ProtonProton wants to trim its 290+ dealers down to 180 dealers, but they say the consolidation process will cost RM 100 million. Last I heard Proton offered RM 300,000 per dealer, but a simple calculation shows 290 to 180 dealers for RM 100 million is nearly RM 1 million in costs per dealer in a dealer Voluntary Separation Scheme program! Nothing is finalised yet as Proton Edar is still in discussions with EON on how to consolidate their dealer nework.

Why did Proton approve applications of too many dealers and cause this over-congestion in the first place? Where is this RM 100 million coming from – Proton or taxpayer money yet again like the previous RM 10 million given by the government for the first round of dealer VSS? Proton got snubbed by dealers when it first offered RM150k per dealer because the offer was said to be too low, so this increased to RM300k.

Why should dealers that don’t meet performance expectations get a safe exit? Shouldn’t they have conducted adequate studies on their own on whether there is enough demand in the area they are opening the dealership in to sustain the operations?

Source 1, Source 2