The Proton Edar Dealers’ Association Malaysia (PEDA) is seeking help from the government and Proton Edar to help them out revive their businesses because more than 90% of them are currently losing between RM15,000 and RM20,000 a month. Each dealer needs to sell 40 cars a month to break even, but are currently managing an average of 23 cars.
The latest request to come from the PEDA is a minimum quota on hire purchase loans for new Proton cars for financial institutions. They want to drag banks into a politically driven situation that might result in bank hire purchase loan returns not to perform as well as they should. What will the bank shareholders say?
“Loan rejections will remain high, used car value is not expected to improve significantly and non-national cars will continue to give discounts. It would seem that our banks have placed Proton cars under a high risk category wherein our buyers are given a third class treatment,” said PEDA president Wan Ahmad Sepwan Wan Abd Rahman.