Mofaz’s rationale for Proton stake

The Mofaz Group says it’s marketing and distribution strengths will be able to help turn Proton around, and is banking on this fact to win the Khazanah Nasional stake in Proton. “Technically, you have to go with the technical people. In terms of marketing and distribution, we are already very experienced in this field,” said Mofaz’s senior vice president Nik Izani Nik Ibrahim.

I’m not sure why a company that expects it’s 2007 sales growth to mainly come from it’s beverage sales thinks it can turn around an automotive company that has most of it’s woes in the manufacturing part, not sales and marketing part. There are plenty of Proton dealers – too many in fact! It’s manufacturing where Proton fails, not being able to get good economies of scale as well as not keeping up to international QC standards.

Proton needs a manufacturing and technical partner, not a marketing partner.

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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

  • matomyam (Member) on Apr 16, 2007 at 5:13 pm

    Proton needs to go bust

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  • REDDEVIL (Member) on Apr 16, 2007 at 5:14 pm

    ZZZZZ… I predict the join venture with VW will blow off.. and eventually Proton will remain in the hands of those idiots or numbs that only talks more than action. I guarantee Proton will close shop if they don't secure a strategic partner in near future.

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  • Gus-Gus (Member) on Apr 16, 2007 at 5:45 pm

    Die! Proton die!

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  • mr_em (Member) on Apr 16, 2007 at 5:48 pm

    at the end of the day, its about running a profitable business. if the products are not competitive, you cannot sustain 20-30 yrs to make them "artificially" competitive, plus all the suppliers are sucking dry the main business itself. If it has to close shop because how badly it was run from the beginning, so be it. the whole idea was 'flawed' from the very beginning, wrong business objectives, corporate/co. structure etc.

    hopefully, a justly (and fair) ending to what was started.

    i wait to welcome back the motoring days pre-1985.

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  • demio121 (Member) on Apr 16, 2007 at 5:53 pm

    if Proton goes to Mofaz, its like in US where biz goes to venture capitalist. These people are rather good at squeezing profit but only for short term profit. One fine day sell the biz off to make bigger profit.

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  • Mayonaise (Member) on Apr 16, 2007 at 6:09 pm

    Mofaz talking crap like they always do… Next!

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  • wuichi (Member) on Apr 16, 2007 at 6:17 pm

    they obtained lotus and still fail to produce quality cars *sigh* i think they need to do crash test on the cars before selling it and make the price more competitive lah

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  • superman (Member) on Apr 16, 2007 at 6:18 pm

    Paul, I agree with your last statement. Mofaz marketing ain't that great anyway.

    And yes , too many Proton dealers anyway.

    To Mofaz, Fauzy and this Nik Izani fella, wake up wei, this is not mineral water(alla fonte) you selling.. hahahaa

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  • BettaSplendens (Member) on Apr 16, 2007 at 6:22 pm

    Holly shit! that truely a car maker who onli wanto make profit!

    dun think malaysian will b able to escape frm this foolish &deceitful car maker for the rest of their life… :(

    Proton Boleeeeeeeeeeeeeeeeeeeeeeh!!

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  • tanasi (Member) on Apr 16, 2007 at 6:23 pm

    c'mon people….

    Proton isn't merely a car company, the problem at hand is more like a 25 year old policy…and it's broken.

    It's not hard to see why Paklah can't decide a thing, the general election is just around the corner, and if VW or any foreign partner takes over, they will bring along their vendors, and together with that the potential of local companies to go bust for not being able to supply to the new partnership.

    Proton themselves are quite helpless regarding this. This is what happens when engineering companies are subject to the whims of the political masters.

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  • nikanasz (Member) on Apr 16, 2007 at 7:09 pm

    duh, this is all politically motivated. they're not even interested in producing better cars with competitive pricing. proton needs technical/engineering expertise, not marketing help. peh, i don't see myself ever buying a proton if they don't get a strong partner.

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  • cyder300 (Member) on Apr 16, 2007 at 7:13 pm

    Really its not abt the greater benefits for the local car industry or being a solid regional player, its all abt lining those involved with money, tons of money. to heck with all the little people and suppliers who depends on them. Really boleh.

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  • tokmoh (Member) on Apr 16, 2007 at 8:26 pm

    It doesn't matter, all we need to do is change our lifestyle, n vote for the right ppl in the next GE. If Barang Naik lose in the nxt GE, it wouldn't be a big loss to the country (in reference to Sabah DCM quits, PL said it's nt a big loss to BN).

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  • auctioncenter2u (Member) on Apr 16, 2007 at 8:55 pm

    If Mofaz can turn PROTONG around then KFC or Macdonald also can do so lah! All these ppl really as stupid as PIG, only know how to eat and shit.

    Don't pretended you all are Genius or expertist or experienced ppl to turn PROTONG around, the case too COMPLICATED not the easy as 123….

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  • mofo (Member) on Apr 16, 2007 at 8:59 pm

    “Technically, you have to go with the technical people. In terms of marketing and distribution, we are already very experienced in this field,”

    LOL this is 2nd time i heard about them, 1st on newspaper and now 2nd time, i dunno what their nature of business also. Even self cant promote well.

    Negative + Negative = Positive

    Anyway

    Good "Marketing" + Bad Product = Good Sales ? LOL unless cheating.

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  • anasf (Member) on Apr 16, 2007 at 9:03 pm

    i beg to differ here. proton DO need a bigger market to be profitable. while they might not be producing the best of cars now, they really need to make it available in bigger market like India, Middle East, South America and Africa. They really need to go global.

    Maybe MOFAZ think they have the right the right connection to make it happen.

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  • maibatsu_thunder (Member) on Apr 16, 2007 at 9:10 pm

    Actually their Red Bull clone Carabao drink is not too bad. Not too cheap either though!

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  • Hikaru (Member) on Apr 16, 2007 at 11:34 pm

    Mofaz's is giving empty arguments to support Govt. from selling out the suppliers to VW. If Mofaz buys over, the govt. retains the votes from the suppliers.

    It seems like the negotiations with VW has stalled again and seems like VW is losing interest day by day as proton does further and further into the red by the day.

    "It doesn't matter." so they say…..How can it not matter? Oh it's not your money anyway…..

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  • aesthari (Member) on Apr 16, 2007 at 11:36 pm

    Funny guy, this Nik Izani Nik Ibrahim; he can't even tell between a technical and a marketing problem. How is he gonna turn Proton around? Just let Proton die, we'll be a happier lot.

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  • kei9 (Member) on Apr 16, 2007 at 11:49 pm

    wah! lots of negative comments!

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  • LittleFire85 (Member) on Apr 17, 2007 at 1:12 am

    If Proton fails to cooperate with VW or GM. I think they might just go and die.. The G is watching which can give them the most benefits in their pockets $$$… While we people still sit on those milo tin cars without DSC, Air bags and fail crash test cars… Time to change G! We need improvement!

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  • dzat46 (Member) on Apr 17, 2007 at 1:13 am

    anasf said,

    April 16, 2007 @ 1:03 pm

    i beg to differ here. proton DO need a bigger market to be profitable. while they might not be producing the best of cars now, they really need to make it available in bigger market like India, Middle East, South America and Africa. They really need to go global.

    Maybe MOFAZ think they have the right the right connection to make it happen.

    —————————————————————-

    Agreed wt u bout the need for bigger mkt…but thru MOFAZ???…lol….VW will definately YES…

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  • neo2 (Member) on Apr 17, 2007 at 1:34 am

    how long r we going 2 pretend that G is protecting national automobile industry? G is protecting all vendors that r living solely based on Proton. when it comes to croynisme, G is Proton n vice versa. it's not merely the few thousand jobs that G is protecting, is billion dollar income for those incompetent vendors who G is concerned, without them, where do u think the huge politics campaign money comes from? everything needs money n Proton is merely 1 of the politic apparatus 2 suck all the money from us! of course, all the above is merely my imagination without any proof n it never takes place. or is it the other way round?

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  • BettaSplendens (Member) on Apr 17, 2007 at 2:00 am

    bigger oversea market for P1???

    pls lar dun try to make more ppl mati by their milo tin cars b4 you REALLY SHOW UR IMPROVEMENT in the car making industry!

    malaysian hav no choice but oversea market got much more good quality, good design and safety car models available there man…

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  • Cire (Member) on Apr 17, 2007 at 2:58 am

    Basically, VW is NOT interested in Proton. It however IS interested in the plant.

    Whether there would be technological transfer or not, depends on how the G played the game. For them, proton is not worth saving, but there's potential for it to develop if the G let it have a free hand on it. And ofcourse the chronies got to go too-lah. Heard that some of the big chronies have went over to duetchland to look for potential partners.. LOL….think the ppl there is as dungu as them,ah?? Anyways, no harm done if they are willing to invest in modernising its facilities and jump-start their quality control…hm..could it be wishing for the moon here?

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  • mystvearn (Member) on Apr 17, 2007 at 4:31 am

    Paul, here is an inside story from a MOFAZ rep to me.

    Mofaz currently is the biggest seller of VW based cars (AP or not I am not sure). And by having stake in proton, mofaz HOPES that VW will appoint it as the DISTRO of VW cars thru P1. Basically mofaz HOPES to be the MIDDLE MAN between VW and Malaysia/SEA car sales.I am not sure if VW has the same idea what Mofaz is thinking, but there you go.

    Personally, if Mofaz suck at reviving P1, hope gov will inject cash into "national project"

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  • Malaysia BoXXX (Member) on Apr 17, 2007 at 4:38 am

    If Protong can't survive locally with all those unfair taxes/duties and politicians' protection, what's makes them survive orverseas? Innocent buyers from third world countries with their brain on the buttocks? Unfortunately, we are the one.

    Mofaz's rationale is like paying a Thai massage girl doing heart bypass for you. You will die for being so stupid. But wait, Mofaz is actually helping rakyat to kill their 25years old parasites. We should support Mofaz !

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  • mits27 (Member) on Apr 17, 2007 at 6:40 am

    Close shop proton, it will better for all of us…

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  • gow8 (Member) on Apr 17, 2007 at 7:09 am

    Sell proton or die. Malaysian's are paying a lot of money for their cars. Without Proton, majority of the population will be driving better cars from Japan.

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  • e-nabilll (Member) on Apr 17, 2007 at 7:10 am

    this is a msg for all those local corporations interested in proton , GIVE UP THE INTEREST ! u r all incompetent to turn proton around and have ZERO experience in situations like wat proton is in now….if p1 ends up in a local arm…this wil be an ABSOLUTE DISASTER….please VW….u seem to know how to manage properly…do take the stake…local companies please BUZZ OFF for gods sake !

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  • proton GL (Member) on Apr 17, 2007 at 7:18 am

    proton architectured by lotus which its chassis and suspension which is ok, yet havent give the best engine for proton,

    agree with paul it need manufacturing and tech partner to improve it material and built quality plus it an up to date engine,

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  • Joe Ooi (Member) on Apr 17, 2007 at 7:27 am

    kei9 said,

    April 16, 2007 @ 3:49 pm

    wah! lots of negative comments!

    —————

    Just to correct your statement, the right perspective is "wah! lots of positive comments on negative P1!"

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  • bugbear (Member) on Apr 17, 2007 at 7:30 am

    mofaz, plz go away!!

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  • Joe Ooi (Member) on Apr 17, 2007 at 7:54 am

    mofaz – another local want to goreng-goreng P1 share!

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  • Joe Ooi (Member) on Apr 17, 2007 at 8:08 am

    mofaz = moo fart!

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  • topgunthang (Member) on Apr 17, 2007 at 8:27 am

    mystvearn, your insider news paints a disturbing picture. basically mofaz wants to cash in on the government tax discounts and guaranteed insurance against bankruptcy that the proton pie provides.

    proton dont need a technical and manufacturing partner. they need to get out of the business quick. they cannot survive overseas. nobody could careless about buying a proton in an open market. and the news they seem to feed the malaysian public is always 'flowered' up to make them look very successful overseas and some people obviously are fooled into beleiving it(which is very sad to see esp when u are able to see first hand and know the truth of proton's performance overseas). its the official safety car for some not so known races coz nobody else wants to waste money on being the safety car of which most of the cars competing will be evo's and aussie v8's.

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  • Malaysia BoXXX (Member) on Apr 17, 2007 at 8:50 am

    Yes I felt the same with Topgunthang, the deal overseas is fantastic, I have heard (but not knowing in details) the deal in some country is even mind boggling, something like repurchase guarantee of a 1 year used Protong with fantastic value, just to get the sales number.

    In conclusion, its half free and half sell deal. This is made to fool local Malaysian (not foreigners), especially to small town or kampung folks.

    Can anybody here share with us more about our Protong overseas 'fantastic' half sell half free deal ???

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  • anasf (Member) on Apr 17, 2007 at 9:03 am

    proton has been improving lately… VW isn't interested in any kind of partnership. they just want to use tanjung malim to produce their car. this won't benefit us at all since i'm sure most of us can't afford to buy them.

    and if you think about it, the only way to get the government to lower duties on cars is to support proton. if government believe proton is strong, we will see lower car prices overall.

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  • ybng (Member) on Apr 17, 2007 at 6:34 pm

    This shows the intention is to make money, not save the national car and make money.

    This is the things to expect from our " entreprenuers ". Right ?

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  • volvolover (Member) on Apr 17, 2007 at 9:21 pm

    it's nothing to do with marketing. I personally think proton markets very well. It's their quality and pricing and lack of economies scale. So you can promote all you want but people won't buy. It's like if you go toilet do big business and call mofaz to promote selling your Shi*, will people buy or not?

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  • transformer (Member) on Apr 18, 2007 at 5:31 am

    ada gula, datang semut

    ada taik, datang juga lalat

    when there sugar, comes the ants

    when there shit, also came the flies

    Mofaz can't help much… more help are needed on their R&D, Supply Chain Management and most importantly those excesive unhealthy FAT! which a marketing specialist are not strong off! Thanks Mofaz! Just forget it!

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  • mystvearn (Member) on Apr 18, 2007 at 8:27 am

    topgunthang said,

    April 17, 2007 @ 12:27 am

    mystvearn, your insider news paints a disturbing picture. basically mofaz wants to cash in on the government tax discounts and guaranteed insurance against bankruptcy that the proton pie provides.

    …………..

    This is the inside info on Mofaz strategy, I dare not ask more. I got it first hand. How true it is, is yet to be seen.

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  • acbc (Member) on Apr 19, 2007 at 8:19 am

    Let's face it… Proton needs a foreign partner. Period. Why? After 20 years, we still can't produce reliable engines or cars. Mofaz is just a marketing company. They have nothing to give Proton. Plus, it may turn out like Naza… only assemble cars from China or Korea.

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  • ybng (Member) on Apr 20, 2007 at 12:01 am

    Hi Paul,

    I read somewhere that Spykers cars is trying to buy Lotus ? Any more news on that ?

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  • dinobros (Member) on Apr 22, 2007 at 2:10 am

    no offence but consumer know what they want.

    no longer the days where u can jus build using old lancer technology and sell for the next 15 years.

    the wira was actually a 80s mitsubishi lancer rite?

    how many model change has the lancer got.

    how many does the wira get?

    no offence but unless u can create value for the consumer.

    proton could unlikely make it in a global market.

    if u going for quality? theres the continental

    if ya going for reliability? theres the japanese

    if u want some thing cheap? theres the chinese

    want something pretty? there the italian

    something value for money? there the korean

    frankly what can proton give?

    not so high quality + not so high reliability + not so high technology = maybe i will get some other brand.

    juz personal view no offence to proton supporter.

    at least perodua know their stand. co operate with daihatsu and market their car as their own. at least its japan reliability + not too old technology @ low price.

    thus if proton is willing to find someone and offer to market their car as proton (example scion brand (toyota actually)) juz build and assemble it as proton then sell in market there there no scion brand then i think that may work out.

    maybe it juz the pride of the proton and the management and the shareholder that made them un willing to admit that the whole struture of proton has too many flaws.

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