Proton Holdings Berhad and Edaran Otomobil Nasional Berhad is said to be in talks for a merger between EON and Proton’s own Proton Edar distribution arm.
This would create a single Proton distributor, which would reduce competition for Proton car sales as there would not be any competition between Edar and EON anymore.
EON does not just sell Proton cars in Malaysia. It also owns 48% of Mitsubishi Motors Malaysia Sdn Bhd, and sells Mitsubishi cars as well. EON subsidiaries also sell Volkswagen and Audi cars.
Late last month, there was a proposed voluntary withdrawal of EON from the Bursa Malaysia main board. HICOM Holdings Berhad which held 79.05% of EON at that time made a general offer to acquire the approximately 52 million shares it did not own at RM2.10 each. Delisting is expected to be completed by Q3 2008.
Looking to sell your car? Sell it with Carro.
They shud have done this long time ago.
arch747 said,
April 25, 2008 @ 12:52 pm
They shud have done this long time ago.
—————————————————————-
Yeah, Korek Korek Korek
Actually Proton has changed under the new management, but will it stay on this path for long? Just wondering…
unity is our way of life…MERGE!
is this a cost saving measure or just a marketing strategy?
elpaciko said,
April 25, 2008 @ 2:54 pm
is this a cost saving measure or just a marketing strategy?
—————————————————————-
Both.
korean dramas..1st they seperate when shit hits da fan they merge..wat a show !!
Do whatever it takes la…Myvikiller, you’ve been on this page for 2 hours, you must have really like it here, and I bet you still are…anyway what is it about Myvi that you hate it so much?
yes!! i really hate EON. No idea what they doing for my Proton car.
hope Proton can merge with them and give no more problems.
nobodyatuk said,
April 25, 2008 @ 5:04 pm
Do whatever it takes la…Myvikiller, you’ve been on this page for 2 hours, you must have really like it here, and I bet you still are…anyway what is it about Myvi that you hate it so much?
—————————————————————-
No, I was having a break. Anyway, I don’t hate Myvis, I got this idea when the new Saga was launched as it will snatch the Myvi sales.
Good move. But I really hope they don’t just focus on the cost savings but also the quality of service. Customer would pay more for quality.
Proton thought it can control the sales and marketing for its cars. Hence it brought over USPD then expelled EON as master distributor. Tak tau malu, I really pity those people who had worked hard for EON since the olden days until USPD came out and then Proton Edar. Proton wanna earn everything but now wanna plan to merge. Stupid stupid
the main problem is the car, not much of the dealer.
Anyway, do whatever they want…change name, change identity, change logo, change management, change motto/slogan etc.
They need to control everything top down. Just like what UMWT is doing now with their own manufacturing, 3S centres, and even 2nd hand car business. By having full control it’s easier to react to market demand. If done right, it can also add value to the brand.
I believe the problem with Proton is because the simple do not listen to what their buyer are telling them…. improve quality!!!
How many of you guys have experienced brand new proton cars coming out from showroom with full of problems. It really sucks and the best part is EON or Proton Edar are the same in one thing, many cars coming out from them have some kind of problem. I know proton does some kind of QC, but don’t EON or EDAR should bare some responsibility on the cars that they distribute?
all these problems in regards to PROTON, EON and EDAR fiasco started from that idiot, T.Mahaleel..the guys simply couldn’t manage the company properly, was arrogant thus destroyed these three companies..just look at what he had done when he took over..I feel that the new management is more focused and a aware what is needed to be done..only need to catch up almost ten years of damage done by Mahaleel..
WIll new merger sell non-proton cars?
I heard about DRB-HICOM proposal to dispose its EON Bank shares actually. Because they bought Muamalat Bank from Syed Mokhtar Bukhary. In Malaysia, one person cannot own more than one bank. Syed Mokhtar when aquiring late Tan Sri Yahya’s DRB-Hicom shares actually own 2 banks which is EON Bank and Muamalat Bank. For EON to merge with Proton Edar I think the best way is to absorb the existing authorised dealer into Proton Edar and merge between them. Actually even in small district we got 3-4 Proton dealers both from Proton Edar and EON (mostly Bumi entrepreanour). This is not economical. While the exisiting EON can continue to sell other marque but still have service centre for Proton. I just wondering, can the merger affect delivering time/waiting period? Before this, people tend to survey from one door to one door of either EON or proton Edar to get the shortest waiting period for their booked car. So for the ‘oversupply’ of car salesmen, they can fill other vacancy available int he country.
I agree with some of the comments above for PROTON to look at how to rationalise EON and EDAR. The best for now is to definitely focus on EDAR, and let EON go thus leaving them to focus on their other businesses and products which are in different categories vis-a-vis PROTON which is more a low to middle income group product.
As for comments on Mahaleel, i feel that he is both responsible for the good and the bad problems that PROTON is facing today. I think he had the vision to take Proton away from its dependency with Mitsubishi and developed a common platform for cars we are now seeing from the Gen 2, Savvy and the SAGA and soon the SUV. Buying Lotus was also a master stroke in terms of branding and technology transfer. Mahaleel although a visionary in view of long term growth of PROTON, failed to look at the more current problem of distribution, customer service and quality. This is where he failed, the finer details of what makes a company great!
I agree that EON should be asked to leave, and PROTON and EDAR look at tightening their commitment and focus for ensuring quality is met with efficient customer service.
The problem is no that Proton has no will to try, but don’t you realise that Proton depend too much on government? Pathetic Malaysians are also criticising Proton for no good reason. Over-expect perhaps? Too bad, you’ll find Mercedes also receive criticisms in Germany, and Toyota receiving criticisms in Japan. Their complaints are the same: “Useless car”, “Stupid engine”, “Dumb technology”, etc.
The only difference is that despite their criticisms, they’re made to support their country’s economy that all changed for their automotive world as well…
Did Malaysians try to do so for Proton? Perhaps you can ask yourself before blaming on others or the government more not investing enough. Perhaps, you should be thankful that so far, the only automotive branding backed by government is Malaysian automotive (and more precisely is Proton). Others are totally privatised, but I doubt Malaysians have sufficient influence and capital to establish a private mega-company…
hello all…What? no way…Edar merge with EON? what a joke…Proton makes a stupid mistake when established Proton-Edar..what for laa???the reason of EON itself is to distribute national brand cars (thus the name Edaran Otomobil Nasional)…Proton tot that they could have better distribution system when inc. Edar…that’s a bullshit man…more problems have emerged since Edar started…
The problem come from Proton itself…not from distributors/dealers…EON is much more effective than Edar laa…btw, Edar implement they operation based on EON who have experience more than 2 decades of distributing cars and currently the largest sales/after sales network in the country…ciao
No matter how they merge or work or give and take,
pls get your sales to attend a very good lesson to learn how to serve customer.
I went to a distributor recently to ask details on Satria, as they were now selling cheap at 43,900. I asked and they answered, asked again and answered, like 1 question and 1 answer. They don’t even have the desire to close my deal… I left my phone and 2 weeks pass, I dont receive any follow up call….
What is important is to have an effective sales system, that’s all. In a dynamic industry copany’s direction must or should change, for the better. Effective sales system also does not start at the showroom. It stats even from CEO’ office, design office and even in production/ assembly line. My 2 sen.