Proton posts RM52.03 million profit for Q1 2008

Comments

• AI-generated Summary ✨

  Comments express skepticism and criticism regarding Proton's recent profit, with some questioning if it's truly sustainable or just a result of protective market conditions. Many highlight ongoing quality issues, past losses, and reliance on government protection, suggesting Proton still has a long way to go before being considered truly competitive globally. Others call for open-market reforms, reduced tariffs, and better quality control to genuinely improve Proton's standing. Overall, there is a mix of cautious optimism and frustration about Proton's achievements.

• n8cky (Member) on Aug 29, 2008 at 8:44 am

  Imitating Enron? I’ll never dare to throw a stake on Proton’s share.
  If Proton shows few hundred thousand, or few thousand or revenue.. probably I’ll take it.
  “Proton posted a ‘profit after tax’ of RM52.03 million, an improvement compared to ‘net losses’ of RM46.7 million in the corresponding quarter of the previous financial year.”—-??
  Enron~

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• auctioncenter2u (Member) on Aug 29, 2008 at 8:55 am

  SAGA was the one helps PROTON.

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• tanasi (Member) on Aug 29, 2008 at 8:57 am

  it’s turning around, but the journey is anything but over.

  rising material costs, energy costs, tighter requirements for a more fuel economy powerplant, stricter emissions and homologation standards here and in the markets where Proton plans to continue to have presence will be the challenges that the company must brave through.

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• ReactiX (Member) on Aug 29, 2008 at 9:02 am

  Persona and Saga actually. Btw, kudos Proton! When will Perodua announce their profit then? Hope both our national carmaker get lots of profits :)

  ~ReactiX

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• ezralimm (Member) on Aug 29, 2008 at 9:02 am

  n8cky, i just watched a documentary on Enron, about how they manipulated the power market and basically blew up their own bubble. It’s simple and elegant, quite brilliant actually. They were literally creating numerous small companies to ‘feed back’ into the main company in order to generate false profits on the main company’s statements.

  Proton is not creating numerous small companies like the Enron corp during it’s heyday. As far as i know, it is just one company and subcontracts the production of parts to local OEMs when necessary.

  I’d suggest you read up abit on the Enron scandal before posting a comment like that. Nimble minded readers may get the wrong idea from reading your post.

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• zzzxtreme (Member) on Aug 29, 2008 at 9:06 am

  I wonder if that is enough to cover the Rm1 billion R&D for Waja LOL

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• rexis (Member) on Aug 29, 2008 at 9:21 am

  And how many % that profit come from Malaysian?

  Will the new MPV keep proton on track?

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• kerelbort (Member) on Aug 29, 2008 at 9:36 am

  congratulation to Proton and SZA, hope your turnaround plan would work as per plan.

  Good luck to all in Proton. Improvise your work quality guys.
  Good luck in expanding further into the world market.

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• bmpower (Member) on Aug 29, 2008 at 9:41 am

  The profit margin still considered low. Since the loss last year is huge. but ot’s a good sign. After this, saga will be sell outside of malaysia and surely a bomb (but that if their price is right for outside market) just like persona in thai, UK and OZ (Paul, do you know how many unit sold there? – even Savvy sold over 2K unit in UK :o) .

  Proton.. you can do it.. bring more money to malaysia!.
  and Paklah.. please step down.. hehe

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• mukhri88 (Member) on Aug 29, 2008 at 9:43 am

  Agree with tanasi. BTW they do own Lotus but they don’t run it, right. I’m not well versed how much of Lotus R&D Proton can take and use in Proton cars and how using Lotus R&D can save money for Proton.

  Isn’t Lotus R&D one of the best in the world? How does that work?

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• abtm (Member) on Aug 29, 2008 at 9:44 am

  Well, they’re expected to post continual profit aren’t they, without tax their cars are the only real alternative for the masses- what’s to brag???

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• mukhri88 (Member) on Aug 29, 2008 at 9:53 am

  abtm, they were not doing well before, even in a protected market. That’s how bad is was for Proton. Now they’re out of the red, brag a bit la..

  They ain’t world class and won’t be for a long time to come. So a bit of good news goes a long way my friend.

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• dodgeviper88 (Member) on Aug 29, 2008 at 10:11 am

  Well, I must say if this figures are true, then it is quite impressive as most other car companies are losing their pants off. BUT like so many other people said, you should be making money in a protected market. I guess since now Proton is making money could you pls get rid of the taxes?

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• hamster (Member) on Aug 29, 2008 at 10:18 am

  “zzzxtreme said,
  August 29, 2008 @ 9:06 am

  I wonder if that is enough to cover the Rm1 billion R&D for Waja LOL”

  Profits are after R&D costs as well.

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• Roti Naan (Member) on Aug 29, 2008 at 11:58 am

  Hey Proton (aka the “big-baby” who refuse to grow up),

  Get the Govt to end the foreign car importation and sales tax so that other cars can be sold in Malaysia without those ridiculous high price tag. Create an equal play field and healthy competition among car manufacturers.

  Then, we’ll see if you can still make profit in the following year.

  Proton, you dare to do that?

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• tanasi (Member) on Aug 29, 2008 at 12:16 pm

  hey Naan,

  If proton can ask the Govt to do that (and I am sure no govt of any country would) surely it can also ask PakLah to step down, lower the pump price, and channel all the money in the treasury into its own coffers.

  make profit also wrong, to be in the red also wrong. we truly live in flip-flop times.

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• 4G63T DSM (Member) on Aug 29, 2008 at 12:18 pm

  1) good that they are turning around.

  2) But that sounds really hollow as that “profit” still comes from selling into a uncompetitive and protected market.

  Its like winning the 100m when all your competitors are skipping on only one leg. I wont see that as any achievement.

  Proton will get my respect once they can float on thier own. Until then, its all just acedemic.

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• bmpower (Member) on Aug 29, 2008 at 12:37 pm

  It’s not a good time now for them to make such a ‘false statement’ like you all think. They already in the right way.

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• fastcx (Member) on Aug 29, 2008 at 1:57 pm

  agree with tanasi, the so called rakyat are actually the same as gov…flip-flop gang

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• mukhri88 (Member) on Aug 29, 2008 at 1:59 pm

  Does this translate to about RM200m annual tax after profit for 2008? And about RM6b in sales for this year?

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• mukhri88 (Member) on Aug 29, 2008 at 2:02 pm

  hehe.. government of the people, created by the people, for the people. whaddaya expect?

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• ALPINA BMW (Member) on Aug 29, 2008 at 2:11 pm

  all hail corruption

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• moha774 (Member) on Aug 29, 2008 at 2:23 pm

  Paul, I think the real news during the press conference is the news about its new MPV..
  http://www.mmail.com.my/Proton_MPV_out_next_month.aspx

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• redz (Member) on Aug 29, 2008 at 3:21 pm

  pak cik kayo hehe

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• JonW (Member) on Aug 29, 2008 at 4:00 pm

  R&D cost shouldn’t be too big of a problem for them, since they can apply for R&D incentives from the goverment. there’s is a fund set aside for that
  what they need to watch out is cost and quality

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• Roti Naan (Member) on Aug 29, 2008 at 5:14 pm

  tanasi said,
  August 29, 2008 @ 12:16 pm

  hey Naan,

  If proton can ask the Govt to do that (and I am sure no govt of any country would) surely it can also ask PakLah to step down, lower the pump price, and channel all the money in the treasury into its own coffers.

  make profit also wrong, to be in the red also wrong. we truly live in flip-flop times.
  ————————————————————–

  Making profit in business is not wrong. However, “controlling” and “manipulating” the tax and successfully up-ping other new car prices in the name of protection (yeah, we hear that like 20+ years oredi from the govt) is
  pretty low-down in doing business. What worst is that the rakyat are limited with their choices of cars they wish to buy with their average spending power. Where is consumer’s rights?

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• goguncas71 (Member) on Aug 29, 2008 at 5:48 pm

  Proton Protected?

  What about Perodua, Japanese owned, no need for any RnD, gets all the same protection and tax breaks like Proton. The fact is that currently Proton goes head to head with a Toyota/Daihatsu proxy on a level playing field and has not collapsed. Think about it…

  And since we’re talking profits, how much does Perodua (the current market leader) makes. Where’s the profits (taxes) and exports it gives back to the country in return for all it’s tax breaks?

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• mystvearn (Member) on Aug 29, 2008 at 5:55 pm

  Still early days. Also profit from protected market does not mean anything.
  I want to hear profits coming from exports not domestic market. That is something to be proud off.

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• elpaciko (Member) on Aug 29, 2008 at 5:59 pm

  people always call for abolishing car tax as if it will increase the quality of life.

  the way i see it…

  less tax = less money for g
  less money = less free educaton/healthcare (please dont talk about corruption here)

  Which one will lead to a better life? free education/healthcare or cheaper honda/toyota?

  unless youre just a teenage boy who daydreaming about honda.

  and of course, if g abolish car tax, surely other tax will be increased,

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• tanasi (Member) on Aug 29, 2008 at 8:08 pm

  so in this day and age you still believe that the bloated prices of the toyotas and hondas are purely and solely due to Proton? Cmon, you’ve gotta be kidding.

  Have you seen cars from the other markets – the one so called ‘fair’ and ‘unprotected’? They are cheap not for no reason – non assisted steering, manual window regulator, single side mirror, material color bumper, no heated rear glass – these kind of equipment level is still acceptable for base line models to be cheap.

  but not in Malaysia. The market has certain expectations and these things are not cheap, even for Proton or whoever for that matter.

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• munky (Member) on Aug 29, 2008 at 8:12 pm

  Why blame proton ? It’s the gov who’s making the rules

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• Roti Naan (Member) on Aug 29, 2008 at 8:51 pm

  govt and proton are abang-adik, Since the topic is abt proton, proton gets the bashing, naturally…

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• sxe10r (Member) on Aug 29, 2008 at 9:00 pm

  don’t so proud with proton … without proton everyone is driving he self a dream car without tax …

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• torque (Member) on Aug 29, 2008 at 9:15 pm

  Man….this is ain’t gonna end izzit? Heh! Heh! :-)

  Roti Naan,

  Sorry dude, I can’t agree with you about “govt and proton are abang-adik”… it’s more of a ‘Master and the puppets’ kind of scheme! Everyone knows Proton is owned by Khazanah right? Who else sit in the chairs of Khazanah other than a bunch of government cronies!

  Tanasi,

  On your post “make profit also wrong, to be in the red also wrong”…you got a point right there dude. Aisay, if Proton announced they lose money…haiya, this thread mesti kena bomb like nobody bisnes punye! Bash kaw-kaw wan! Friends, last time when Proton is under TM with it’s all protective market, the bloodly guy lose money like sh*t lar. Making ‘sporty’ cars tak habis-habis until Proton lost ALL of it’s credibility. At least treat this as a good news even as little as sand.

  Datuk Syed Zainal,

  Congrats for all your good and hard work man (even you may not read this)! You truly are worthy to lead Proton to it’s better future. Looking forward with the coming MPV and please do upgrade your quality b’coz Proton really need to tackle that main problem first. It’s still a very very long way to go Proton!

  Cheers everyone! Peace! :-)

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• BanyakMasukWorkshop (Member) on Aug 29, 2008 at 9:48 pm

  mukhri88 “. Now they’re out of the red, brag a bit la.. ”
  please, please growup!!!
  if you dont realise how silly your comments are, i’ll tell you how silly they are.. proton is a listed company, governed by laws that all listed companies have to adhere too.. whether loss or profit, they must announce their results to everyone. Thats a fact. its not bragging.

  “without proton everyone is driving he self a dream car without tax …”
  likewise, there is no country in the world where you drive a car without tax.. you can go anywhere in the world, and taxes are a fact of life. maybe you should actually go to a proton showroom one day, and pickup a price list.. in the breakdown of the OTR price of the car, you will see a column listing tax and excise duty.. yes, believe it.. proton cars are taxed also.. wow.. amazing… so there is no such thing as tax free, not even proton.

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• syamness (Member) on Aug 29, 2008 at 11:25 pm

  give proton a break man. As far as i see it, proton has been moving in the right direction (albeit at a rather slow pace)..
  as for the protectionism, hahhaa, you guys talk about removing taxes and all that shit… u think its easy for them? yeah we’ll we all squeak like wussies the minute petrol prices rise, despite the fact that we are paying like less than half of the actual cost of petrol. We, all of malaysia are enjoyin a form of protectionism , through OIL SUBSIDY!

  Put yourself in their shoes: You’ve just started, need a bit of help, so the govt implement protectionism policies here and there, then suddenly, the govt say… aa cannot cannot, its been too long, take away protection, bam open up market… mampos Proton.
  Now imagine if the Govt suddenly say..aa cannot cannot, subsidy is killing the govt budget, free float petrol prices…bam we all mampos in like a month or so…wait, no need to imagine, you just got a little glimpse of it recently, just a prick…the petrol price went up..

  The point is, don’t be too harsh on Proton. I’m sure we all were pissed when the govt raised petrol prices, but hey, we’re protected, for a reason, coz if not the whole economy might collapse, inflation, bla bla, etc.. They just need time… If you think you’re good enough to not need protectionism then you can go to Petronas station, fill up the tank with, say RM100 petrol, but at cashier you pay RM300 just for the sake of anti-protectionism… Even if anyone can financially afford to do this, I’m sure I can wait till Hell freezes over and still not a single person would do it. Get my point.

  But yeah it only started to get right when idiot TM was kicked out… from here on all we need is hard work and more hard work…

  I know some might be thinkin about ‘comparative advantage’, that somehow, maybe we are just not suited for automobile manufacturing, maybe its the knowledge, people or resources, just not suited for this stuff. So what are we gonna do?, continue with just palm oil, and petroleum export for the next 50 years. My opinion is that we cannot become a developed nation unless we have home grown capability for industrial manufacturing that are developed by ourselves. And this is what we are trying for with Proton. U see any other enterprise here in Malaysia doing this?

  Sorry, got a bit patriotic there, because its nearing end of August i think.

  OK, you can all beat the shit out of this comment now…

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• bobdbilder (Member) on Aug 30, 2008 at 12:40 am

  Maybe some of you were in diapers 10 years ago when every country around us was wilting under the economic crisis. Or maybe some have selective amnesia. Everybody around us subsribed to the IMF formula of increasing interest rates while still letting the capital flow out. This is textbook economics. After 10 years people realized that you cannot simply apply these to every country. The ones who did not follow were countries like Malaysia, China even Vietnam. Countries that did follow fundamental IMF rules recorded negative growth and some never recover. In terms of economic growth we are better off than most western countries even Germany or UK.

  Economist now view what we and most East Asian countries did back then, were right. What we did was buying our own manufactured items. We kept capital outflow to a minimum. We tried very hard to keep the money in Malaysia and not getting loans which we would then also have to follow by their rules. People seem to forget how the westerners predicted doom on us for fixing the currency rate to the USD. But we survived because we know what is good for us.

  For a brief period, our economy almost followed down the drains. BLR shot up overnight to 11%. Most of us defaulted on credit cards and loans. We couldn’t get loans and were paying through our bleeding nose. All bacuase the Finance Minister at that time wasn’t an economist and listened too much to the IMF.

  Now, when every single country is giving up on the Doha initiative, our local guys still want to see it happening here? Or are we too ignorant about the fact that the Doha initiative is doom to failure because major world economies wont let go of their subsidies in agriculture.

  Yes, our government protects local business coz it keeps the money here. But so do other much more bigger countries. Why do Proton have to build to European emission laws when the Vios or the City doesn’t? They don’t sell Vios there because the engine was never meant to be destined to a market with strict environmental laws. But Proton does. Why does Proton test for Euro NCAP while the Vios or the City doesn’t? Same answer.

  Proton needs to spend more on testing and verification because it is targeting that market. Therefore higher cost in R+D is involved. Which is not fair deal against competitors who doesn’t.

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• topgunthang (Member) on Aug 30, 2008 at 12:46 am

  haha. no need to proud then. its basically a charity business or a ghost business…an illusion if u must for a means. its getting spanked in sales by porsche. the proton dealers close to where i live have closed down or at least switched to fully other makes i.e suzuki and mazda. but nevermind that….as long as it achieves a 150% increase in sales from ‘that’ time.

  proton needs to try extremely hard to lose money in malaysia. very hard. it is almost impossible for them to lose money.

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• ikttan (Member) on Aug 30, 2008 at 1:06 am

  Good … now have to run very fast or merge. Need to ship at least 500,000 vehicles to be a stand-alone manufacturer these days. Even then … it may not be enough. Let’s all buy Protons … hidup Malaysia … =)

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• Roti Naan (Member) on Aug 30, 2008 at 1:45 am

  So, the 2 important questions here may be:

  When will proton be REALLY ready to stand by itself and be competitive in the global auto manufacturing?

  Considering all the money invested, spent and lost over the 20+ years period,
  How long will Proton expect to make REAL profit? Afterall, Proton is a business venture, yes?

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• dodgeviper88 (Member) on Aug 30, 2008 at 2:29 am

  In the era of globalization, there is no small car companies that can survive. Case in point; most independant British car manufacturers are either owned by some Arabs(Aston Martin) or Russians(TVR) or other car companies. So what makes you think Proton can survive by itself?
  In my humble opinion Proton’s golden opportunity was when VW was having an interest in the company. I hear that Skoda is using last generation Audi A4 platform to create their own vehicles. Hell! Imagine our Perdanas were redesigned exteriors of A4 or even the Passat, it’s anytime better than a 30 year old mitsubishi galant derivative.
  Time and again I had always believe that Proton should sooner or later merge with another car company. Even Perodua is smart enough to link itself with Toyota. I seriously beg Proton, please don’t be so stubborn-la. I’m not being negative by saying you cannot survive by your own, it’s economically impossible. Stop wasting billions of ringgit of unecessary tax and causing hardship to the rakyat. Please open your eyes wide wide and grow up.

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• Topper (Member) on Aug 30, 2008 at 4:08 am

  i support proton all the way.. people got angry now because government protection.. who knows in the future because of this protection proton can be one of biggest car manufacture. Same as PLUS, people say Tun M waste people’s money on it. Now almost all people use it although there still alternative road.

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• NoToLowQuality (Member) on Aug 30, 2008 at 10:55 am

  R&D huh?
  I wonder how long it takes for proton to fix it’s own power window issue.
  I believe it is fix and less problem arise for new models.
  Looking at R&D on power window and the time it took to complete, one can wonder how long it takes to R&D a fuel efficient petrol engine, and now the world is moving to hybrid or even fuel cells power engine.

  Seriously, for me, i don care if proton making money or loose money.
  Just as long as we got the best quality car from proton, all of us will be happy. No power window problem, no weird sound problem, no Gen2 door problem…

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• NoToLowQuality (Member) on Aug 30, 2008 at 11:26 am

  people got angry bcos they spend like over 50k to buy proton cars and get the worst ever quality car. the worst part is people have no choice for 50k bracket range sedan car other than proton.

  people get angry when they at PLUS toll, rather than touch n go, it becomes open, touch,close n go for proton cars with power window issue.

  Problem that as a citizen i came across for Proton’s car
  1) Power Window – My Wira all 4 window cannot work!!! even after change with PROTON Original Parts!!

  2) Gen2 door got problem and require DIY – Refer http://paultan.org/archives/2005/09/22/how-to-solve-proton-gen2-door-problem/

  3) Some Gen2 model paint job suxs… i have personally seen a Gen2 model having it’s painted orange color came off and turn into Grey color.

  4) Waja certain model gear box got problem with shifting – happen to my relative Waja where it cannot switch to next gear even after 60km/h and require some skills to make that happen. Reason from proton due to gear box switching computer chip need to change and it cost a bom to change!!

  5) Proton Salesman’s words – Recently launch Savvy with TUV certified have honk problem.. apparently i think they focus too much on the power window and the overall engine, but did not check the honk.. it fail to honk!!

  6) Certain proton Wira’s model. Inside the Wira’s top ceiling lights… the on and off is terbalik.. off is on and on is off… wtf!! tak tau baca ke? – Happen to my friend’s wira and he showed me, we all laugh!!

  Proton quality from my past sux big time… now i do not trust proton and that’s why all my friends (Working Class) change either to myvi or vios/city.

  Buy proton blood really puke out!! darn hell of a life inside a proton!!

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• NoToLowQuality (Member) on Aug 30, 2008 at 11:30 am

  If there are people mention of “give proton a chance, they are still young” and all the shit… i will say to them “give the people chance to buy a better quality car la”.

  20 years plus still require to give chance… i say no and proton must 1st prove to us they have actually changed. personally i have already decided not to buy proton from beginning until they prove me wrong on their quality!!

  lucky to have myvi where most of us are enjoying peace of mind in a decent car budget car!!

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• Roti Naan (Member) on Aug 30, 2008 at 11:40 am

  NoToLowQuality said,

  August 30, 2008 @ 10:55 am

  R&D huh?
  I wonder how long it takes for proton to fix it’s own power window issue.
  I believe it is fix and less problem arise for new models.
  Looking at R&D on power window and the time it took to complete, one can wonder how long it takes to R&D a fuel efficient petrol engine, and now the world is moving to hybrid or even fuel cells power engine.

  Seriously, for me, i don care if proton making money or loose money.
  Just as long as we got the best quality car from proton, all of us will be happy. No power window problem, no weird sound problem, no Gen2 door problem…
  —————————————————————-

  The power window problem is nothing new that the world hasn’t seen before. Power window mechanism is very common and simple. To solve the problem, one need not reinventing the wheel.

  Just make sure there is strict QC and get rid of those cronies suppliers that provided questionable quality components curently used in power windows.

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• ezralimm (Member) on Aug 30, 2008 at 3:45 pm

  Roti Naan said,August 29, 2008 @ 11:58 am

  Hey Proton (aka the “big-baby” who refuse to grow up),
  Get the Govt to end the foreign car importation and sales tax so that other cars can be sold in Malaysia without those ridiculous high price tag. Create an equal play field and healthy competition among car manufacturers.
  _______________________________________________________________

  As far as i know, the NAP is already being phased out. The current ASEAN import rate is only FIVE PERCENT.

  Current mass market models like the City and Vios are more expensive as they have arguably better trim and by the fact that Toyota and Honda probably dont want to drop their prices (or cut trim levels and goodies) too drastically as it would affect brand prestige and used car values.

  The NAP is due to be retabled again late this year. The goal is to abolish it along with the AP system by 2010.

  That really is quite reasonable. 24 years of protection (1986-2010) for a car industry is nothing spectacular or unfair. Korea’s car industry (protected for over 50 years) was protected for much longer with much harsher measures – despite having a kickstart during wartime with massive direct government cash injections.

  Imported cars in Thailand are more expensive than they are in malaysia =) Check with friends in bangkok if you dont believe.

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• bobdbilder (Member) on Aug 30, 2008 at 11:28 pm

  Three weeks ago, went to Jakarta, Indonesia, went to M Block and got a Toyota price list. If you convert to Ringgit value, the Vios E is the same price here. There is an illusion that the main price of a car is because of tax. When duties were reduced did the Vios price went down? No the price of the new Dugong went up. Why would Toyota or any leading brand reduce price? They will never reduce price. Because punters are willing to fork out the money then and they will do it now.

  The market economy is a dead ideology in Malaysia. Globalization in terms of what can be bought and sold in the global market is a pipe dream with a smaller view the longer it becomes. It will take five more years for our local man on the street to realize it when their kids read it in their history books.

  NoToLow may have grown out of the real necessity for a private transport and his needs have outgrown the target market that Proton cater for. He will eventually pay more for a better car. There is always other marques for him to choose. He may not make enough money to pay for better quality car because he could be incompetent or not effective at work. People like NoToLOw will fall by the wayside in the grand scheme of things. They become irrelevant. Many are like NoToLow. Not many people like him will realize that you need to be more effective at work/business to get more pay to get better things in life. Many people like NoToLow would see that the world, nay the universe revolves whith them in the center.

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• Max88 (Member) on Aug 31, 2008 at 7:22 am

  So Proton did a good revival job huh?

  Then, open up the car market. Reduce the local excise duty which still creep around 50-100 percent.

  Lip service and window dressing aside, govt should stop promoting national mediocrity and protecting crooks.

  A new national public holiday must be reserved for the closure day of Proton.

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• ALPINA BMW (Member) on Aug 31, 2008 at 2:11 pm

  yea, a good revival job, after 200 million has been taken from our taxpayer money for their “R&D”

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• intermilan (Member) on Sep 02, 2008 at 12:33 am

  only prolong the inevitable…. and the 21/ 22-years sufferring….

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• DC5H14 (Member) on Sep 02, 2008 at 11:36 am

  even cars in japan is still expensive..

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• ALPINA BMW (Member) on Sep 02, 2008 at 5:27 pm

  and ours is just plain crazy

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• David9988 (Member) on Sep 02, 2008 at 9:37 pm

  Proton will only gain my respect if, and only if it stands on it’s own feet.

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• ALPINA BMW (Member) on Sep 03, 2008 at 9:50 am

  but, will it ever? no….

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