In order to enter the coveted Chinese market, it is part of the rules and regulations that you have to partner up with a Chinese company to set up shop there. Proton has had intentions of entering the Chinese market for quite some time and now it is rumoured that they’ve identified a suitable partner for them to enter the Chinese market with.
The prospective partner is Jinhua Young Man Automobile, based in Zhejiang. Rumours are that Jinhua is setting up to build a sedan model with Proton at it’s factory in Shandong. Jinhua also assembled 800cc minis in Iran with Iran Khodro.
The first sedan is expected to roll out of production in June 2006. It’s not known whether it will be a Proton or Jinhua-badged model, or whether it will look like any of the Protons we have here in Malaysia.
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Hmm… not sure if this is a good or bad thing… I sure do hope there aren't any Proton-badged Jinhuas… with Chinese car manufacturer's famous low quality, it might not be a good thing :p
Youngman is a small player… could be good for a start 'coz it is easier to control. Also partnership with a smaller company proton has the advantage on the terms. But I agree with the above proton has to be careful about quality of the manufacturers in China. Proton may not have to stick with one partner, it is also wise to look for 2nd mid sized parner.
lately there were full of news about proton, some good some bad some confuse…… so what is it for me as the shareholder. ? what are the long term plans the proton ppl have in mind. the share price had drop quite badly, otherwise I would have sold them.
in this china plan, I can only say "wish you all the best"!
small company ?? parntership Youngman to control tersm of partnership ?? will Proton achieve econmies of scale with small company ??
anyway, hope that partnership would create cheap Proton car..it is BETTER to get CHEAP, LOW QUALITY Proton car than the current EXPENSIVE, LOW QUALITY ones..of course lah, everyone wants the best of both factors-cheap,quality – just being realistic
has Proton ever try to partner with US company apart from failing with European (VW) and Asian company (Mitsubishi) ?? u know lah, the culture of Asian – kiasu, sure cannot get transfer technnology..i wonder if US carmakers are more sincere… maybe need to change to Dasar Pandang Ke Barat already…
i dunno about car industry, but in the electronics industry, the Japanese is clever in establishing different manufacturing plant in different places in different phase..eg: semiconductor operations.. phase 1 maybe in Korea, phase 2 maybe in Malayisa, assembly phase maybe in China..reason – to avoid WHOLE process of technology copied by host country…. how to get technology trasnfer if the knowledge is 'segregated' like that ??
hope the BOD of Proton would read this and already consider such factors in play….
as long as chinse car manufacturers dont come here,proton can do wateva thy want there!
from a business point of view, i see no problem with such set up. Proton will recieve royalties, which will contribute to their profit. It is just the matter of how much proton is willing to transfer (technology, technical expertise) . In this world of gloabalisation, proton need to adapt, and i thnik they are doing it right now, I just hope, that any agreement will be sealed tight.. Market in malaysia is getting competitive, and for them to remain profitable, operation /market / product expansions are a must, not a necessity.
I think it is not so much for gaining the technology transfer from China but more for penetrating the very wide Chinese market (Population: 1.3 billion). After all, the quality of the chinese made cars are probably at par, if not better than the protons.
Been to China before and have noticed that big players like Chrysler and VW have plants in China. There are a lot of VWs cars (Polo,Passat, Sharan) on the road.
Who knows, we might also see the Wajas and Savvy's on the chinese roads soon!!
If they plan to sell Wira there, would be funny. A rebadged rebadge car, hahaha.
If Proton ever really produces its cars there, it'd better hope that the sales won't be too good. Good enough sales are good enough. Why? Cos some Chinese will definitely pirate the cars if the sales are good. Although copying is the best form of compliment, it will actually hurt sales. It's like original DVD compared to DVD9, which will you buy? :)
wow china? aren't proton supposedly to have a manufacturing partner on the talks now with jinhua using proton parts to manfacture Jinhua cars or Proton? Definitely Jinhua badge as proton has no licensed right in china to manufacture or sell cars. Well whát's the differences maybe Proton might be one day own by the Chinese which then it might be a great chance being an international car player. If proton find themselves could not turn much around why not just sell, but of course not for 1 eurolah. Well we good at that is not the matter of national pride is just facing the facts. Well maybe we should just leave the manufacturing to the chinese it may be of better quality then as they just need to have the technology then put the Jinhua badge and export it back to malaysia it may increase the sales too. Jinhua the Malaysian national car hooray. China Boleh… sorry Malaysia Boleh apa pun boleh jual dan lelong pun boleh