The Malaysian Association of Malay Vehicle Importers and Traders (PEKEMA) recently held a press conference addressing two issues. The first is a plea for a longer period of transition for current Proton dealers to upgrade to 3S or 4S centres, and the other is to get the government to provide soft loans from the Bumiputera Automotive Fund it has been collecting from PEKEMA members (up to RM10,000 per AP) to facilitate the upgrading works.
According to PEKEMA president Datuk Zainuddin Abdul Rahman, Proton dealerships that are operated by PEKEMA members want the transitional period to be stretched to December 2020. Previously, Proton is only giving its dealers a one-year period to upgrade to 3S centres in order to be given an opportunity to sell the company’s first ever SUV, based on the Geely Boyue (set to be introduced in the fourth quarter this year).
The association claims that the one-year period is too short (the dealership upgrades must be completed by October), and there was no prior briefing given by Proton to its dealers. Several PEKEMA members, which are also Proton’s dealers, also chimed in on the matter.
However, Proton revealed on February 12 that the original term for the 1S centres to upgrade to 3S/4S facilities is in fact up to 2020. It stressed that only those who are (financially) able to upgrade by October 2018 should do so and will be given priority to sell the new SUV.
Proton said it won’t be a problem if 1S dealers are unable to upgrade, except that these facilities will be deemed unfit to sell its new SUV, which will be positioned as a premium flagship model. The reason is because Proton aims to provide a holistic customer experience (part of Proton’s turnaround plan), from purchasing to after-sales, and that 1S centres only function as sales outlets and nothing more.
That said, given the sales priority to Proton’s 3S and 4S outlets, several 1S centres will still be allowed to sell the SUV through 3S and 4S outlets that are within the vicinity. This ensures that all dealers will have the opportunity to sell new Proton models – as long as all requirements are met.
As for the automotive fund, Zainuddin said the government has collected over RM3 billion from contributions made by every AP holder and PEKEMA member. “According to the terms of the fund, 20% would be used to assist the Malaysia Automotive Institute to build capacity, 40% for PEKEMA members to expand their businesses and the remaining 40% is to assist Bumiputeras involved in the motor vehicle industry,” he told reporters at the Wisma Yayasan PEKEMA yesterday.
“Therefore, PEKEMA proposes that 40% of the RM3 billion, which is RM1.2 billion, to be disbursed to Proton dealers as soft loans at interest rates of not more than four percent. We ask the government to consider letting us use the funds so we can upgrade the dealerships,” Zainuddin added.
Proton dealers and distributors are expected to meet with the Ministry of International Trade and Industry (MITI) today to discuss matters surrounding this issue. Meanwhile, Zainuddin said PEKEMA will also meet with Proton’s chairman, Datuk Seri Syed Faisal Albar, next week.
At this rate, you must be wondering, just how many PEKEMA members actually operate Proton dealerships? Well, according to Zainuddin, there are 25 Proton dealerships run by PEKEMA members, 11 (or 44%) of which are still the basic 1S centre. Proton has roughly 400 dealers nationwide, and 70% (or 280) of them are 1S centres.
Concerning Geely, Zainuddin said PEKEMA is not against the company. “It is not because we (PEKEMA) do not support Geely. It has a good track record, such as growing Volvo until it reaches £1 billion (RM5.3 billion) profit, and PEKEMA believes Proton will be like Volvo in the future. Nevertheless, Geely needs to explain to Proton dealers its aspirations. We hope Geely will not be too forceful or issue top-down instructions to dealers,” he said.
Tell us, if you were to be in Proton’s shoes, what would you do?
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Extending transition period is reasonable but providing loan is not. Better they seek own funding by taking a bank loan.
Govt hv to bailout us out so dealers wont sink.
https://paultan.org/2018/02/05/proton-will-not-be-allowed-to-sink-najib-tun-razak/
Dont telle all these years they still need assistance. What kind of business are they running. If they still need assistance then they do not deserve it for they have proven only one thing….they do not know how to make money. By whining and complaining they have given us bumi businessman a bad name. Now everybody will say that we are incapable without government behind us.
Geely / Gov don’t need to bow to these demands. Either they lean out the operations to stay relevant or just cease to exists. They should refinance their bungalows, send children to local schools, stop foreign vacations and luxury lifestyles if they need to. 15 years ago my dad bought a Wira from a dealer. I still remember how they treat the customers back then. This company failed to preventive measures and wanted to be in comfort zone
That’s the game Geely’s playing at. Suruh bungkus Kedai, they will moan and complain. They have to play the hard game if they wanna keep up. Sink or Swim, brah!
Even upgrade to 4s, still manage by kampung mindset people. Geely will dumb you at the end
New Economic Policy (NEP) is flawed from the start. Having preferences, is living in denial.
hahaha … them Proton. Banyak betul pattern.
Ini dipanggil innovasi
In order to encourage more local innovation & participation, longer period must be provided for Proton dealers to upgrade to 4S, and most importantly, dealers should receive outright government grants for upgrade.
Very pity so old still asking money from parents. Tak malu ka?
Similar like kampung fishermen, padi farmers, rubber planters given full assistance & subsidies… so do P1 dealers. Be kind ppl, what is past is past
Had to disagree with u comparing those poor people working hard and sweat blood to get money with the p1 dealers thats making a lot of money and not trying to improve their business
Those listed are actual hard workers that doesnt rely on bailouts, unlike these cronies that cannot compete and play the racial card to compensate their own shortfall.
I can easily build a 1s center using website…LOL…cheaper price some more without even hiring any staff..
If you can’t cope, just sell bicycle la. It is more popular now and only need 1S.
Now we know why proton can’t t compete locally and globally. Unable to adapt changes will make you left behind.
if other dealers can.. why cant they do it also?
The whole rakyat of Malaysia has been cheated by Proton for 30 years, so how to refund?
it is “Survival of the Fittest”.. does how it works in every industry..
The temporary knee jerk for the betterment of Proton, the industry and the country in the long run..
Kalau nk beniaga, buat mcm org nk meniaga
Hahahahhahhah… speechless kan
Time to liberalise local auto sector
https://paultan.org/2005/08/09/bumi-trader-reveals-loophole-in-ap-system/
These PEKEMA members have long enjoyed protection and benefits from previous Proton managements. Its time for tgem to stand on their own feet. Its good that Geely is considering eliminating the PAR (Payment After Registration) facility to the dealers. Leave the selling to the experts and are interested in doing business. Not just getting the Proton dealership and expect to be spoon fed and protection by the Government and Proton management. That is why Proton failed in the past, awarding the dealership to the people who do know nuts about the automotive industry. If you don’t have the financial capabilities and know how, please surrender your dealership and let Geely concentrate on building the Proton brand.
Haha..Damn proton…look confident to sell boyue geely brand..now force the dealer to upgrade their premises.
BTW, how about proton service dealer? Do you terminate them as service dealer? But in my area, a lot of owner prefer to send their car at proton service dealer instead of 3S.
The service dealer is much more experience to solve proton problem..Only go to 3S for warranty claim or want to service the car in hurry and comfort.
No Money no talk, as simple as is.
So time to close down Proton? How many times the rakyat said it already but P1 never listens?
Why don’t they want to meet the CEO? The chairman can’t do much.
True that. DRB chairman can actually help.
I’ve done a short stint at a proton service centre .
Out of all the issues , one stands out the most . The people in charge themselves do not believe in the product . The are painfully aware that people acquire the cars for the affordability . And even before attempting to solve an issue or diagnose the car , they have predisposed assumption -fair one at that – that the cars itself is subpar and meant to have the issue.
If all the workforce operates with above mentioned mindset at , the product does not get worthy attention when it comes to repairs and services, not because of the facility , it because the workforce literally does not believe that the cars deserve much attention .
Simply put – pakai Proton , what do you expect lah .
Proton deserves the low satisfaction rating from JD Power. Customers don’t lie!
In 1998 when proton started to use Patco aircond compressors instead of Sanden, I complaint about the noisy compressor in the iswara aeroback. They did check, but later came back and said.. Normal bang. Patco punya bising sikit.
Extension allowed but not too long..say one year from now is adequate..and NO NO NO to soft loan
Always demanding dedak ! How many years you have been earning buta profit. Where’s the money ? Could you just compete like other humans instead of begging for crutches your Mamak taught you all stand up with ?
Sori bro.. my pipu mudah lupa…
Proton said it won’t be a problem if 1S dealers are unable to upgrade, except that these facilities will be deemed unfit to sell its new SUV, which will be positioned as a premium flagship model. The reason is because Proton aims to provide a holistic customer experience (part of Proton’s turnaround plan), from purchasing to after-sales, and that 1S centres only function as sales outlets and nothing more. ( not really forced to upgrade to 3s or 4s
use yr own money, everything about $ ask gov
If I were in proton shoes, I will definitely pack up & go. Private business should not involve political means to suppress business management to helps those who are incapable. What’s the point of privatisation? Tax payers money are not use to support those unable to function.
Pekema with so much money can buy over Geely’s share in Proton. Rgt 1.2 billion to bailout 25 dealers, that is Rgt 48 million per dealer? Another cowgate?
What the fuss..PEKEMA only represent 25 dealers out of 400 proton’s dealers..out of that only 11 are still 1S centre..not even 3% and the only issue is that they’re unable to sell the new SUV..
If they want to survive, they dont need loan from government.Just forget about ego and pride, work together and consolidate resources. Example : All 1S in Cheras can close down and pool together their money to set up lesser 4S centres. Dont have to be individual bosses for small 1S centres. Just be a shareholder of a larger company. If you dont like this, then wait to bungkus forever. If you bumi want success, try to look at how the late Nasim built his Naza empire. Its true that Tun M helped him in the past, but today they dont ask government for money anymore .
Syiok eh. Company private tapi modal dan loan wang rakyat. Mana lagi dunia ada…. Malaysia saja ada.