation scheme (VSS) to it’s employees in an effort to improve efficiency in it’s operations.
The VSS package includes 1.5 months their last drawn salary multiplied by years in service to a maximum of 24 years, or last drawn salary multiplied by months to retirement with a maximum of 36 months, whichever was lower. On top of this is an extra 2 month’s salary, RM1,000 medical assistance and salary in lieu of unused annual leave to a maximum of 60 days.
This was because EON sales volume had fallen for the past two quarters and it was currently unable to sustain it’s operation size so it has to move to a leaner organisation chart. EON currently has 2,500 employees.
July 26, 2006 @ 2:37 pm
proton’s will be next.. u all see la.. just a matter of time.. tick tok tick tok…
July 26, 2006 @ 3:23 pm
Offer looks reasonable.
July 26, 2006 @ 3:37 pm
hopefully no such thing at proton edar.
July 26, 2006 @ 4:46 pm
ahh….
is the domino block beginning to fall….
July 26, 2006 @ 5:29 pm
eon doesnt just sell proton cars, and they have many other businesses as well, so i dont see how this is related to proton, unless someone here can point out otherwise with some more facts.
July 26, 2006 @ 6:51 pm
Once upon a time, Proton is the among the core biz during the good old days. Luckily EON isn’t just into selling Proton cars these days.
Anyway, without going into much details, good news indeed.
July 26, 2006 @ 7:26 pm
dont really get what you mean stanley.
can elaborate further?
“Luckily EON isn’t just into selling Proton cars these days.”
means good that eon dont depend on proton? should mean they are doing better now?
“Anyway, without going into much details, good news indeed.”
but good news they need to do a VSS?
July 26, 2006 @ 7:27 pm
hmm…. heird from one of their suppliers, by next month, their working operation will be 3 days a week, not sure its only for production or the whole factory
so instead of 1million car production per year in tg malim, now per year can produce how much ? hope they can focus on its quality, not like last time quantity only
July 26, 2006 @ 9:13 pm
huh ?
July 26, 2006 @ 10:01 pm
Can we look at the bigger picture and say NAP is the cause of the low sales volume?
July 26, 2006 @ 10:09 pm
Not NAP. Myvi. Gave the rakyat a better/cheaper choice than what proton has to offer.
July 26, 2006 @ 10:40 pm
huhu..
July 26, 2006 @ 10:50 pm
Wohhooo, Wohhooo. Life sux. Business is hard to do.
July 27, 2006 @ 9:00 am
Maybe for the car experts here, big no no for old tech old design car like saga, wira sedan. But what about the common family? My auntie colleague driving kancil thinks that the proton saga is very worthwhile and want to get one(i am discouraging her thou).
Myvi is technically killing off Saga, Wira, Waja, Gen2, Savvy its like a genocide bomb to proton, and the fuel price increasing might just caused some perdana owners to sell their cars and get a smaller car too! The back seat can be folded off for maximized cargo, or just leave it there for 5 full size passenger confort seat. Its not all the time you need big boot and 5 passengers. P1 launching Savvy, seriously not much bad comments from the owners! But it is a car that need to fight with all the best seller compact cars kancil, kenari, kelisa… not to mention the big king myvi.
EON dont depend on selling proton now? What else car they selling and what % of income are they making from it?
July 27, 2006 @ 9:44 am
Honda driver,
Lets make it clear with u again.. i just say proton will be next, never said it relate to proton.. if u fail to understand my 1st simple statement, than u r just plain stupid or just want to messing around…
btw, EON main product still proton’s.
Go and visit their website: http://www.eon.com.my
July 27, 2006 @ 11:32 am
according to my friend ex-EON guy, EON was formed to sell proton cars, something like the VW in m’sia case recently, where a company is form just to proctect the interest of high-corporate players. EON of course did well when they are the sole distributor of the Saga and Wira, remember that time you have to pay more money for a new 2nd hand wira to avoid waiting list of 1years when it was 1st launch? Then came proton-edar, who brought us satria and putra (correct me if im wrong). Day by day, some bright guy in proton to ask why are we not doing the distribution job and earn more money, get more control over the marketing of the product lines? Then came the super dealer deal, EON have was force into renovating their outlets and stuff like that for a more uniformed corporate identity, so EON is not having it well for the past years.
Anyway, having VSS is not a back-step in management point of view, making you organisation work more effienctly by merging departments, paying more for 1 staff to do more instead of having 2 staff, removing seasoned staff and inject new blood is doesnt mean the company is in the red. only EON top management will really know this excercise is a call for way forward in running their business or an alarm for their share holders. but a hint is their only have 2,500, but didnt mention how many staff is getting axed, if its more than 50 percent, EON share holders out there might get a shivers down their spine.
July 27, 2006 @ 11:34 am
A company will issue VSS due to at least 2 reasons according to my commercial officer; streamlining, insufficient sales volume etc etc.
Looks like EON is doing this to maximise their operation with minimal cost. Good move but gives a negative impression. At least EON is doing what they think is needed.
P1 to offer VSS in the future? maybe yes maybe no. With plans to phase iswara n wira and if their future lineups cannot deliver the sales volume i’d say this is very very the likely case.
If they really do the VSS, I’d say bold move. Looks really disgraceful from outside but for the good of the company, ya just have to get rid of the rotten apples in the basket.
si vous esprit est placé sur Saturne puis votre tête doit être dans l’uranus
désirent ardemment le proton de phase !
July 27, 2006 @ 12:05 pm
johanbey,
USPD (Usahasama Proton DRB) launched Satria & Tiara back in mid 90’s before it was liquidated to Proton Edar.
July 27, 2006 @ 1:29 pm
Yea, and dont forget what is EON stands for; EDARAN OTOMOBIL NASIONAL, & why it was formed long time ago.. blind man oso can know it’s relationship with proton… but yes, the senario may change in the future and become EOL, EDARAN OTOMOBIL LAIN-LAIN….
July 27, 2006 @ 2:31 pm
VSS for Proton maybe alot closer than we think
Protonomics
The Proton, Malaysia’s national car, is losing market share. Can the company be weaned from its government subsidies?
http://money.cnn.com/magazines/fortune/fortune_archive/2006/07/10/8380925/index.htm
http://www.jeffooi.com/2006/07/another_proton_exit.php
http://www.jeffooi.com/2006/07/protonomics.php
si vous esprit est placé sur Saturne puis votre tête doit être dans l’uranus
désirent ardemment le proton de phase !
July 27, 2006 @ 2:52 pm
VSS for Proton maybe alot closer than we think
http://money.cnn.com/magazines/fortune/fortune_archive/2006/07/10/8380925/index.htm
http://www.jeffooi.com/2006/07/another_proton_exit.php
http://www.jeffooi.com/2006/07/protonomics.php
si vous esprit est placé sur Saturne puis votre tête doit être dans l’uranus
désirent ardemment le proton de phase !
July 27, 2006 @ 3:17 pm
sorry for the double posts lol
July 27, 2006 @ 3:49 pm
thx Driven2020, looks like proton VSS is inevitable.. may happen end of this year.. sad to those will be affected but sad oso those who ve victimized by proton.. yesterday I just met a fren, he was complaining about his 1 year old gen2 which he took 9 years loan for it….
July 27, 2006 @ 4:30 pm
9 years loan is LPPL. annual impact not so much coz spread through 9 years. by the time he finished paying for it the car would be worthless to sell n would have cost loads more cumulatively than the initial price. Even EK civics drives like crap after 10 years of use what more to say for P1.
only P1 have the luxury of this world record loan period. Doing so will force the nation to buy P1 coz the annual impact is far less then the more popular marques.
malaysia memang boleh
on the speculative side what was the actual reason for the super duration loan? to clear up stocks? to lessen nations burden? to force consumers to favour it as it will give less annual repayment impact? coz P1 was going to close shop and the only way to keep everything alive is to do the most outrageous thing imaginable: extended loans with super low rates. I dunno the answer for that.
How many P1 cars have safety crash ratings? it doesn’t matter what the score is but at least we will know how well would the car behaves during crashes.
And now the possibility of VSS for P1. Could be for good or bad but anyway I dun feel surprised.
si vous esprit est placé sur Saturne puis votre tête doit être dans l’uranus
désirent ardemment le proton de phase !
July 28, 2006 @ 8:56 am
“Proton is doomed.” said Mahathir.
Actually, Proton has stopped many of its production lines coz they have thousands of unsold cars in their backyard. They stopped calling in components from suppliers. Many local suppliers will cease operations if this were to continue.
August 12, 2006 @ 3:09 pm
[...] EON previously engaged in a Voluntary Separation Scheme exercise to trim it’s workforce. [...]