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MITI: Proton free to source from any vendor

Deputy International Trade and Industry Minister Datuk Mah Siew Keong has issued a response to Datuk Shahrir’s comment on local content in Proton cars.

The Government encourages Proton to use as much local content as possible to develop the parts and component industry. This is also vital to achieve and maintain quality in Protons range of cars and for competitive pricing. Our car industry must have quality. Where it wants to source its parts from, that is up to Proton, but we encourage the use of local content. It’s up to Proton to decide the proportion of local content in it’s cars.

Well then, since according to Datuk Mah it’s not a government imposed rule, let’s see if Proton takes this path in the future as part of it’s struggle to improve it’s competitiveness. Datuk Mah agreed with Shahrir that automotive vendors who could not be compettive after 20 years should increase quality and competitiveness or close down.

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Audi Shooting Brake Concept

Audi presents the Shooting Brake Concept at the Tokyo Motor Show 2005. The Shooting Brake Concept inplements design elements of both a coupe and a hatchback into one.

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Nissan Moco

Nissan shows it’s Nissan Moco Preview positioned as a driver’s ‘best friend’ which helps him or her enjoy his everyday life like a best friend should.


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Shahrir: Reduce local content if not competitive

Datuk Shahrir Abdul Samad, chairman of the Backbencher’s Club says if high local content is making Proton not competitive, local content should be reduced.

“If AFTA requires only 40 percent local content, there is no need for us to go up to 90 percent, unless it makes Proton cheaper and more competitive. We have to make a rational decision. If our cars are expensive due to high local content, we need to reduce the price by reducing the local content. They have already been operating for more than 20 years. If the quality of their products is still not up to standard and cannot be exported, they should close down. If they are still not efficient, they should not be in this industry.”

The problem with our locally manufactured components is likely lack of volume which drives component prices up. We also have the problem of incompenent component manufacturers making components without proper QC. I’m sure any Proton owner curses the car’s air cond vents.

If Proton is to be truly competitive, such social responsibility towards local vendors should not be imposed on them. They should be free to source for components anywhere in the world they want, as long as it makes sense. This should give the local components manufacturers a kick in the ass and hopefully they buck up.

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2006 Toyota Ractis

Toyota had just launched this new model in Japan earlier this month on 8-10 October 2005. The Toyota Ractis is a compact mini-MPV class of car. Quite similiar to the Toyota Passo/Daihatsu Boon/Perodua Myvi type of vehicle.


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European manufacturers to go the turbocharged way

European carmakers feel that turbocharged small engines are the way of the future, to increase fuel economy and reduce emmissions.

Instead of using a big normally aspirated engine, a small capacity engine with a turbocharger is used so that fuel economy and emmissions is lower, but the turbo can give that required surge of power whenever maneuveres such as overtaking are required. So the engine only behaves like a larger displacement engine when you want it to. Sounds pretty logical right?

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Renault offers to buy Volvo, Ford declines

Industry rumours say Renault has approached Ford Motor Company for an offer to buy Volvo as it needs to compete with German premium brands, which it cannot do with it’s own large vehicles. Ford declined the offer.

Renault is now looking elsewhere for a premium brand to purchase. Seems that it cannot use Nissan’s Infiniti luxury brand as even though it is well known in the USA, it has no profile at all in Europe.

One brand that might fit the profile is Saab, owned by GM currently.

We also might see another big merger in the future. Carlos Ghosn has been studying the feasibility of forming an alliance with either GM or Ford through means of a share exchange.

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2006 Hyundai Accent

I previously blogged about the Hyundai Accent SR, which was to be a 3-door turbocharged hot hatch. What’s likely to come to Malaysia though is the sedan version of the Hyundai Accent which is what I’m blogging about now.

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BMW 335i to get twin turbocharged inline-6

BMW’s 3.0 liter Twin-Turbodiesel won the 2.5 to 3.0 liter category in the International Engine of the Year awards. With this new-found expertise on how to mate an engine with a turbocharger, they are going for a new petrol twin-turbo engine for their E92 335i.

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2008 BMW V3

Looks alot like a Honda Jazz isn’t it? It’s just concept art at the moment. The BMW V3 is based on the BMW X3 platform, and is a 6-seater people carrier.

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