Proton confident of return to profit by end of FY08
It’s been a while since we’ve read of any real concrete news on the Proton-Volkswagen deal, but Proton has not been sitting on their asses waiting for something to happen. From what I’ve been told, new product development continues as usual, and there has been some significant milestones happening in the past few weeks with Proton that we can be proud of.
For one, the recent Chinese Europestar GEN2 rebadge deal is set to bring in billions of ringgit in revenue for Proton, with RM937 million in revenue and RM102 million in royalties set to be generated in the next 20 months with the 30,000 GEN2 CBU units.
The sweetest part of the Chinese deal would be the licensing deal to supply the Campro engine platform in CKD form to Youngman Automobile Group for local assembly in China. The deal is expected to rack up 150,000 units over the next 6 years, and considering royalty payments for parts localisation in China as well as importing parts straight from Malaysia - the deal is expected to be worth a few billion ringgit.
This means better economies of scale for both Proton and it’s vendors, something that Proton and basically any car manufacturer really really needs.
Money is also generated through Lotus Engineering, which will be providing design and engineering consultancy to Youngman for their other new Europestar cars that will be based on the GEN2 platform and Campro engine. This is expected to come up to RM195 million.
Proton managing director Datuk Syed Zainal Abidin says this is much like what Mitsubishi did for Proton when Proton first started out. Now Proton is playing the role of Mitsubishi to Youngman’s Europestar.
Efforts are also in place to expand Proton’s Indonesian dealer network. Proton expects to have 10 dealers in the country by the end of the 2008 financial year and sell 4,700 cars in Indonesia by the end of the 2008 financial year. Proton has also had an order for 5,000 Proton Waja taxis in Iran - something that would likely throw American company GM out of the question when it comes to a partner.
With this new Europestar deal, more export deals in progress, as well as the impending upcoming Proton New Sedan due to be launched on the 15th of August 2007, Proton believes the worst is now over, and is expected to return to profit by the end of the current financial year - March 21st 2008.
July 31, 2007 @ 8:04 am
Bravo proton…..
July 31, 2007 @ 8:26 am
This is good news, hopefully Malaysia will be fully AFTA compliant after this
July 31, 2007 @ 8:41 am
Selamat maju Proton.
July 31, 2007 @ 9:14 am
jangan masa kurus, mula kerja kuat cari makanan..
nanti bila dah banyak lemak di badan, lupa untuk bersenam/jaga kesihatan badan..
[hope proton jangan besar kepala dan lupa pada rakyat malaysia klw sudah jadi terkenal satu masa nanti..]
kita tak mau jadi mcm ini macam
masa susah, customer bayar mahal utk beli kereta proton walaupun quality tak seberapa [takpalah, lagipun proton baru nak naik nama, mungkin perlu duit lebih utk modal]
nanti masa senang, jangan pula customer tetap kena bayar mahal sebab “wah, bukan kah kita sudah terkenal?”, mahal kerana brand, bukan mahal kerana berpatutan..
July 31, 2007 @ 9:17 am
Too early to comment since its all “paper” plans. What if the sales is poor over in overseas…what if the Sedan fail to deliver as expected. Too early to praise…get the figure , then the result, then praised. Meantime…just hope for the best.
July 31, 2007 @ 9:40 am
All the best to Proton.
July 31, 2007 @ 9:52 am
is this for real?
July 31, 2007 @ 10:25 am
(RM937million + RM102million) / 30000gen2 = RM34633.33
tat means proton is selling CBU gen2 to youngman at RM34333.33 each?tat’s about 10k-20k cheaper…i tot CBU should be more expensive…as it requires shippings…who pays for the shippings?does it include in the amount above?
July 31, 2007 @ 10:33 am
Lets wait for end of the current financial year before congratulating them.
July 31, 2007 @ 10:59 am
I think someone in Proton read this previous blog?? http://paultan.org/archives/2007/04/02/pm-to-meet-volkswagen-team/
azrai said,
April 3, 2007 @ 12:34 pm
I think about a partnership with China company. Proton has the know how and + we have Lotus. China can be the hub for left hand drive Proton. Shah Alam HQ can be the R&D centre for Proton. Tg. Malim plant can be the hub for right hand drive Proton. What we need most is the scale of economic. We fail in this factor. We just cannot simply catch to come out with new model every year because the low turnover. Imagine if we had partner in China just to produce our cars and some parts we can lower the price extremely and improve the quality in design. We still can be laoban instead of the workers in case we partnered with VW. Think about it.
July 31, 2007 @ 2:10 pm
hopefully proton do the right things. dont make us dissapointed anymore.
July 31, 2007 @ 2:12 pm
everything sounds so good and sweet..anyway wish proton the best!!!
July 31, 2007 @ 2:23 pm
let just c if they learn from their mistakes……..
July 31, 2007 @ 2:28 pm
Anyway…
PROTON CODENAMED BLM
IS GOING TO BE
LAUNCH JANUARY
NEXT YEAR.
July 31, 2007 @ 5:14 pm
infinity said,
(RM937million + RM102million) / 30000gen2 = RM34633.33
tat means proton is selling CBU gen2 to youngman at RM34333.33 each?tat’s about 10k-20k cheaper…i tot CBU should be more expensive…as it requires shippings…who pays for the shippings?does it include in the amount above?
————————————————————-
Have u forgotten that 40-50k is not the entire price proton sells the Gen.2 to us. There is still the matter of tax. So after everything don’t be surprised that the Chinese still buy the car for 40 odd thousand.
July 31, 2007 @ 5:25 pm
#
kei9 said,
July 31, 2007 @ 2:28 pm
Anyway…
PROTON CODENAMED BLM
IS GOING TO BE
LAUNCH JANUARY
NEXT YEAR.
——————————
are u serious?
erm..hope BLM will also built tougher..just like savvy..
July 31, 2007 @ 8:26 pm
proton , u can do it …
July 31, 2007 @ 8:51 pm
hopefully proton can become like MAS soon
July 31, 2007 @ 9:54 pm
IM DEAD SERIOUS……….THESE WORDS ARE FROM THE (FORGET WHAT THE NAME EDI) P1 TOP PPL.
July 31, 2007 @ 11:06 pm
i would expect they just sign the deal to steal proton’s design. one year later down the track they realize what a crap platform it is and sell the designs underground to even newer upstarts without knowledge of proton. and move on to sign other deals. and do more cut and paste jobs.
just because they signed on a contract with an upstart company in china (god knows how many more will come up….kind of like the dot-com bubble)…which in turn will go bust pretty soon. and expect to profit enough to become a competitor in the car market. if it were that easy then GM, ford and toyota would have done it and out-profit anyone else out of the market. for a car company to succeed, the only way is to come out with successive blockbuster vehicles (like recently mazda 3, suzuki swift) under your own brand name. which penetrate every major market in the world.
proton are just talking out of thier asses. there is a slight chance that at the end of the financial year the balance sheet will show a profit. but it is understood it is merely an accounting gimmick. the profit is only calculated at that time.
July 31, 2007 @ 11:38 pm
Hmm. I don’t know much about business. But it would be great if Proton could bring themselves into the black.
One thing I’m afraid though, China are infamous with their inferior products. I just don’t know what their quality standard is like. But if Proton is not going to be strict on their own quality standards, I’m afraid their already shaky image could suffer even more.
August 1, 2007 @ 12:19 am
puik!!! Tabiat orang malaysia….cakap tak serupa bikin!!! First they say that they will start earning money by year bla bla bla…Its because they are trying to convince and to attract the customers since Proton punye nama sudah busuk…Now they are trying to make their brand’s smells good by introducing new model, more quality car…tis n tat…bla bla bla…. At the end, if things doesn’t workout….HAHA…dun be surprice tat the G would come out with ridiculous answers and excuses.
August 1, 2007 @ 8:02 am
“Proton confident of return to profit by end of FY08″
Not to bash them, but with all the help they are getting, to be in the red in the first place is an embarassment.
30,000 cars is peanuts to the chinese market. I wonder if this is just an inventory reduction excercise.
With the new cars on the line, I wonder if Proton’s product planning team is smoking something. In such a small market, why would you spend development money to build 2 sedans about the same size class? Only thing i see that they going to retire the Waja to streamline production to get better economies of scale.
With the perdana and perdana replacement and the Gen 2 siblings, the Waja would be neither here nor there. Perhaps also to cut cost if there were licensing cost involved with the ex-charisma/S40 platform the Waja is riding on.
August 1, 2007 @ 10:30 am
the best fortune teller of all.new models havent come out sudah tahu dapat jual banyak meh? wahseh! ini proton memang nujum pak belalang. No need to cakap besar 1st proton. be humble sikit. now perodua sudah turn over bergoleng goleng with hard to sell viva. time for proton to wake up.Good luck proton..
August 1, 2007 @ 12:46 pm
motomoto.. actually.. the best fortune tellers are on paultans blog
what proton say is nothing special.. its just their business projection.. all companies do that. if you are a car company, and you launch a new product, of course you must have some reason, projections, and expectations.. if you dont.. then why launch a new car in the 1st place?
anyways.. we wil wait and see how this new car does.
August 1, 2007 @ 6:13 pm
every sen of profit that proton made is the blood that sucking from people…
since this is a social affair business, why do they need so much profit…
August 1, 2007 @ 6:58 pm
The worst will not be over if the fundamental problems are ignored and pretend not to exist. You can sell once, make money quick but can you resell and resell again ?
August 1, 2007 @ 7:07 pm
I’m wondering why every single move Proton does, still has been criticized by some people. Now Proton is trying to expand its market to bigger market also been criticized with the purpose to make profit so that government no need to help them anymore. ~SIGH~ Which is good new for us. Don’t you think? So why bashing again.
With bigger profit, means they have more capital (money) to spend in their R&D and so on to develop more new models. Since now new model(s) quite slow to come out as one of the reason (profit loss) and people complaint, and if all the plans which some have been secured the deal, hopefully can turn Proton in to black again.
Think about it again guys before you post.
August 1, 2007 @ 10:10 pm
The Unicons …….i agree with you 100%!
bashers smashers….
August 1, 2007 @ 10:11 pm
im not in amy group…juz being cool….
August 2, 2007 @ 7:23 am
Proton should come out with a model with a long lifespan. Not like the Saga Tank Car. It is more to Honda Jazz. Do you realize how many years it is still in production?
August 2, 2007 @ 3:31 pm
well its gonna be replace with the proton BLM though…….next year
August 3, 2007 @ 8:42 am
Just wish them good luck and all the best.