Proton Volkswagen updates: due diligence audit?

A report from AP says that Volkswagen AG may conduct a due diligence audit on Proton as discussions on a possible tie-up including stake transfer progresses further. Recent newspaper reports have suggested that Volkswagen is the forerunner in the bid to partner with Proton. Volkswagen’s possible 51% purchase into Proton’s manufacturing unit is said to be worth RM 2 billion ringgit, which will result in Proton gaining knowledge through tech transfers as well as a capital injection. Initially, Volkswagen might use Tanjung Malim to assemble the Volkswagen Passat model for the Japan market, taking advantage of Malaysia’s free trade agreement with Japan.

This will result in Volkswagen holding Proton’s manufacturing unit shares, but what is to happen to the government’s 43% stake in the main company Proton Holdings Bhd? This might be where the local partner comes in, a company like DRB-HICOM or Naza could purchase part or all of this stake from the government. Volkswagen is said to have the edge over PSA Peugeot-Citroen because PSA Peugeot-Citroen is interested in a partnership that could involve sales and joint model development collaboration but it did not want to involve a stake transfer.

Sources: IHT, Bernama

Related Posts:
JMEPA: The reason Volkswagen wants Proton?
Proton stake purchase updates
PSA Peugeot Citroen and Proton to meet next week
DRB-HICOM wants to help Proton
DRB-HICOM confirms Proton share purchase talk
Government gives green light to foreign control in Proton

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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

  • tango5 (Member) on Dec 13, 2006 at 4:51 pm

    heard that this tie-up would resulted to the ceased of use of the renault engine by the Savvy – which explains the rumours on Savvy 1.3 Campro.

    a QUESTION; what will happen to all those Renault powered Savvy? P1 might have acceptable plan for customers overseas, hope it wont neglect local supporters…or else, Savvy will become the next Tiara!

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  • ckengyo (Member) on Dec 13, 2006 at 7:01 pm

    if really can tie-up, so many option can get from vw. 1.4 twin charger with dsg sounds perfect. the questions is: will proton get state of art technology or opt 4 last century technology 4 filthy rich profit. base on history later 1 most probably realise.

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  • osh_kosh (Member) on Dec 13, 2006 at 7:13 pm

    hmmm..

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  • intermilan (Member) on Dec 13, 2006 at 7:14 pm

    hopefully the renault-engine savvy won't be neglected as it is very 'sakit hati' if pisang berbuah 2 kali.

    But to fit the campro in savvy is easier romour than done. where to put the Renault AMT gearbox? change of engine in Savvy required major overhaul of its core design and setup.

    For this sekejap tukar-tukar car design & engineering road map plus sekejap buat ini, sekejap buat itu mentality..

    where is the financial benefits, customer confidence and product stability ahh?

    This is a few of many core characteristics of Potong that makes everybody hate 'em.

    Is this an automotive company or share market (where almost everyone dunno what will happen next)?

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  • Initial D (Member) on Dec 13, 2006 at 7:18 pm

    oooo……….so they are doing audit, hope they wont get heart attack when they discover many problems.

    Anyway, let's c how it goes.

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  • tanasi (Member) on Dec 13, 2006 at 7:51 pm

    since when is this thread about the savvy changing to campro engine?

    Anyway, regardless of the owner of Proton, as long as savvy owners are around so is the demand for savvy spare parts.

    Plus, if u wanna talk about economics, it makes perfect sense to fit the savvy with the campro to increase the production and economies of scale…

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  • bmpower (Member) on Dec 13, 2006 at 8:12 pm

    welcome bashers!..

    anyway.. who the hell bringing this topic to savvy with 1.3 engine?

    err.. good what?.. small car with powerfull engine.. instead the under power car like…. small mpv with 1.0 engine.. huh!

    the changing2 part is not good somehow.. but if they can get a better result.. that should be great.. but if Proton.. anything great still considered stupid from many basher view..

    The mini cooper s , small with above than 1.5 engine! Imagine that…

    Aiya… goverment looklike LOSING MONEY. wanna sold everything.. create nothing.. what Pak Lah's doing???? Sooner MAS will sold then petronas will sold..

    Rakyat like you all Clapping again your hand.. indeed….

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  • motorhead (Member) on Dec 13, 2006 at 8:50 pm

    Audit.. good la… let them do the digging… gosh!!!, guess what they'll find?? SHITTT!!..

    Hehehe.. hope u guys enjoyed my stupid joke…

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  • protonGL (Member) on Dec 13, 2006 at 8:53 pm

    i belive vw will have higher standard of qc ,

    VENDOR…no play play, no boleh laaaa, take it laaaa, no lebih kurang!

    dot care who you are, what you are,

    this is VW (Very Well standard), we dont make rubbish!

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  • maxtek (Member) on Dec 13, 2006 at 9:03 pm

    To VW, welcome to Malaysia and congrats on your 3S openings around.

    Hold on a sec, if Proton is sold, means that the govern won't givva' sh*t about the company anymore ain't it? If that happens, oh God tell me that the tax for cars will change forever!

    But then again, I always wanted P1 to crash, burn and rot the way I liked it… Mahatir, you over-confident son-of-a-gun, thanks to you, P1 is what it is today…

    Also, I recently read an article, saying that Lotus is going to "Lotus-ify" P1's Neo. Making it a hot hatch like the GTi and due to be released sometime in 2008… THAT is a SUPER-STUPID move. Why go Hot-Hatching when you know the quality is goin' to be as sh*tty as ever?

    P.S. Hey VW, take all the advantages and out-smart Proton of their stupid offerings, their ships is sinking and they're looking for a host to live in like a parasite…

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  • w_lighter (Member) on Dec 13, 2006 at 10:09 pm

    Neo being Lotus-ify is ok. But the campro engine is just a big NO NO…. sick wei tht engine.

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  • protonGL (Member) on Dec 14, 2006 at 2:28 am

    anyway vw what ever , this is a world of automotive business, can proton make sale, not talking, 50,000 cars but hundred thousands ….then there will be a profit, then protection to be pulled out, i guess, if not ..old same fate, rakyat protected proton even at the local market,

    after vw .still campro-ing (less efficient engine,)-useless

    ok la with vw, firmed up interior, twin-charger, dsg , even exterior finishes to need hold to it place, then probally it makes sense

    BUT then our production cost? labour? can it compete to give a competitive price?, like the thai, indon, even china, i think its too optimistic to say yes proton can.

    can proton cope with a fast developed tech. now, ok la vw help, but we have to materialised it,

    ok every thing ok la, to SELL CAR i mean MASS produced car?, for me vw come 'sewa kedai' or workshop to sell their car, and give job opportunity,mass producing proton is not their main job, this tanjung malim part of their(vw) already massed produced car.

    remember last time economic boom, car demand are high, they cant cope with demand, LOCALLY, but then got the tanjung malim, now to be overtaken by vw…..CAN PROTON MASS PRODUCED????

    so the question is REALLY is proton going for a MASS produced car, ?

    (regarding the capacity of plant given to vw)

    ooooops plant in indon, ye ke takes years from now and (if really want to do it dont build istana or send someone making teh tarik on the moon, need money for that…..again we pay)

    WOULD the vw care about proton business?

    they only 51 of it, ( saya sewa kedai saja) i dah janji bagi u tech, buat la with 49% strength,

    REALLLY NEED A CAREFUL FEASIBILITY STUDY THERE,

    or it just the begining, but can proton catch up, how long is the time allowence needed or it a short term savior that soon benefited the vw when proton waving white flag,

    if it is the begining its gonna be huge, neeeeeed more money for infrastructure, remember MASSSSS PRODUDE,again we pay for it not knowing its a sucess or not.

    if not "SEWA KEDAI CONCEPT" .vw go on with their business, or at the end "BELI KEDAI", and we wound not have a chance to drive one, just like kilang adidas here ment for export, do we really enjoying adidas baju cheaply? we buy adidas from thailand cheap tiruan who cares, get what i mean.

    -any way the key for auto business huge demand and supply,

    if not dont even try, unless selling special hand made car sith super expencive price like bufori.( personally i dont like bufori car)

    -correct me if im wrong

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  • protonGL (Member) on Dec 14, 2006 at 2:54 am

    make car if benefit us, dont if not,

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  • protonGL (Member) on Dec 14, 2006 at 3:45 am

    lastly ,there is no way proton mass producing car , naza and peugeot come in to rebadge car for locals, export if theres an opportunity,

    vw sewa kedai perhaps ,others like diamler will follow the unused plant, indon maybe,

    waja , g 2 will go for classic edition, left over sent to somewhere else , heard indon isinit?

    paklah dont want proton its mahathir's

    …(end of a tale)

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  • waimak (Member) on Dec 14, 2006 at 4:50 pm

    due d is a must or sometimes just a formality.

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  • Cire (Member) on Dec 14, 2006 at 6:31 pm

    At 51%, VW have done most of the homework it needed already. Now is to see the finer details of things to ensure that there is no hidden cost, and liabilities, like human capital/union etc.

    VW being a veteren of workers' union negotiations, would have no problem in dealing with the locals, not unless the G decided to interject in the former's plan. P1 biggest problem is its human capital's mentality. It got to change. No amount of money dump in will move the plant, if there's no drastic move to create a more dynamic and modern workforce.

    This done, the trend will move outside P1, the vendors. If they are not shaken by the take over from a foreign partner, then they are destined to be doomed.

    Hoping that local "champion" like naza and mofaz would take over the

    P1, so that they could still continue with the poor ways, will not happen. It will only pulled both p1 and the partner company down even faster. Resorting to only pumping in cash, and no long term technological advantage, this sort of local-p1 partnership would not work.

    IMHO, VW will project its passat out, and at the same time, a lower version or perhaps Msian's version of passat may also simultaneously roll out of the TM plant.

    Being the heavy investment VW put in, it will not be an overnight short term business. If all the things work out as it is, that area will not be called a Proton city, it will be called VW City, similar with Wolfsburg, Germany.

    Let's hope this materialise.

    As for savvy, it may need to be relocated back to SAlam, in order not to have a clash of interest – renault-vw.

    P1, being bitten once, is shy to be bitten again, and hence the parts and components for its savvy would not be exhausted even when the engine is being discontinued. I am sure there is a long term understanding and agreement between p1 and renault on this. Furthermore, the clio in eu is still being produced.

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  • normal_user (Member) on Dec 14, 2006 at 6:43 pm

    To all the bashers out there, although we hate P1 & the G for what they did, I'm sure there's a glare of hope among all of us that our national carmaker will be 'Skodified by VW' in a few years to come.

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  • motorhead (Member) on Dec 14, 2006 at 6:58 pm

    Yeah.. betul… better perform, or just go & die for good… last not least, make sure abolish the stupid duties by 2010… we suffer long enuf!!

    ps: corrective actions r welcome!

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  • benGkhorkhor (Member) on Dec 14, 2006 at 7:04 pm

    My first comment here.

    JoeOoi no comments yet?

    I must say i agree with most of what JoeOoi mention in the JMPEA topic thread.

    also what ProtonGL here mention. is Proton really capable of going towards mass production and sell like any other automotive car mabufacturer.How many more years it still wants to be protected and being spoonfed by our G and people.

    IMHO this VW tie up wont materialise and even if it does it will only be on some joint venture projects.Maybe just sign some further MOU's on certain tech transfers or R&D.

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  • benGkhorkhor (Member) on Dec 14, 2006 at 9:51 pm

    Phew…

    Just back from Proton factory.

    Report: Not so good.

    All the best to them!

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  • motorhead (Member) on Dec 14, 2006 at 10:54 pm

    just look at the stock yard, can know how they r doing oredi.

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  • Joe Ooi (Member) on Dec 14, 2006 at 11:27 pm

    benGkhorkhor, are you from VW or consultant appointed by VW to do audit on P1?

    Anyway, I will be back likely by tonight with very "long air" comment – "audit" on Tg Malim plant in term engineering and commercial potential! My writing also come (not bashing) to conclusion that it is "below par"!

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  • Joe Ooi (Member) on Dec 15, 2006 at 5:39 am

    Well, well, the verdict for P1 is out there. There are many constructive criticisms about the current state of P1. Say what we can say, but the reality is P1 have no future if they still want to maintain present setup. Let do a simple holistic study on the environment of car industry by conducting PESTI analysis (Political/legal, Economics, Social, Technology and International).

    1. POLITICAL/LEGAL

    Look at our political scenario, basically it is very stable and attractive to business environment, especially to attract FDI. However, biz and politics shouldn’t mix as what happen in P1 now because political and economic (i.e. biz) decision always mutual exclusive. Our country biz environment is that they like to appoint politicians to sit on the board so that they can lobby for the G privilege. This included implementing policy that is given privileges to the Proton under NAP protective measures, at the expanse of consumers. Therefore, this crappy NAP lead to Malaysian automotive industry becomes protected and consumers become captive market with a scenario – “consumer force to take what P1 give”.

    However, this policy at most can work and is limited to the territory and sphere of political influence within Malaysia. Outside Bolehland (i.e. export market) is a pariah that “allow parasite to flourish”, but rubbish in term of long-term automotive sector growth and attract foreign investment.

    2. ECONOMICS

    P1 is economically not viable since its inception. P1 products never achieve economy of scale – cost effective in term of achieves lowest production cost per unit. In other word, the lowest cost per unit for any models produced by them in relation to the life cycle of the product. In term of competition, P1 is NUT. Forever, P1 with political-economic-xenophobia-NAP connection can’t compete at open market outside Bolehland.

    In truth/”net” economic perspective, P1 is a liability to rakyat rather than creating wealth. If P1 ever claiming to create wealth to nation, then they should stop sucking RM from rakyat. Disassociate P1 from draconian plus disproportionate tax-base NAP and go to conquer the international markets like Japan, US, Europe continental, China or any part of the world and bring back Yen, USD, Euro, GBP, Yuan, etc to enrich Bolehland! Currently P1 adopted bad business model that comprise the following: –

    a. Local market – sell at relatively high price, but with lowest quality.

    b. Export market – sell at relatively low price (sometime below cost) but with highest quality (sometime more than competitor give, i.e. more than 5 year warranty).

    The above is achieved by compelling local consumers paying high prices under NAP to make P1 profitable and subsidize export market. Do P1 can do and maintain this if the target to export and achieve 100,000 units by 2008 is accomplished? For Nay sayer, if P1 still maintain current bad biz model, it is not surprisingly the sales may plummet below 100,000 units for local and export market given the hostile dog-eat-dog automotive environment. Long term and good business model shall adopt: –

    a. Local market – sell at relatively LOWEST price, but with BEST quality in its class.

    b. Export market – sell at relatively most competitive price but with highest quality in its class.

    3. SOCIAL

    Do P1 have any corporate social responsibility (CSR)? The answer is absolutely no. There are some of those who put comments here still argue some of us looking for low price with good quality car is selfish, and not think for the nation, support P1 and consider where you live. Let put the fact straight to the point, what is the objective of P1 existence? Is it a social/community/welfare project? The answer is big no. P1 shall be commercial entity selling auto goods and services. Why ask rakyat to support P1 and never ask P1 protect and support consumers.

    Let open the market, let Toyota, Honda or Nissan selling Corolla Altis, Civic or Sentra at around RM 55K to RM 70K. At this price range, it is still out of affordability for ordinary Ahmad, Ah Chong or Muthu who are “kais pagi makan pagi, kais petang makan petang. If Proton claims that it is national project, then come in the market as a savor and protect the rakyat, say selling Savvy at RM 25K and Waja at RM 35K! Can Proton protect and support rakyat? If can’t, what is the point of P1 existence and claim to be “national icon”? The naked truth is P1 pricing policy in relation to quality of cars for local and export market is blatant disrespect and disgrace to the rakyat (i.e. got NAP to manipulate passive and captive consumer mah ……..)

    4. TECHNOLOGY

    In term of Research and Development (R & D), innovation and technology, look at geographical location of new spanking Tg. Malim plant, which suppose to enable P1 to increase volume to compete in international market. Let us see Toyota and Mercedes, both of them located their R & D in the most technologically advance location like Toyota City and Merc R & D among other located at Silicon Valley to monitor/capture the latest technological innovation in the world.

    But what P1 can do and what latest technological innovation can capture at Klang and Bernam Valleys like Center of Excellence at Shah Alam new glittery showroom and new spanking Tg. Malim factory? Since Tanjong Malim plant is suppose to be future competitive edge for Proton, let us describe in brief the “local-man-perspective” on Tanjong Malim and its surrounding areas: –

    a. From Selangor side (Batang Kali direction), nearby is Kampong Baru Kalumpang has Chong How Fook Restaurant serving among local famous dish is nutritious “steam frog with ginger” (non-halal).

    b. Nearby main trunk road beside JPJ Jabatan Timbang there is Tom Yam restaurant stall serving nice seafood dish (halal). But this JPJ station is a speed trap for unaware motorist (speed limit 60 Km/H).

    c. On the way enter Tg. Tanjong Malim town there is Universiti Pendidikan Sultan Idris (formerly MPSI). Basically this institution of higher learning offer education related subjects but not offer automotive related course(s).

    d. At adjacent Taman University, there is Fu Man restaurant (non-halal) and of course famous Tanjong Malim pau, Yik Mun Restaurant (halal).

    e. There are few housing estates along Jalan Slim Lama to Proton factory like Taman Bernam Baru and ghostly township of Kota Malim Prima adjacent to Chinese cemetery. Other are Buddhist Temple and Sekolah Menengah Katolik.

    f. Then come to idyllic Tanjong Malim town itself. There is road call Jalan Loke Yew with long closed old cinema, hawker center and few shops and Taman Bunga Raya. Along Jalan Chong Ah Peng are Maybank, Public Bank, shops selling books and stationery like Pustaka Sanmin, furniture, bicycle, and other shop selling daily essential. Jalan Besar house Bank Nasional, restaurant, Telekom and behind is one halal seafood restaurant (masakan Kelantan) at old bus stop serving nice food. On the other side of railway is Jalan Kotoyong with Pos Malaysia, Chinese Primary School, traditional kampong and few small housing estates like Taman Anggerik Desa mainly serving housing accommodation for UPSI students.

    g. From federal main trunk road toward Ipoh direction, we can find Ayam Kampong Restaurant (halal) serving nice food (beside secondary school), Kampong Suharto (mostly descendent of Javanese on Selangor side), Behrang 2020 township, Majlis Daerah Tanjong Malim, Behrang Tol Plaza, Tanjong Malim Polytechnic and one street cowboy town Behrang Stesyen before reaching Slim River.

    h. At the backdrop of Proton Plant is Titiwangsa Range constitutes mainly forest reserve and the adjacent INSTUN (Institut Ukur Negara) and Australian inspired design concept Diamond Creek golf resort with abandon partially completed clubhouse.

    i. Also there is housing area within Proton city plus few vendors/suppliers factories and some located nearby at Kota Malim Prima terrace and semi-dee factories lots. However, look at some of this vendors put some of unfinished components (i.e. believed to be Gen-2 bumper) at road shoulder or strewn around any empty space within factory compound, it look like “Ah Beng” backyard workshop!

    j. Occasionally we can enjoy the sound of chirping birds, fresh air, quite environment and sometime the paw mark of wild boars at fruits orchard behind Kota Malim Prima belong to MCA members). If lucky enough, sometime can find Tongkat Ali root in nearby secondary jungle. The surrounding areas are mainly rubber estate and palm oil plantation and few small villages like Ulu Slim. Best time is during durian season, there are good King of the fruits to enjoy.

    The geography location of Tanjong Malim is perfectly ideal if set up factory for agro-based industry. However, there are few points/questions to ponder: –

    • For automotive sector, it is disgrace political decision to bring development to this area, which is mutually exclusive with strategic commercial endeavor in term of capture latest trend in technological innovation.

    • What automotive related technology Proton can gain at Tanjong Malim? The P1 factory located previously is jungle and belongs to state land that alienate as 99 year lease hold to Proton City.

    • Does the planned physically futuristic Proton City have the same advantage or on par with say Toyota City in Japan?

    • Does Proton have the human expertise/intelligent and other resources to turn Bernam Valley into “Silicon Valley of Malaysia”?

    • The surrounding population education on average is secondary level only (no offence to the local residents), how do Proton looking for suitable and highly skills workers? If P1 want to attract human resources from other part of the country, how many “urbanites” like the idealistic countryside environment at Tanjong Malim?

    5. INTERNATIONAL

    The international biz environment is best described as unpredictable, at worst very hostile. Free Trades Agreement (FTA) like AFTA, WTO, etc were only allowed those who are the fittest, meanest, strongest, versatile, innovative, biggest, etc can compete and survive in the open dog-eat-dog market. On international front, P1 is the underdog and minnow not only have bad quality reputation but in auto sector, quantity (volume) is most important factor in survival in volatile yet surplus output on global scale. P1 lack both quality and quantity, if P1 go outside Bolehland, then it will be at the “mercy of merciless competitors”.

    CONCLUSIONS

    So, current SZ effort to improve efficiency, transparency, etc should be commended but it is limited to INTERNAL “house cleaning” only as per PWC report (i.e. free from “encumbrances” like crocs and incompetent vendors/suppliers). Once SZ able to achieve his effort in “house cleaning”, the real major challenge for P1 long-term survival is to deal effectively with the EXTERNAL environment factors, PESTI! Can SZ, or more specifically P1 make it even if the P1’s house is “sparkling clean” given current operation mode and structure? The fate of P1 is already written at “gravestone” if still continue operating with present mode under NAP!

    P1 long-term survival is probable, but likely on the 3 scenarios as mentioned below: –

    • P1 can’t survive in long term as independent manufacturer, but should have tie-up with world player(s) perhaps similar to P2, or to identify further oversea market expansion, raise fresh fund, buy new technologies and forge strategic alliances with foreign carmakers – VW.

    • Become contract assemblers.

    • Let foreigner take up majority share and/or become MNC, rather than GLC! No such thing as “white elephant” project want to claim covet title of “national pride”, “national icon”, “patriotism”, etc, etc, for commercial entity. Of course the interest of the current owner of this entity may have to deal with in the best interest of tax-payers.

    Can SZ as commercial director, albeit salary man allowed a free hand to make the above change(s) by the “invincible hand” behind the scene, apart from his current effort to “clean up the house”? More urgently is that are P1 having the resources, capital, human expertise, R & D and innovation to come out with world class product to compete in this fierce market? How to overcome its cringe-making market share?

    As a consumer and tax-payers like me, personally I don’t bother at all what happening toward P1 if I don’t use P1 product, P1 don’t use tax-payer money or consumers do not “squeeze until last drop of juice” under NAP. P1 is just another typical biz entity incorporated under company act and subjected to bankruptcy law, and why ask rakyat to sacrifice their hard earn money for its hullabaloo existence? If this is applicable to every company incorporated in Malaysia? Then perhaps we as a rakyat have to scarify for over 600,000 companies registered under Suruhanjaya Syarikat Malaysia (SSM), by virtue of it is Malaysian? ANY LOGIC?

    Is it P1 is sacred cow that need to be protected at all cost? Why don’t ask P1 to be “patriotic” by protect rakyat (by selling car below cost/with subsidy – no CarTaxLand), just like our Angkatan Tentera Malaysia look after and protect the security of nation? We as rakyat have to show our patriotism toward nation, every fallen soldier in defense of our country deserves heroic respect. If P1 fallen, is it an offending all-important Malaysian pride? The sooner P1 “disappear” is better! He, he, ……. less one of the “biggest-pest” in Bolehland, life will be better without P1 for ordinary citizens with limited income!

    22 years of existence yet still burden tax-payers are way too long for P1 to ask for and/or argue need more time and protection. If we based on the average life-cycle of mass car is 5 year, then 22 year is approximately 4 generation. For human, one generation is approximately 33 years. That why almost all leasehold properties is 99 year means the design/lifespan of the house is to accommodate 3 generation. If our nation development are at the pace the way P1 progress, then we may need at least 4 generation to see significant (world class) accomplishments. That means KLCC twin tower, KL tower, KLIA, Sepang F1, Putrajaya, LRT, etc, can only be built at around 1957+33×4 = 2089? Now we accomplished these feats in 2nd generation, means protection extended to P1 at most should be 10 year? Oh ai yo yo, ……… long overdue protection! But the naked truth is no protection yet “terrible experience” for rakyat/consumers on low quality plus unsafe cars that are R3 – Risky Ride on theRoad that make car driver very “cheap” on the road!

    On the value of Tg Malim plant? I think if VW interested on “salvage value” is consider lucky as even on the world scale, only a few player can and interested to buy give its shear size!

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  • benGkhorkhor (Member) on Dec 15, 2006 at 6:47 pm

    Now thats a AlJazeera material write up.

    Bro Joe, im not hired by VW nor an auditor of any sorts. Just a regular joe who happens to be in an industry related to automotive.

    Not qualified to be an auditor for now.

    All above are well said and stated out.

    Protons Tg Malim plant according to TUV auditors to what i found out from P1 vendor are the most advanced in terms of machining capabilities in South East Asia.

    If fully utilise will become a competitive manufacturing hub in this region and a force to be reckon with.

    Unfortunately, this is not the case.As we all know the plant is not running at full capacity yet and with all hardware costing billions of ringgit in placed, they seriously lack the proper people behind to run the hardware.In short no one is qualified or capable to utilise the hardwares in placed. how sad is that.

    Proton IMHO does not funtion as a business entity rather more of a political entity.And they talk about national interest and national pride.Who's pride and interest is involved here,thats a thought to ponder.

    Does it mean if i dont drive a Proton makes me a lesser Malaysian?

    It is often mention that Proton contributes to the economy is terms of creating jobs for the public.But is that not a rational thing in business to setup up a plant and hire people so that in return you can also make a profit and get your goods and services out to the market. Its basically a win-win situation.

    You dont take credit for that unless you can say that you dont pay salaries to the people you employ.

    Thai and Indonesia are examples of not having a so called national car and yet manage to attract major car manufacturing to setup facilities in their respective countries.

    Proton is just racing against time and it must run at a very fast pace in order to survive in the current market environment.

    Due to too much red tape and politics involve, current MD route to bring up Proton again is going to a rough,tough and long ride.

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  • Joe Ooi (Member) on Dec 16, 2006 at 8:13 am

    Tg Malim plant is first world infrastructure for automotive but have third world mentality workers!

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  • NeedGoodCar (Member) on Dec 16, 2006 at 6:21 pm

    Summary

    forget about p1, let's have VW for real.

    abolish nap, bite the bullect in the sense that second hand car price suffers.

    open up the automotive industry.

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