Archive for Proton

Minister of International Trade and Industry Tan Sri Muhyiddin Yassin says Proton’s vendor system will have to be discussed as an independent study conducted by a Japanese company revealed that parts prices in Malaysia were up to 50% higher compared to parts sourced for Japan. He found this to be very odd.

I can think of a few reasons why this is happening - cronyism and monopoly protection could be one reason, the another could be the lack of economies of scale by local component suppliers as they do not have the large orders book of Japanese component suppliers who are supplying components in much larger volumes.

I am pretty sure that the 50% higher price is not because our local components have 50% higher quality.

Source

Click to enlarge

Back in May this year Datuk Noh Omar (and his Ministry of Entrepreneur and Cooperative Development) suggested that Proton develop a new vehicle designed to be used as a taxi similiar to the London Black Cab. The whole idea is that the Malaysian taxi system switch to this new standardized model rather than having multiple models like the Proton Saga, Proton Waja, Naza Citra, Renault Espace, Proton Perdana and even premium Hyundai Sonata and Nissan Cefiro taxis. According to Datuk Noh, this will help “standardize the image of taxis” in Malaysia.

Proton will be looking into the feasibility of the request and if possible, the Ministry of Entrepreneur and Cooperative Development will help “ensure take-up”. Ideally the taxi should also have a factory-fitted NGV system rather than with current taxis which have to retrofit the NGV system as an aftermarket addition to the car. In cars with smaller boots like the Iswara, the NGV tanks can take up a significant amount of boot space depending on the size of the NGV gas tank.

Firstly, the London Black Cab is only used in London. The rest of the UK, or rather the rest of the world uses conventional 4 door sedans or minivans as taxis. Do we really need Proton’s financial records to be plagued with yet another model that has a limited market?

Consumers purchase different types of cars for different needs, so taxis should use different models for different needs as well. A large and heavier taxi with lots of boot space and passenger room powered by a larger engine to move around with that extra capacity will be going around town wasting unnecessary petrol (or NGV) if it carries only one passenger on short trips most of the time.

A much better idea would be for Proton to offer a new taxi based on the new Proton Saga (sources inside Proton say one with a factory-fitted NGV system and a possible upgrade to a 1.6 liter engine is under development) for the purpose of short trips. Longer trips that require more passenger and luggage space can be serviced by larger models converted for taxi purposes like the Kia Rondo Taxi that we saw last year. It can be supplied by Naza Kia Sdn Bhd when it updates the Citra to the next generation Rondo. Just remove the option for the 3rd row of seats and use it for luggage.

On the matter of improving the images of taxis in Malaysia, the government can support this transition to the new models mentioned above by offering financial assistance and loans to taxi drivers for them to be able to afford the upgrade to a new generation of taxis easily. And while we’re at it, cut out the middlemen and give the taxi licenses to the people actually running the taxi services!

There is really no need to waste money and time on the R&D and production of a new specialised single taxi model that will serve nothing more than an ego boost to be able to say that we have our London Black Cab equivalent. It will be the case of the Eye on Malaysia emulating the London Eye all over again.

Related Reading:
Taxicabs of the United Kingdom

Click to enlarge

Proton has launched the Proton Persona for the Indonesian market today at the 16th Indonesian International Motorshow. It is the fifth Proton model to be sold in our neighbouring country, just over a year after Proton entered the Indonesian market in March 2007 with the Savvy and the GEN2. The other two models that have been launched since are the Satria Neo (known as the Neo in Indonesia) and the Waja.

The Indonesian Proton Persona is available in five variants and all come with the 1.6 liter Campro IAFM engine. The line-up consists of an auto and manual baseline, an auto and manual mid-line and a highline automatic model. The cheapest baseline manual model is priced at 122,000,000 Indonesian rupiah, or about RM42.6k.

The Persona will be sold through PT Proton Edar Indonesia’s network of 3S centers, which are currently situation in Warung Buncit, Bandung, Makasar, Pekanbaru, Palembang and Slipi. Three more sites have been identified - Pondok Indah, Kalimalang and Kelapa Gading. This will increase to about 27 by 2012.

UPDATE: Detroit Electric press conference in Malaysia - read more about Detroit Electric and our experience driving the Detroit Electric Lotus Elise and the Detroit Electric Proton Persona.

We may see electric versions of the Proton Savvy, Proton GEN2 and even a possible Proton MPV very soon, as evident from this recent revelation. They won’t be Proton-badged though - the world will know them as Detroit Electric cars. The Detroit Electric was an electric car produced by the Anderson Electric Car Company in Detroit between 1907 to 1939. It had a top speed of 32km/h and a maximum range of about 130km, though driving it in an efficient manner scored a record of 340.1km on a single charge.

The new Detroit Electric will be a joint venture between ZAP and China’s Youngman. Ex-Lotus Engineering top man Albert Lam (shown top left) will chair the new Detroit Electric venture. Its first cars will roll off the production line in summer 2009.

Now here’s where we find out some of Detroit Electric’s cars will be based off Proton bodies. Detroit Electric cars will be brought into the European market by a Dutch consortium called Electric Cars Europe (ECE). Their website lists a couple of models like an electric version of the Lotus Elise and an electric Volkswagen Golf.

But the Detroit Electric range is also listed: a four model line-up that consists of a subcompact, a mid-sized sedan/hatchback, the Zap alias, and a full-sized SUV called the ZAP-X, which we all know is an electric-powered Lotus APX.

To the left you will find the information on the compact electric car that Detroit Electric will offer. It is quite obviously a Proton Savvy with no badge on the front.

According to the preliminary info, the Detroit Electric Proton Savvy will be launched in the 4th quarter of 2009. It will be powered by a 30kW (40hp) electric motor that’s backed by lithium-ion batteries.

Range is about 300km, and I am not sure if my translation is right but it appears that the vehicle can be charged up in between 2.5 hours to 7 hours, depending on the power supply. Estimated price is 22,491 Euros, or about RM112,188.00!

The next car is described as a mid-sized sedan/hatchback. The silhouette looks like the Proton GEN2, except it seems to have a very radically styled front end. Two door handles on the side can be seen, showing that it has at least 4 doors, or 5 if its a hatch like the GEN2.

This larger Detroit Electric Proton GEN2 probably has a larger battery so it can go further with a maximum range of 550km, and on to a top speed of 190km/h thanks to its powerful 150kW (200 horsepower) electric motor. Charging time is listed as being between 3.5 hours to 10 hours, again depending on the source of power.

The Detroit Electric mid-sized sedan possibly and likely to be based on the GEN2 is expected to be launched in the second quarter of 2010 and will retail for 29,251 Euros, or RM145,599.00!

The final model (other than the ZAP Alias which I will not be talking about here) is the Detroit Electric ZAP-X based on ZAP’s ZAP-X concept which is in turn based on the Lotus APX, a 5-seater MPV developed by Lotus. Proton’s MPV could possibly be some variation of this concept by Lotus.

The Detroit Electric ZAP-X will be a monster, featuring 400kW (536 horsepower) of power and travelling up to 225km/h. Sounds like a BMW X6 competitor to me. It takes less than 4 seconds to get up to 100km/h.

Range is expected to be about 525km which indicates rather large lithium ion batteries but no figures were given on how long it would take to charge them up.

An expected launching date for the ZAP-X is the 4th quarter of 2010, and the Detroit Electric MPV/SUV vehicle will cost 71,400 Euros, or an astronomical RM355,400!

The usage of Proton cars to provide the base chassis for this project actually makes sense as Youngman (one of the partners in Detroit Electric, the other is ZAP) already has a relationship with Proton for it to supply left hand drive versions of the Proton GEN2 for rebadging in China as the Europestar RCR. Initially the orders will be CBU, but recently CKD kits have already started being shipped to China for local assembly there.

In fact, the faint sketch you see used to depict the Detroit Electric mid-sized sedan may be what a facelifted Europestar RCR will look like once the CKD operations in China are running smoothly and Youngman decides to give the Chinese GEN2 its own styling.

The technology used in these models are probably too expensive which is why the prices are quite high, making these cars far out of reach from the mass market here. It would be interesting to see if anyone brings them in here, perhaps Proton themselves.

Hat tip to thecordwainers.

Thai Summit Autoparts Industry’s executive vice president Thanathorn Juangroongruangkit said in Bangkok today that although Thailand and Malaysia took different routes to develop their automotive industry, both were successful in their own ways.

He also added that the Malaysian government should continue supporting Proton as it had become crucial to the backbone of various industries here such as autoparts, steel, and petrochemicals. He claims that without Proton, industries will collapse and thousands of people will become unemployed.

He thinks that a self-developed automaker is viable and said that if he could have made a decision 30 years ago, he would have gone for an ASEAN car for the Thai auto industry rather than a national car, as the Thai market is just too small to sustain its own car. But now its not possible anymore as the window of opportunity is closed, he admitted.

Source

Proton’s managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said that Proton prefers a foreign partner rather than a local one, as an established foreign automaker provided more value in terms of technology, marketing and other areas. However a partnership would most likely only happen when Proton becomes stronger and the time is right.

During the great “find Proton a partner” saga that happened a few months ago, there were a few local and foreign possible partners for Proton. Local partners included the Naza Group, DRB-HICOM and Mofaz, while the possible foreign partners were PSA Peugoet Citroen, the Volkswagen group and General Motors.

PSA came and went first, then it was Volkswagen and GM. The Volkswagen deal almost happened but got called off by the government at the very last minute. Apparently talks with GM are still ongoing, but these talks are said to be at extremely preliminary and exploratory stages.

Source

Related Posts:
All posts regarding the Proton and Peugeot partnership
All posts regarding the Proton and Volkswagen partnership
Khazanah still wants equity partner for Proton
Proton-Volkswagen partnership: no go!
Proton-Volkswagen talks are OFF!
Why the Proton-Volkswagen partnership was a no-go: the inside scoop

India’s The Economic Times reveals that Proton has finalised its India plans and is set to enter the Indian market initially with a 3 model line-up comprising of the Proton Savvy 1.2 liter, the Proton Saga 1.3 liter and the Proton Persona 1.6 liter.

They will be introduced in phases with the first to hit the market in early 2009. The cars are currently undergoing trials and technical evalutations - India’s homologation rules are quite stringent from what I’ve heard.

There is also some new news regarding Proton’s talks with a JV partner in India. Apparently talks with Mahindra & Mahindra have fell through, according to an unnamed senior executive from Indian company Proton Motors Ltd.

“We were close to striking a deal with M&M, but they have preferred to distance themselves from the car market after the Logan sedans not too successful run. We are now looking for a possible joint venture with other Indian automobile companies, particularly with a strong focus on marketing,” the senior executive revealed.

He also added that Proton will be looking at the high fuel efficiency niche as part of its Indian strategy, and there is also the possibility of introducing Protons there with the ability to use Compressed Natural Gas as fuel.

Related Posts:
Proton and the Indian automotive industry

Source

According to BKK Autos, Proton and its Thai distributor Phranakorn Auto Sales Co. Ltd has raised its Thai sales target for 2008 from 2,000 units to 5,000 units, based on a surprising Q1 2008 total sales of 1,500 units.

The majority of Proton sales in Thailand comprise of the Proton Savvy, which accounts for half of total sales while the GEN2 and Satria Neo take up 30% and 20% respectively. The Savvy is popular because of its fuel efficiency. Congratulations to Proton for outdoing your initial sales figures. We’re all waiting to see how much higher you can go.

On a side note, I wonder how the Naza Forza is doing in Thailand.

Source

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

Proton’s Iranian distributor Zagross Khodro is currently selling 17,000 units of Proton cars in Iran annually, but intends to hit 30,000 annual sales by next year, with a target of 100,000 Proton cars annually five years later by 2013.

“There are about 10 million car owners in Iran in the low-end market today and when they decide to move to the next level, they are more likely to choose Proton cars. Car sales would be driven by Irans significant young population who had good spending power and a strong desire to move into the middle-segment market. The revenue coming into the country is also good, especially within the oil and gas and handicraft sectors which would boost consumer spending,” says Zagross Khodro director Mehrdad Gholami.

Zagross Khodro has been Proton’s exclusive distributor in Iran since September 2000, starting with Proton Wira. [ Source ]