A few stories that have appeared in the press recently gives an impression of an uncertain future for Proton, especially its management. First we learn that Proton’s current managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir contract is expiring at the end of this year, and talks to renew that contract have not yet begin.
Datuk Syed Zainal’s leadership has been considered by many as key to Proton’s recent relatively better performance, so this has caused some concern with investors. We as consumers are also naturally concerned as let’s face it – Protons and Peroduas are the only cars to consider for many of us, and for those who need the larger luggage space of a booted sedan, that choice is narrowed down to only Protons if you don’t want a used car. If Proton does badly, you can be sure that the Protons are going to be rolling out from Shah Alam and Tanjung Malim are going to be relatively worse, and I don’t just mean in terms of QC; which could happen as the result of disgruntled assembly line workers that are not paid enough. Not enough funds for R&D could also result in the second generation Proton Saga having a product lifespan as long as the first one.
StarBiz reported earlier this month quoting unnamed sources that the relationship between Proton’s executive management and its majority shareholder Khazanah Nasional had soured after Proton had convinced the cabinet to allow Proton to turn itself around on its own, while Khazanah was ready to go ahead with a an equity transfer partnership with the Volkswagen Group.
“In our view, Proton needs to basically integrate more into the global supply chain and the global market. Basically, we have not attained the kind of export penetration projected when the company was established. The global motor vehicle industry was undergoing a consolidation and Proton should be part of this trend. When Proton started 25 years ago, there were about 60 car manufacturers in the world. Now, there are 15 and in time this number may shrink to just half. So, you really have to recognise the industry’s consolidation. Size matters, and so do economy of scale. We need to be part of the bigger family in a way that works for us. Proton Holdings Bhd should continue to seek strategic alliances and further expand its market globally, and when we say alliances, we refer to those which may typically include equity ownership and partnership,” said Khazanah’s managing director Tan Sri Azman Mokhtar to Bernama yesterday.
We do not know what exactly was in the presentation that convinced the government to do a flip flop with its decision to partner Proton up with a foreign technical partner, but it seems like Khazanah is not very happy with how things are going now. Could Proton have promised more than it could deliver? This may have put Syed Zainal in Khazanah’s bad books, but I say if that is true, give the man more time to finish what he started!
He is already taking the company towards technical partnerships for low volume products, with in-house developed products to be limited only to those a few core models that are expected make up the majority of Proton’s sales volume. Core models would be between three to five models, and the first three will be the Proton Persona, the Proton Saga and an upcoming MPV due in 2009. The other two models would be unveiled later, or may not come to existence at all. Core platforms will be limited to two, with all models to be based on a modifications of these two core platforms. Small volume models will be done on a collaboration basis.
A new Perdana based on the Australian Mitsubishi Galant is possible if a smaller engine can be shoehorned into the car, but what is more likely is a car based on something readily-available with small engines such as a Mitsubishi Lancer with a toned down, less aggressive design much like what Mitsubishi Taiwan took with the Taiwanese Mitsubishi Lancer Fortis. After all, the current Perdana’s 2,635mm wheelbase is equal to the new generation Lancer’s 2,635mm wheelbase, and the Lancer is called a Galant in the Japanese market, so in terms of size it is somewhat viable.
In any case, any negotiations for partnerships involving taking up equity in Proton should not be too biased towards the foreign party now since Proton’s financial books are in a better condition now.
Take a walk back in time:
Proton-Volkswagen partnership: no go!
Proton-Volkswagen talks are OFF!
Why the Proton-Volkswagen partnership was a no-go: the inside scoop
Looking to sell your car? Sell it with Carro.
Obviously proton’s financial result improved/return to black mainly because of government grant given to proton amounting to RM194m. Some of my friends managed to show me the proton’s recent financial statement.
So maybe Khazanah have a second thought about the current management.
Another Saga from proton what next maybe tomorrow share will go up guys
it seems that khazanah just want to make quick money and not really interested to make proton better… they dont really want dsz to turn proton around… but i could be wrong….
so Khazanah still want strategic alliance? VW move to Thailand already.. hmmm
well, it looks like Khazanah is not confident that Proton would be able to survive long term, which is probably why it wanted another international manufacturing partner to boost it’s survival.
i don’t blame them, proton may look like it’s doing well, but think for a few minutes, look at the amount of grant given by the government, part of which comes from our taxes and the protectionism it is given.
loyalty to shareholders or loyalty to company?
Some powerplay here……..but at the end, it is cents & dollars that matters in business. Proton should know that you will never match the bigger, much established manufacturers. It is unwise to go head on with these big boys with similar product category…..instead e.g. make green cars that runs/based on electricity, solar, palm oil, gas etc aka alternative fuel and be very good at it. Technology is the key point.
But some will say ” if you can’t even do what you are doing right, how can you make cars that are even more advanced?”
This is another issue althogether, it is a matter of resources – who is stopping us in getting the best people in to work for Proton? It is just a matter of whether they want to do it and if they do, please get the people who are competent to do it, without fear or favour.
Interesting… If the new Perdana is going to use the Lancer Fortis as basic, then Waja is going to leave us?
The answer is why dont pick VW before? now change the mind again, before that General Motor, VW and even japanese car manufacturer is also few interesting, what asia automobile hub lar, this hub lau, now pokai already, what new saga & persona is the old design and enlarge it only, then sell the end product for another 15 to 20 years, the design must look impressive and wow, perdana alrealy in market 15 years if i not mistaken, how to improve? how to fight with toyota and honda? how to share the old platform to other manufacturer? can you proton learn from Daihatsu Boon? Hyundai is heind us before, now is top 5 in the world, proton, whay r u doing after 20 years? still cant even walk by your self? and khazanar, why just let your son sit overthere? let him walk. bangun dan jalan.
omy god, its hopeless….
really hopeless,
hopeless & hopeless
Close shop. Drop import taxes. Everyone happy. =p
I still can’t believe why Proton is still protected and locally owned. As you can see, we cannot sustain proton by ourselves and digging into tax payers money isn’t the solution. The golden opportunity was when VW was interested in Proton, but for some ‘nationalistic’ reasons they decided to call off the deal. Now many car companies are either owned by bigger corporations or went bankrupt. You think proton can still survive by itself? Does the management have any logic or reason to see how proton can survive by itself? I think we as the rakyat can see that from day 1, unless proton is affiliated by a larger car company it is doomed to fail.
is a good move for proton if they find a partner
but it is too late now (vw and psa are good partner but proton dunwan them!)
however ,if khazanah willing to share the proton with other manufacture without any silly syarat
it is ok for me at least can improve on quality but do not connect with china manufacture la, at this stage ,they are almost same with proton interm of almost everything .
mct siad,
is a good move for proton if they find a partner
but it is too late now (vw and psa are good partner but proton dunwan them!)
however ,if khazanah willing to share the proton with other manufacture without any silly syarat
it is ok for me at least can improve on quality but do not connect with china manufacture la, at this stage ,they are almost same with proton interm of almost everything .
__________________________________________________________________________
Chinese car manufacturers are much worse than Proton but maybe they will improve soon
nonengko said,
Some powerplay here……..but at the end, it is cents & dollars that matters in business. Proton should know that you will never match the bigger, much established manufacturers. It is unwise to go head on with these big boys with similar product category…..instead e.g. make green cars that runs/based on electricity, solar, palm oil, gas etc aka alternative fuel and be very good at it. Technology is the key point.
But some will say †if you can’t even do what you are doing right, how can you make cars that are even more advanced?â€
This is another issue althogether, it is a matter of resources – who is stopping us in getting the best people in to work for Proton? It is just a matter of whether they want to do it and if they do, please get the people who are competent to do it, without fear or favour.
__________________________________________________________________________
I completely agree with you, lets hope some bigshot from Proton reads your review and gets some ideas from it.
Better close shop. I had enuf of this “blame you-don’t blame me” excuses already. End of the day, the consumers suffer the consequences, being deprieved of car choices, and their value of hard earn money.
It is very clear that Proton does not need anyone else as it can compete on its own be locally or globally, proton has produced cars that sell well and it has proven its capability all these 20+ years. It is the foreign car makers who need proton and not the other way round.
To get a foreign partner?What an absurp idea?
Didnt we all see that proton is capable in producing wonderful cars that can compete with Toyota, GM, VW, etc. Didn’t we see that proton capture a big market share in Malaysia and we should believe it can do the same in the global market.
We have seen many great car makers gone bust during the last many many years but proton still stand firm on its feet and very much in the kicking now.
Ha ha ha….
What kind of talk cock this Khazanah man is trying to portray. Full of bullshit and now he sounds like all the blames and shits must be put merely on the head of Proton’s executives. So stupid ! Hey who’s the chairman of Proton ? It’s Khazanah’s boy. Who interviewed and selected Syed Zainal to the MD hot seat ? Who have the power and prerogative to endorse any significant proposal made by Proton’s executives which might affect and change the company direction? Certainly, Proton’s executives are subjected to their right to voice up any proposal which they think are good for the company and doesn’t Khazanah also have to play its part as a major shareholder to think and decide for the betterment of the company?
Why is it only now, you are telling all and sundry that your relationship with Proton’s execs have been getting sour since the episode of VW tied-up had been called off? Didn’t you also share the responsibility on that decision? Well, we the people actually don’t give a fcuk who should be blame or not. If shit happened, all of you are accountable for it. Proton is a car manufacturing company not a political party for god sake !! You got to work in a one strong team not like…ooh there are Team A, Team B and blablabla all that fool things.
Oh my god, if this is the way how you guys run a car company, then no wonder Proton notwithstanding it’s 25 years old still behave and perform like a retarded donkey.
By the way, don’t just preach and tease us with your business and economic sounds theories, those shits like economies-of-scale, partnership, alliances, and globalization. Now then you try to sound wiser while most of the people even man on the street have been talking and keep on telling you about the significant of these things since long time ago.
Toyota through only its Japan domestic plants has averagely sold at more than 110,000 cars per month and through their global operations can sell at more than 9.5 million a year. Even Suzuki and Daihatsu are selling more than 30,000 cars per month each in JDM. Koreans are also selling with big figures.
And now you tell me how many Proton can produce and sell a year?
Toyota one month sales is already more than 5 times of what Proton capable of to sell in one year !! Still you want to talk big and cocky with full of denials.
Well nevertheless, eventually you seem to wake up from your daydream. Better now than when the time is already come for you to go the graveyard.
hahahaha…wot a bunch of jokers in proton and khazanah…..and these jokers are given the responsibilities of handling mega million ringgit funds….meaning, we Malaysian are pretty much F*** becoz of these jokers…
In South Korea, lots of people there drive their own models. Is this what government has vision for Malaysia? Drive own models. Problem is over there, people willingly choose to drive national car, over here, more like forced decision. The perdana seriously needs an upgrade. It really feels outdated, V6 or not. The interior was the same since it was launched in 1995. Facelifts could not hide that fact.
How about proton making a size XL version of the Saga and making that the new Perdana.
Khazanah worried, cause rakyat’s money is in that thing. Problem is, they got here in the first place.
On Syed Zainal, I really think he should get an extension. Give him 10 years la. You cannot expect someone to come in and change in 2 years. Will not happen. I can see improvements, though its still small.
Proton are desparately need a foreign partner to strengthen its product line… either via platform sharing or a rebadge also will benefit both parties…
If Proton are not protected(Tax & Excise Duty) by our G oneday, will you buy a Rm40K Persona or a Rm50K Vios ? or a Rm45 Latio ?
Proton also need to revamp its supply chain(material)… With a foreign partner Proton should able to access to better quality part with lower price!
Today almost >90% are sourced locally…
I still can remember i read newspaper mentioned Gen.2 was certified with TUV on its parts and components… guess what kind of TUV is that and which area of its parts are compliance with TUV standards… (http://www.proton.com/about_proton/press/full_details.php?intArticleID=75)
there a some many standard out there, ISO, TUV, TS, 6 Sigma and etc… Does every organization who certified from anyone of these really produce quality product ?
Creating PROTON is a BIG MISTAKE. What have Proton done good to the rakyat? Forcing us to buy a sub-standard car with ridiculous price, using our money to rejuvanate Proton. Feeding those greedy BN cronies. Proton will be an abondon child soon and moving no where unless they get an reputable alliance sooner better than later. GOOD LUCK.
All these is starting to start to sound like one over-run soap opera. The-powers-that-be behind the current khazanah wants to eliminate Mr So-and-So’s political influence and discredit some people, soon bashing started and the proton customer suffers. You thought it ended with Tengku M, but noooo…
I’m starting to think these current “invisible” jokers controlling khazanah are only interested in selling GLCs for a quick buck while the current administration is in power. They don’t care for the state or future of proton. It’s easy to sell what things that “you” don’t invest in but landed on “your” lap.
It’s now a choice whether to make a greater ROI for proton’s future or grudgingly kill proton to ensure our efforts ARE vain, like how we wasted millions on the crooked bridge “compensation deal”.
Whether you’re BN or PR; or just one of those within BNs who have been secretly working for certain individuals in PR for these past few years, think of the PEOPLE lah, instead of just your political careers. Political parties are just hats for you people, but we have lives to lead.
This is just an intention. Word without action equal to empty tin. Do you think the G will allow this? We already lose VW investment in Malaysia. Malaysia boleh.
I think this Azman guy should zip his mouth. He had enough talk cock in World Economic forum.. Let Syed Zainal does his job, and I think he is on the right track..
I do not agree to saying that making up Proton is a waste.
Proton is a car that I can tell others if I want to describe Malaysia.
Proton is not perfect, but others are not different too.PERIOD.
Khanazah should give DSZ more time to proof what he is capable of.
Persona good, Saga good, then MPV should be good.
These are very good to be left unwritten in the DSZ’s resume, aren’t they?
Partnership or Ownership, if it is desperately needed, should be analyzed thoroughly.
Some might say why today, not yesterday?
My opinion is, it is better to make deal when u seem to be on winning side.
Why is that so?
Because u can demand more in the deal.
Persona, Saga & MPV prove what Proton capable of.
Jangan menangguk di air keruh.
kalau nasib baik, dapat ikan; ble buat gulai.
kalau nasib xbaik, kena patuk ular; masuk hospital.
all bull…
NeedGoodCar said,
June 15, 2008 @ 4:45 pm
It is very clear that Proton does not need anyone else as it can compete on its own be locally or globally, proton has produced cars that sell well and it has proven its capability all these 20+ years. It is the foreign car makers who need proton and not the other way round.
To get a foreign partner?What an absurp idea?
Didnt we all see that proton is capable in producing wonderful cars that can compete with Toyota, GM, VW, etc. Didn’t we see that proton capture a big market share in Malaysia and we should believe it can do the same in the global market.
We have seen many great car makers gone bust during the last many many years but proton still stand firm on its feet and very much in the kicking now.
Ha ha ha….
————————————————————–
Dude did you pick that out of the previous PM’s budget speech? Seems like desperate measures to keep Proton significant.
My stand is as before. Proton needs to go. Its a sad drain of resources. Dun give me excuses like national pride or identity. There are lots of ways to define Malaysia and it irks me that ppl of a nation choose to be represented by metal and plastic contraptions cobbled together. England was once an automotive powerhouse but reality bit and today ALL makes from the British Leyland days have been sold off. U said yourself even big car makers are struggling and in the capitalist environment, even if ur big u my not survive. I think its PATHETIC that Proton should go begging for ‘technical partnership’ or whatever crap.
Imagine this you want somebody to help you, in the process theyre supposed to be concerned with a quadrillion laws and policies designed to ensure ‘competitiveness’ and finally evryone lives happily ever after.
Die Proton Die!
for those who claim proton doing good in malaysia competing against honda and toyota…it cos we have no choice, i wonder if we all stop buying cars for a year and see what happened. We as consumer wants our rights back. Not being force to buy expensive cars by no choice. We have a choice of dont buy cars for a year or 2, and see who die first. Now we have a choice.
the funny thing is some malaysian are sooo desparate to drive new cars, until they don’t mind paying and buying proton cars.
It’s these losers that should be blamed. Short sighted.
This is a hint for a new so called MOU or another round of technical partnership alliance with another company. Then we will see another soap opera of Malaysia doing business…so pathetic.
aisey,
don’t blame on people who bought proton.
they have only enuff money for proton.
maybe u r lucky for having money not to buy proton.
but not everyone is as lucky as u r.
the key point in this topic is the fluctuating Khazanah’s (read G) decision,
not on people who bought proton’s cars.
fluctuating decision (partner / no partner) will give headache to top management.
also, the workers will start to “calculate” their future due to changing decision.
this will add to lesser mind concentration during working.
creme de la creme, fluctuating decision is not good. period.
The money to buy Proton can buy a Toyota in thailand. I mean people under estimate how cheap a car is suppose to be. Just do a google please. Msian is generally being “brain-wash” and tolerate to the g, and most worst is we are not dare enough yet to get our simple consumer rights, even though we are being bullied by whatever nation-hood project. anyhow, save yourself. The globalisation is killing everyone if you not yet realised. (e.g How many local retails can survive in msian’s hand? where is Makro?) Whether you are prince-of-the-land or whoever will need to survive ownself. There is no more spoon feed anymore. Run forrest run!!
proton’s performance is pathetic overseas. but somehow they bombared you with good news in malaysian newspapers. that is something that is very obvious to me.
plan is stop buying proton forever and stop buying any other car makes for few years if u can. proton will never survive beyond its home market let alone partnership with other car company. with the amount of trash product that have come out recently.