Proton CEO: after CNY we may have to increase prices

Proton_Iriz_ 001

Following the signing ceremony of the appointment of Suzuki dealers as Proton Edar dealers, Datuk Abdul Harith Abdullah, CEO of Proton suggested that prices of Proton cars in Malaysia may increase after Chinese New Year. Therefore, he suggests if you’re planning on getting a Proton, better do it soon.

As for the justification of a price hike, Proton chairman Tun Dr Mahathir Mohamad explained that the depreciation of the ringgit has resulted in the national carmaker needing to pay more for imported parts or services. He cited the current exchange rate where USD$1 is now equivalent to around RM4.40 instead of RM3.00 in the past.

The higher costs involved in producing cars would therefore need to be reflected in their price tags. Tun Dr Mahathir also claimed that Proton isn’t the only automaker to bear the effects of the falling ringgit as other brands will also have to face the reality of it. For now, the automaker will do its utmost best to hold on to its current prices for as long as it can.

However, nothing is set in stone, as Proton has neither confirmed nor denied a price hike for its models. For those who are interested to purchase a Proton, would you be making your move before or after the Chinese New Year celebrations? Other brands like Audi, Lexus, Toyota and Kia have already announced price hikes earlier in the year.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • xxxxxxx on Jan 14, 2016 at 1:00 pm

    Close shop la …..

    Well-loved. Like or Dislike: Thumb up 101 Thumb down 7
    • Songlap Songlap Malaysia on Jan 14, 2016 at 1:34 pm

      It is solely because of Proton and Tun M that 30 million people in Malaysia suffer. Everybody’s biggest payment per month is their cars as we are paying overpriced cars. 30 years, Proton rogol all of us.
      You see, in the 80s or even in the early 90s, you can get a brand new Nissan 130Y or a Toyota Corolla for RM20,000. Now, the same car is RM139,000.
      In truth, the past 30 years, car prices have come down a lot globally and have NOT gone up due to inflation. It has come down due to economies of scale achieved by car companies. This is proven by the fact that you can get a brand new purely Japan made top spec 10 airbag Toyota Camry 2.5 in the US for US$22,000. That is about RM60,000. The normal B segment car like the Almera is sold in the US for US$9,999. (RM30,000). Mind you, this is after Toyota and Nissan of the US has made their margin and profits and the US government has collected taxes and duties from Nissan and Toyota. The direct from factory prices is far cheaper. UMW will get the above 2.5 Camry for US$15,000 from their principal in Japan. As our Camry is CKD, the price is even lower than that.
      Our cars compared to global cars are completely stripped down. Even basic car in the US got about 20 safety features that the same car in Malaysia does not have. Purposely taken out to cut cost even further and untung more profit.
      So, in actual fact, most Malaysians can enjoy cheap and reasonable cars but because of Proton, all the other car prices have been raised up tremendously to protect Proton. Malaysians have already suffered so much. For 30 years, 30 million people suffer so much. We struggle paying for our high car prices all because of one man’s dream of benefiting his friends and relatives and forcing the dying Proton to live with billions of our LHDN money, money which could be used to build more schools and hospitals.
      If we did not have Proton sucking money from LHDN, each state can have an addition 10 fully fledged government hospitals and 10 fully fledged government schools every 10 years being built. But all our LHDN money go to the failing Proton. Every year government gives hundreds of million to Proton as form of grants. Every other year, Proton ask RM billions in help. Recently, even under private hands also (DRB) Proton asked the government to give them free few RM billions from LHDN.
      Proton also cost us hundreds of billions in ringgit in investments from car companies who moved to Thailand and Indonesia. Car companies got fed up with Malaysia’s MITI for protecting Proton and telling other companies what to price their cars. They got sick and tired of the AP system and how genuine brands cannot get enough APs to import their cars in (like Mercedes, BMW and Honda).
      They thought that if they set up their brands and plants in Malaysia, they knew they had to give 30% of their hard earned company free away as well as being told by MITI what to price their cars. They all moved their operations to Thailand making it the AutoCity of the world.
      Recently GM announced that they rolled out already 1 million cars from Thailand. Imagine if GM was in Malaysia and we taxed GM RM10,000 per car. Calculate that with 1 million cars. Just from GM alone, we lost Billions in USD. Imagine what will the amount be from other car companies if they had set up in Malaysia?
      Because of Proton, we lost hundreds of billion of ringgit in investment and trillions of ringgit from jobs lost. If Malaysia was the autocity of Asia, hundreds of thousands of jobs would have been created for Malaysians. We lost all that. Trillions of Ringgit and hundreds of thousands of jobs. Now, Thailand is benefiting from this trillions lost.
      Car companies are flocking to invest hundreds of billions in Thailand despite Thailand being an unstable government, unstable economy and full of bomb blastings and terror.
      Yet, global car companies still prefer Thailand. This is another rape like when Mitsubishi raped us for 20 years with low quality engines and parts. If Proton was not in Malaysia in the first place, you will have a few hundred thousand ringgit extra in your pocket!

      Like or Dislike: Thumb up 37 Thumb down 24
      • Same L0rrrr on Jan 17, 2016 at 11:02 pm

        Sozai proton fans still dream that the proton is 100% local R&D and syok sendiri. I just can’t stop laughing.

        Like or Dislike: Thumb up 0 Thumb down 0
    • Bungkus on Jan 14, 2016 at 3:24 pm

      Jual saja kepada company China kaya raya BYD atau Great Wall Motor.

      Like or Dislike: Thumb up 13 Thumb down 4
  • Excuse me Proton? Aren’t you a local brand with all local assembly? The depreciation of RM doesn’t affect your business. Oh wait, its a Proton that is owned by cronnies. That’s why.

    Well-loved. Like or Dislike: Thumb up 78 Thumb down 5
    • kenot on Jan 14, 2016 at 1:15 pm

      not all the parts come from malaysia. then raw material also imported.

      Like or Dislike: Thumb up 20 Thumb down 24
      • Songlap Songlap Malaysia on Jan 14, 2016 at 1:47 pm

        Why is car prices getting higher and higher? Very simple. It is because of Songlapping. Malaysia is actually a very rich country IF there is no songlapping.

        Malaysia is far richer than Singapore because we got oil, gas, tin, rubber, gold, bauxite, iron, kelapa, kurpum, copper etc. Singapore has ZERO. Why is Singapore richer than Malaysia? Again, very simple, it is because of Songlapping.

        One man can songlap RM2.6 billion is just one news we know. What about the other times he songlap that we don’t know about? I think it runs to hundreds of billions.

        Taib songlap US$20 billion (RM84 billion) also nothing happen to him. Infact he was rewarded for his songlap and made Governor and given a Tunship. In Malaysia, you are rewarded for songlapping.

        What about the songlaps by the other Menteri and Government officials?

        It all runs to hundreds of billions per annum the Songlap.

        This is why we get higher car prices every year. Our guardians are more interested in Songlapping than fighting for the rakyat to get lower car prices.

        Like or Dislike: Thumb up 27 Thumb down 4
      • alldisc on Jan 14, 2016 at 7:54 pm

        If Proton is really clever they will make cars using locally sourced parts a priority. If cannot, then don’t. Go to basics like single din stereo, 4 speed auto which is simple and reliable instead of cvt that requires ecu/tcu flashing every time and all the time.

        Like or Dislike: Thumb up 4 Thumb down 1
    • For your information, all the machinery are all imported. There are no local content when it comes to local parts. Even parts require to be outsource overseas.

      Furthermore, not all components / parts are manufactured by proton. For instance, the ECU are imported by Siemens, etc. All the running costs of the machines and materials are all affected due to the weakened ringgit.

      Please get your facts right before bashing anyone, as this is not good for business. Orang lain pun nak cari duit makan, not just cronies.

      Like or Dislike: Thumb up 19 Thumb down 36
      • Every1canTalk on Jan 14, 2016 at 4:13 pm

        Proton claimed 94% of the car’s parts were locally sourced in an effort to reduce capital outflow, so let wait and see how these 6% parts from overseas will cost on potong cars. lol

        Like or Dislike: Thumb up 31 Thumb down 1
      • George Abdul on Jan 14, 2016 at 4:36 pm

        Your unlogical comment, so where’s the Billions of R&D that collected since Proton started??? I mean billions of billions !!!

        Like or Dislike: Thumb up 23 Thumb down 1
    • How Can Hyundai Succeed?? on Jan 14, 2016 at 1:37 pm

      Proton is just not a focussed company. Proton and Hyundai started about the same time. Hyundai maybe started about 8 years earlier. just see where both companies are.

      Hyundai is a global player. They sell about 7 million cars per year globally. They are No 4 in world rankings for car sales. Toyota is No 1.

      Proton, which stated about the same time, with MITI 100% protecting them and forcing 30 million rakyat to buy their cars, all Government departments strictly told to buy only Proton every year, PDRM also strictly told to buy Proton every year, Bomba, Telekom Malaysia and all GLC also told to buy Proton every year and yet, it can go into financial difficulty and about to be bankrupt.

      Every year also Spanco buys berpuluh puluh ribu Protons to lease to the government. The other Government departments also told strictly to buy Proton. Bomba. TUDM, Tentera, JKR, Putrajaya, all the Kementerians etc. Yet Proton can lose money!!!

      How can Hyundai and Proton be so different. Both started about the same time. But Korean Government never force GLC and Government department to buy Korean cars and yet, they can do so well Globally.

      Something is wrong with Proton. It needs to be shut down. Proton has the same problem. Given so much of help and BOTH also now sucking the Government big time.

      Like or Dislike: Thumb up 19 Thumb down 3
  • Better start digging your own grave first!

    Like or Dislike: Thumb up 11 Thumb down 2
    • Change Vendors First!!! on Jan 14, 2016 at 1:40 pm

      You see Proton is actually a good concept. But when Mahathir created Proton, he made sure every single part of the Proton car is supplied by his crony buddies.

      And these crony buddies overcharge Proton by ten times whilst giving poor and inferior parts. That is why your Proton always falls apart and everybody blames quality control. That is the reason also why Proton makes only RM500 per car that they sell. It is solely because of the crony vendors who are overcharging Proton. For example, per car Mat is sold to Proton for RM100 whilst you can buy the same car mat from brothers for RM10.

      So, Mahathir can say all he wants about quality being raised and his sarcasm about Gomen not supporting it, but until ALL Proton’s vendors are changed, how can the quality go up?

      Mahathir won’t do this. All his buddies have got the contract to be vendors to Proton. Mahathir will just ensure that all the vendors for Proton remain the same. All his buddies and relatives, so why upset his relatives when he can continue his past misgivings?

      Proton will still get the same low inferior quality parts it has been getting for the past 30 years and it will still be overcharged by 10 times for each part the vendors supply.

      Malaysians have already suffered so much. For 30 years, 30 million people suffer so much. We struggle paying for our high car prices all because of one man’s dream of benefitting his buddies and friends. Until Proton changes ALL their vendors, Proton will be a loss making organisation because it produces super low quality cars due to its vendors supplying Proton Super low Quality parts.

      Now, increase prices and burden the consumer because of cronyism.

      Like or Dislike: Thumb up 10 Thumb down 3
  • delon shin on Jan 14, 2016 at 1:10 pm

    BN kata harga kereta turun secara berperingkat, huhuhu!!!

    thanks to those monkeys who voted for them.

    Well-loved. Like or Dislike: Thumb up 54 Thumb down 2
  • jim labu on Jan 14, 2016 at 1:11 pm

    O.k…how about this, you jack-up whatever price you want & we all still ignore you…deal?

    Like or Dislike: Thumb up 34 Thumb down 3
  • Pak Yobe on Jan 14, 2016 at 1:14 pm

    NOPE! I wont buy any Proton’s anymore..
    I dont care whether they want to increase or even reduce the price,, enuff is enuff..

    Pak Yobe is tired with all of these Sandiwaras…

    Like or Dislike: Thumb up 30 Thumb down 2
  • Ah Pek please increase more, each model by at least 10k so you can close your potong faster and end the misery and suffering of us paying high foreign car prices. Your presence is like a disease.

    Like or Dislike: Thumb up 25 Thumb down 2
  • shawal on Jan 14, 2016 at 1:19 pm

    lets all just wait for the new number plates to come + year end rebates before making any decisions to buy

    Like or Dislike: Thumb up 2 Thumb down 0
  • Bet the Raya / Merdeka rebates will be up to RM10k

    Like or Dislike: Thumb up 1 Thumb down 0
  • Henry on Jan 14, 2016 at 1:32 pm

    With the Ringgit at an all time low how not to increase prices?

    Like or Dislike: Thumb up 2 Thumb down 0
    • John Cena on Jan 14, 2016 at 2:12 pm

      becoz they could sell the same car cheaper abroad plus the tax and shipping.

      Like or Dislike: Thumb up 1 Thumb down 0
  • Stop using the word ‘may’ every time these car manufacturers announced they may increase the price, eventually they will increase at the end. Please la just change your ‘may’ to ‘will’. Else just stfu.

    Like or Dislike: Thumb up 6 Thumb down 2
  • choong hui ken on Jan 14, 2016 at 1:42 pm

    malu la woi.. kreta proton kreta nasional.. buat apa naikkan $$.. x kesien kat rakyat ke.. tapi sudah sekien lame rakyat x pakai kreta potong lagi dah.. semua tukar japanese kreta.. hapak nak kasi untung klu bukan utk kesejahteraan rakyat tapi masuk kantung org besar.. kasi mampuii la..

    Like or Dislike: Thumb up 9 Thumb down 2
  • Want to increase, increase la.
    This is why people don’t believe Proton on whatever they say. Last year said want to increase after new year, until now still not increase.

    Like or Dislike: Thumb up 4 Thumb down 2
  • Anonymous on Jan 14, 2016 at 1:49 pm

    Yeah… sure… why not… P1 can increase the price if they want to…

    So does P1 think that will make it’s sales dwindle slower or faster…?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Dolly on Jan 14, 2016 at 1:54 pm

    “Depreciation of ringgit resulted in national car increase price…”
    Now that’s so funny…. hahaha…

    Guys, I tell you, better let them keep the stocks in their factory car yard under the sun for a while… it will then be cheaper when they do the stock clearance promo.

    Like or Dislike: Thumb up 5 Thumb down 1
  • wiwiwiwiw on Jan 14, 2016 at 1:56 pm

    Good!
    Less sales.
    Less new Protons on the road.

    Like or Dislike: Thumb up 9 Thumb down 2
  • John Cena on Jan 14, 2016 at 2:05 pm

    it’s too late, even if you put all safety features in you car, people perception to the brand already low. I have experience with gen2 too high maintenance, high fuel consumption, low resale value, low quality. so I won’t spen my hard earn money for 9 years loan. I also recommen my family and friends not to buy proton. I’m sure most of proton user feel the same.

    Like or Dislike: Thumb up 8 Thumb down 2
  • tokmoh. on Jan 14, 2016 at 2:21 pm

    When RM ok : we have highest localisation, we bangga la

    When RM toilet paper : ‘terpaksa’ naik harga, we import materials also mar

    Like or Dislike: Thumb up 5 Thumb down 0
  • Pening on Jan 14, 2016 at 2:32 pm

    Nak kata proton ni bagus sgt pon xjugak… tpi klu proton xde kita xde kerete nasional… malaysia apa pon xboleh… skrg bangla yg dduk malaysia lagi hbt dri org malaysia… dpt awek cun… gaji besar… diorg bukak bisnes tekan org malaysia… klu xde org cina mmg foreigner la menang… tukar la kerajaan… itu je solution yg abg pening nampak

    Like or Dislike: Thumb up 7 Thumb down 1
  • kendrix lamazz on Jan 14, 2016 at 2:37 pm

    Sad to hear Proton raising prices, but then again Perodua already raised prices….

    On the logical side, it’s raw material prices that’s affected by the falling ringgit… what to do

    Whatever it is , I hope Proton will reconsider the price hike….

    Like or Dislike: Thumb up 3 Thumb down 0
  • joule on Jan 14, 2016 at 2:45 pm

    Can I buy a car before election, maybe all the BN promise fulfilled during that time including decreasing car price. we will see!

    Like or Dislike: Thumb up 1 Thumb down 1
  • Ah Lan on Jan 14, 2016 at 2:52 pm

    Bungkus terus..naik harga!! Ada orang cakap ada GST sepatutnya harga turun??? Sorry saya punya Cgpa hanya 2.6. shj….

    Like or Dislike: Thumb up 7 Thumb down 1
  • batumudo on Jan 14, 2016 at 3:01 pm

    30% price redunction my a**. BN pay peanut(BRIM), we get monkey (NAJIB)

    Like or Dislike: Thumb up 5 Thumb down 1
  • protoncloseshopla on Jan 14, 2016 at 3:11 pm

    said to be helping malaysian by producing cheap affordable cars, mlm diu lei lou mou ham ka can. better close shop early than producing low quality milo tin cars yet with fxxking expensive cost and cheat all the hard earn money from rakyat. it’s a good sign that u are increasing ur price so that u will make malaysian realise how fxxking stupid P1 is and close shop earlier, this the only good deed u will be doing in 2016. rubbish company P1

    Like or Dislike: Thumb up 6 Thumb down 2
  • imagine if this is a gimmick. after CNY they say they will retain price in consideration of the rakyat. and all those monkeys who vote for BN will be happy and vote for them again. and the cycle repeat until all of us die. fxxk off.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Oh My! on Jan 14, 2016 at 4:14 pm

    Aiyah! When USD vs 3.20 that time you no turun harga……now at 4.40 u wanna tambah. Don’t lah!

    Be like Rashid…..see no touch!

    Like or Dislike: Thumb up 2 Thumb down 1
  • JB_KIA on Jan 14, 2016 at 5:27 pm

    go ahead n increase, there’s no need to inform…

    Like or Dislike: Thumb up 1 Thumb down 1
  • Jobless on Jan 14, 2016 at 6:16 pm

    Hahaha…reduce price oso nobody care la…i dunt want to balik kampung during CNY and be seen in a brand new Proton, ashamed to face other brother in law who driving Vios City…speak oso using low voice no power

    Like or Dislike: Thumb up 7 Thumb down 1
  • ketutkentut on Jan 14, 2016 at 9:34 pm

    Increase price??? Sorry, proton.
    If you give me a free proton, I pun tak nak…. TAKNAK!

    Like or Dislike: Thumb up 2 Thumb down 1
    • Rezeki Jangan Ditolak on Jan 16, 2016 at 9:14 am

      Kalau i i amek lah. Jual balik boleh dapat duit top up beli honda.

      Like or Dislike: Thumb up 1 Thumb down 2
  • Local Contents on Jan 15, 2016 at 8:18 am

    Ehhh…. I remember TunM said Proton local contents is up to 90%… how come depreciating MYR will affect Proton input cost?? Can Proton clarify?

    Like or Dislike: Thumb up 1 Thumb down 0
 

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