Proton has posted it’s third straight quarterly loss, losing RM 281.5 million in the third quarter ending December 31 2006, compared to the previous quarter’s profit of RM 86.5 million. Proton’s nine-month pre-tax loss ended up a huge sum of RM 608.028 million compared with the previous year’s pre-tax loss of RM 72.888 million during the same period.
Revenue for the period fell to RM 3.655 billion from RM 6.012 billion the year before… nearly half! Perhaps this is understandable, as sales towards the end of the year generally dwindles for everyone, as people hold back their automobile purchases for the beginning of the next year so that the car they buy would not devalue instantly as the clock strikes midnight on January 1st. Proton cites poor car sales, higher fuel prices and a one-off cost of RM 27 million to restructure Lotus as the main contributors to this loss.
Proton is due to partner up with a foreign automaker soon, which might be either Volkswagen, Peugeot or GM, however analysts say it might take at least eight quarters – or two full years for the business to turn around. Second Finance Minister Tan Sri Nor Mohamed Yakcop says the partnership will be announced before the end of March 2007. Business Times reported that Khazanah Nasional officials met up with top officials of Volkswagen and General Motors early this week.
Apparently, Khazanah was surprised at the comprehensiveness of Volkswagen’s proposal. Initially, it was thought that Volkswagen only wanted a stake in Proton’s manufacturing, but apparently the proposal includes stakes in Proton’s distribution unit (but of course… you should know why!) plus its research and development arm.
For a small shimmering light of hope in the midst of these black clouds, we can have a look at how Volkswagen has managed to turn two ailing European manufacturers around – Seat and Skoda. Seat recently posted a net loss of 226.6 million ringgit in 2006, less than its 288.5 million ringgit loss the previous year – while still a loss, it is an improvement. Note that Seat had a decade of positive results which ended in 2005 which is when the losses began.
Skoda however, has been profitable and 2006 was a year of record sales for Skoda, this is despite market stagnation in Europe. 2006 sales went up 11.7 percent, while production went up 12.6 percent. Correspondingly, sales revenue went up 8.7% to US$9.5 billion (33 billion ringgit), pushing operational profit up 34% to US$ 677.2 million or 2.36 billion ringgit. Amazing huh? Volkswagen took Skoda’s reins in 1991 with an initial stake, and later upped it to full ownership.
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So, will we be seeing cheaper Volkswagens or better-built Protons soon? Or is it gonna be another dream for us Malaysians again?
proton should go for vw.
then we shall see perodua go down the drain.
Padan muka.
Hahaha….Proton looses 281million and blames 27mill (which is like 3mill BP) on the Lotus restructuring….. convert everythign to ringgit and you inflate how big it is. Come to think of it, what at lotus needed re-structuring?
Most major manufacturers (car or others) have products which are loss leaders. That is nothing new to sell items below margin for brand image or pull market share.
The thing is, if Proton cannot convince Malaysians to buy proton even with all these "help", they are doomed.
27 MILLION on restructuring what exactly? Sometimes you can restructure without spending anything what … can even gain. Dunno lah …
Cheaper VW? Quality built Proton?
It will take another 3 years for that !!!
company restructuring sure need money (example: paying Pricewater House for re-engineering the company structure – human manpower and resources), but 27M is a bit too much for that :)
Anyway, I personally think that Proton cannot survive here simply because:
1. The market volume is too small in Msia, furthermore, it is saturated (even Toyota, Honda, Nissan having hard time selling their car now)
2. Proton is unable to compete in open market in the overseas. Branding is not strong, with bad feedback from its home country and bad management (I have seen abandoned Proton showroom in Manila). All these failure factors contribute to poor sales. Asean countries bought some Proton just to "give face" to Msia only, not bec it is good.
Why proton doesn't cites"year end bonus" as part of their quarterly loss?
I'm quite sure all the staff in proton received year end bonus,especially senior mgmt,directors…Got any idea how many months of bonus they receive?
BTW,why the proton MD is awarded the "Datuk" title when making a loss,whereas MAS is turning profit and yet no datuk for Idris Jala!
i remember the chrysler dumped by dymler,
they cant sell car, i think american prefer chevy or something from GM,
chrysler sold only in the US mostly and few in middle east i guess, and and non in asian continent even europe, (unlike european cars which accepted in asia), they cant make sale and unporfitable,chrysler not a world wide selling car,
well the other side of the story, vw revive skoda so good, well skoda become a good car at last, perhaps the checs, (or whatever the owner of the scoda) taking too sweet time, vw take the opportunity to buy it at all, and its another profitable channel for vw , checs got nothing,
now we are talking about vw for savior, we are actually talking about deutch mark here,……….
personally im not promoting any negative thinking here, anyone who can revoke my tales up there,,,,please….
cheap VW for sale..
I really do hope that VW take over Proton for the good of everyone in Malaysia. They are the only company that I can think of that has experience of turning car producers from laughing stock to credible brands.
Look at this link, this is what Skoda were tunring out when VW came in http://www.geocities.com/MotorCity/Factory/4536/s…
Seat were not much better either!!
It won't come overnight, the products can come qucikly but brand image still takes time
IMHO
P1 poor sales are not purely bcoz of Malaysian's volume(small) but its bcoz G Tax applied to its Citizens!
Most citizen already knew, learned from past mistake(NAP)…
Citizen hold on their purchases, conclude to use their current car until its can't move, and wait until Tax free! (ha ha ha…….!)
The result, lesser demand, very-very less……
For those who can afford to buy car, they still buys others makes instead P1…
Padan muka! SO FUNNY! :)
quality, reliability, safety and brand's image matters!
Please GM, don't buy Proton. I don't wanna see a Savvy with a Chevrolet badge later on.
VW, please buy Proton, I'm driving a 1.8T Audi A4 B5. Please pass this chassis and engine to Proton, mass produce it, and replace Waja. Then I'll have cheaper spare parts.
oh… ya… you own a A4 RED right ?
Just curious, will you every put a P1 made A4 door into you Audi A4 ?
Will you ?
But i think you definately choose to put Skoda door into your Audi!!! :)
buang longkang,
or close shop,
the boss also to go,
for dignity sake, u know this is not a job that u can have
a freehand, stop to be suffering..
To turn around a car plant, the car plant itself must also possess good pedigree. Although not impossible, it would be interesting to see how an euro co. could match up with a jappie dna-ed automotive company.
They would have to do a renault-nissan maneouvers, but have to add in another must – no interference from political parties or G.
Bottom line is:
1. I really don't care what happens to p1 after years of bad luck with their cars.And I think a lot of people share my sentiment
2. Ultimately give us cheap cars like thailand. No more tax. Thats all.
Proton is a lausy manufacturer ! they only know how to dick the money into their pocket only. where korean car maker, they born about the same time with proton, look at them are so successful, hyundai and kia. how come proton could not like him? as we know why…..
hahaha…proton ni better close je la…menyusahkan rakyat je..orng2 ATAS dlm g pun patut blah je..
I just want cheap car, I don't care proton partners with US, Japan, or Germany.
As long as we have cheap car without the heavy tax, malaysia sale volumn will be sky high since people can change car every few years, it is normall in country like US.
Ha ha ha ha ha, the best news so far amid what happens in the stock market, that aside, to p1 supporters, i support your view that p1 should be given more time to shape up, bcos it is still relatively young in the automotive industry, even mindlah it's only 600m loss for 9 months, can still absorb more losses, suck more money from the people, stock market die everything almost gone…
Still LCLY wants to choose the so called right partner, just close shop, let VW have the Tanjung Malim plant, forget about the brand p1, we don need another skoda or seat, just give us VW, jetta, golf, polo, passat, toureg, beetle, etc….
Looking forward to more good news from p1, hopefully the losses incread to more than 1billion, ya ya ya, p1 boleh
cant attract buyers bcos quality sux so wot u do?
basic bizniz management pun pandai.
tumpang nama glamer jd big boss proton.
G will bail out proton.
so dun worry proton,ok?
top management not doin their jobs.
dun blame market sentiments…..
NeedGoodCar said,
Looking forward to more good news from p1, hopefully the losses incread to more than 1billion, ya ya ya, p1 boleh
—————
Aiya dude, just to complement the above, bad news from P1 is good news to rakyat!
STOP THE BUYING! STOP THE SUCKING!
I heard that P1 trying "damn hard" even to clear 2005 stock. Perdana selling at RM 85K! Pity, sigh …………
Let we celebrate the self-inflicted short term but fast dying P1 and free the rakyat from the cage of captive market under NAP!
kinda unrelated, but Autocar UK have tested the Satria Neo, read the online review: http://www.autocar.co.uk/CarReviews/FirstDrives/P…
reading the comments above, its kinda sad. typical kan? when sumthin local aint doin well (be it cars, sportsmen, economy) all will bang the G. but when things are smooth, all diam.
have sum sense of pride ppl, after all, we are Malaysians. If not happy, then u ppl blah la (to UK, aussie, s'pore) instead of askin G to blah. remember, the grass aint always greener on the other side…
[quote] tHe CuLpRit said,
kinda unrelated, but Autocar UK have tested the Satria Neo, read the online review: http://www.autocar.co.uk/CarReviews/FirstDrives/P… [/quote]
The OZies are less 'Clarksonish' compared to the Brits on the Satria Neo. Read on the review from GoAuto Australia…
http://www.goauto.com.au/mellor/mellor.nsf/RT/6EB…
The problem with our country is, when these big corporations earn, they practice capitalism (put in own pocket), when they lost money, it's communism (take from everyone's pocket).
come on laa.. its not about being unpatriotic et all, its about our money, the taxpayer lah… if p1 not bein sold, it will bail out by G lah.. i don' think p1 will close shop. how come u can sold somethin' that's no demand for it. p1 should use their brain, don just blame p2 or other makers. moreover G also taxes us, make new car overpriced and secondhand value drop down very teruk wan….
Perdana at $85k? new one??? really that bad ?
btw, aiyaa… lose again… when it's gonna stop?
i agreed with ingolstadt said;
coz those big copporation practices like this.
i think that they(p1) too dependant on the G side…
once loss money, G will back up then they used all the KWSP money to protect P1..
hey, they used our hard saving to protect a bunch of useless people on p1..
these worlds are business world..
if you not strong to compete, then step down..
————————————————————
ingolstadt said,
March 2, 2007 @ 9:48 am
The problem with our country is, when these big corporations earn, they practice capitalism (put in own pocket), when they lost money, it’s communism (take from everyone’s pocket).
no, perdana was actually RM75K-1st version was. This is the earliest version. Since year 1999-2000/I think with V6 came along, P1 increased the price by 5k every year just to get more benefits. That time there was no protonedar and EON was the only distributor. I think its because of the economy downfall aftermath people could not afford expansive cars so P1 decided to be greedy. Now they are actually so desperate to remove old stock that slashing prices back just to increase public enthusiasm of buying a executive saloon. The problem is that with the new price it shows that you can choose if you want a V6 or a Honda City.I will choose the latter as that one has good reputation and reliable over P1 cars. VW acquisition is someth ing good, but then it will be years before they introduce totally new models.
u all talk about car company also can end up asking others to blah to other countries… so childish. shows the kind of mentality some malaysians have.
back to proton's story, i don't think their sales will improve anytime soon. When a company's old products sell better than new ones, it tells you something.
i won't count on getting foreign brands cheaply if the deal goes through. remember, the main objective of the foreign partnership is to save Proton, not for your benefits. so, don't expect too much from all this.
a friend of mine changed his car recently. sold his 10+ yr old 1.5cc saga and bought a kancil. told me same almost same price. so much for affordable cars.
oh before i forget, is proton or perodua still enjoying rebates on duties and taxes?
oops…..although the press point out some bad points about the neo ,he cant resist the car being good at handling coupled with lusty engine, and admit its look too
…prepare to blast my brother's neo 1.6. …sssssh
First of all I'm not surprise that P1 lost so much for last quarter, poor vender system, poor after sales service n most of all their management teams!! Anythings happen also they have our big "G" gonna back them, keep pumpin in our tax payer money into it. If P1 really wanna change their management teams have put extra extra extra hardwork on it!! Not Just have to upgrade their quality of the cars n most of all the design of their car. Don't design those "shorty" car then export to other country let foreigner laugh at us. N don't even think that getting a foreign car maker will save them, one day their management teams n our big "G" won't open their mind n serious learn from their mistake there will not b any future for them, cos globalisation is cruel!! May God bless us all.
Poor supplier quality but with higher part cost,
Poor management policy,
Poor System,
Poor Technology,
How to fight to the global market.
A simply car cost so high price… without government help, Proton already close shop…
Thailand can produce cheap car with better quality than proton, why Malaysia's Proton can't ar?
ahahahaah cant stop laughing
hehehe…bogan!
go drive your falcodore!
but then again, i'll laugh with you this time.
in the end i also realize no matter how much proton loses…they wont die. coz of local pride.
This is how you get Proton Perdana at RM 85K but never mentioned it is clear old stock (i.e. model 2005)! Look like the depreciation of old stock is "on par" with second hand car! So don't buy Proton used car, buy old stock (for those die hard Protonian) since the depreciation is similar.
Below are the email message from the unknown sources: –
BRAND NEW PROTON PERDANA V6 2.0 AUTOMATIC
Is this your DREAM CAR? Can't afford to buy, I'll help you to make your dream car come true
Price for this car RM101,500.25,
Downpayment RM10,200.25
Monthly for 9 years RM1,157.31
Price to high? How if I cut the price!
Old price RM101,500.25..now the new price RM94,500.25
Can't afford to pay down payment? How if I cut down payment!
Old downpayment RM10,200.25 now the new down payment RM3,200.25
Still can't afford the downpayment?
How if i said no need to pay RM3,200.25 now the new downpayment would be "0"
How about the monthly?
Your salary RM1,500 only, bank will reject your application,
but you still want to drive your dream car? CALL ME I solve your problem
How about your old car?
We accept trade-in in high value, not to worry to loose your resale value
NOW I SURE YOU CAN AFFORD to drive your dream carÂ…
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Yahoo Messenger : [email protected]
Email : [email protected]
URL : http://blog.360.yahoo.com/blog-p6axqzYmeqhZwLm5ap…
see picture here : http://photos.yahoo.com/ph/wan_kereta/slideshow?….
today Proton selling Saga at little bit low price RM26,999.00 (please bear in mind, all those acc gone,this cheap version sure will come with all sort of problems), NEVER TRUST PROTON.
I am very happy on very low sell number of Proton best selling compare to Perodua's best.(please bear in mind also actually no such thing as PROTON'S BEST , PROTON are all rottens products.)
say bye2, to Perdana replacement project but yes to Proton owner replacment project.
KEEP THE BOYCOTT ON BUYING PROTON.
p/s be a wise 'rakyat', your hard earned money are not for Proton.
I heard the talk with VW is not going well. I also read an article on VW removing the old management team and doing the changes to the supposedly new 2007 models.
These I think dont work in favor of Proton. Worse, if the company keep recurring loss and in the end sold to the local company – so much for the talk and plan of foreign partnership.
So where is proton heading now??
I symphatise with Syed Zainal who just started his tenure with the company.
STOP THE BUYING, STOP THE SUCKING!
HIDUP RAKYAT, FREE US FROM THE SHACKLE OF NAP!
Money goes OUT more then IN…….Proton in DEEP deep trouble……
proton simple dont worth that much…a perdana v6 for over 100k, that is the biggest joke in our nation! latest hyundai sonata cvvt-i 2.0 only cost slightly more than it! wake up p1, if u wanna survive..sell it a lot cheaper and extend the warranty with unlimited km's like wat u've done in overseas! how on earth p1 treats their rakyat like so..provide us with limited warranty!? the fact that we buy more p1's then any other contry, we contribute the most sales to p1! so we demanded a better service and quality!
toking bout quality lol..it just plain suk ass! proton never want to improve, for instance waja, door handle and power windows..they had major faults when 1st launch, and now few years later with the "New" proton waja campro, same design, for sure same faults will occur! after all these years..all p1 does is privide rakyats with lots of problems, trouble free motoring? im gonna spit for that! Gen2: 2nd week of purchase, alternator gone faulty..2 months later, the whole central looking system gone mad!! come on proton!
anyhow..i'll go for p2 if for my budget car