The government cannot force Proton Holdings Bhd and Perusahaan Automobil Kedua Sdn Bhd (Perodua) to merge, although it can encourage them to forge strategic cooperation to improve the efficiency of parts procurement from vendors, Minister of International Trade and Industry Datuk Seri Mustapa Mohamed has said, according to Bernama.
Mustapa said that both companies have drawn up plans to enhance production, with Proton planning to increase exports to 50% of total production and Perodua giving comprehensive training to its staff to reduce production costs.
“There is very strong competition in the country and the local manufacturers have accepted change and are making many changes of their own, alongside improvements to enable them to compete with other brands,” the MITI minister added.
He was answering a supplementary question from Datuk Noraini Ahmad (BN-Parit Sulong) yesterday in Parliament, on the impact of the competition between Proton and Perodua, as well as from foreign carmakers. Noraini had asked earlier about the 2010 proposal to merge Proton and Perodua, to which Mustapa replied that the government could not force them to do so.
The initial proposal to merge Proton and Perodua was intended to create a more able and globally competitive unit. Mustapa had stated before in 2011 that both companies will not be forced by the government to merge.
Meanwhile, on the subject of the National Automotive Policy (NAP), the MITI minister said that the government has had lots of discussions with stakeholders.
“By year-end, it can be expected that we will have a policy that is good for enhancing the efficiency of the automotive industry. We want our companies to advance and compete from the aspect of price and quality,” he said.
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Meanwhile, on the subject of the National Automotive Policy (NAP), the MITI minister said that the government has had lots of discussions with stakeholders.
“By year-end, it can be expected that we will have a policy that is good for enhancing the efficiency of the automotive industry. We want our companies to advance and compete from the aspect of price and quality,” he said.
They forgot to fill in the extra statement *at the expense of the rakyat.
Perodua & Proton merger is against Competition act 2010. Learn from MAS and Air Asia case lah OK.
perodua is owned by toyota… proton is owned by DRB… this should be interesting…
Better keep Perodua alive but let Proton close shop lah.
why..?? coz u want to keep the stupid rebadges car..??
Because we want to save taxpayers money.if not the money keep going to those lazy cronies.
P2 will never wanted to join P1 coz inside P1 full of politic activities. on d other way, P1 should learn from P2 by focusing on marketing, get more models from partner and rebrand it to skip high tax from our lovely government!
No way! P2 is always the re-badger … Rebrand? seriously? and you were asking P1 to move backward! They have their own technology and resources.. P2 is never a national car company anyway although P1 really produce bad/lousy car. At least they are improving. They just need to keep improving! btw their 80k car did show some good results too! P2 is the one need to get more models from partner, right now only 3 !
P1 have technology and resources? …hahah…. dengar pun malu. What’s more with the person that is saying it.
You mean the subsidy from the people?
You are still living in cave. Proton is now under DRB.
Whats the different? Its still protected and subsidies & managed by people with the same mentality.
I think u r the one who still lives in a cave. DRB is a GLC therefore P1 still receives subsidy from the Gomen (or should I point out the tax payers’ aka rakyat’s money).
You seem to not know about Perodua’s modus operandi. They specifically limit their lineup to 3 cars only and focus their resources into improving those 3 cars. It is a wiser use of their limited resources since the models they choose are more practical for the Malaysian urban lifestyle (who are, in fact, the majority car buyers). Face it, their cars are a lot more refined than what Proton has to offer.
Inspira is much more refined…just because it is pricier than any perodua…
Technically, the Inspira is a Mitsubishi car tweaked by Proton. Hence, it isn’t even in the same league. Just like the Proton Satria GTi from long ago. A Mitsubishi in disguise.
Just because its from mitsu doesnt make it better. After all mitsu is the have the worst quality among all japanese car brands.
We were comparing Proton with Mitsu. You do the math. Don’t bring in off-topic things.
Really? P2 is a money making company, at everyone’s expense. I won’t be surprise P2 joining P1 if the big shots in P2 decided that this can earn them more money.
While some are relatively noble compare to the others, I’ve yet to find one car company that sell car for charity purposes.
I do not agree if Proton and Perodua combine. No local competition susah la. Everyone is forced to buy 1 less-than-50k-car.
A healthy competition from manufacturers are a WIN for user.
And if DRB takes over The management of the new JV if it happens, they will destroy P2 like they do to P1 now and will force all workers and engineers to leave. Let p2 be separate and p1 do their own to catch up. As long as a professional team runs it not appointed by DRB. Sorry but after seeing so many proton experts leaving and joining other companies, it has started to worry many people here on brain drain at p1.
There are people in the Parliament that thinks competition is bad.
I fear that once merging, Proton will stop making cars and just rebadge cars. Perodua has always rebadged cars anyway. Rather than merging with Perodua, might as well go under VW, if the end goal is rebadge an existing car.
I do support acquisition of Perodua by Proton (not other way around), but this needs more cash in the process. However, I don’t see this happening due to the current shareholders. Then Perodua can help fund Proton’s car manufacturing process.
At best I can see is sharing and localising car components.
‘Acquisition by Proton?’ If merging, it’s more like saving Proton. Only in Malaysia can a smaller company take over a larger one with political help. That’s why he has to come out with this assurance ‘will not force’.
What is there to fear if Proton stop making cars? It is not to our interest if Proton is to manufacture or re-badge cars, unless you are one of the Proton employees. Our fear should be Proton digging more money from the Gomen under the guise of ‘Research and Development Funds’ and we get the same mediocre quality cars forever and ever….
i’d like to see perodua acquire proton and then kill that brand for the good of rakyat..
From day one PROTON never actually manufactured or designed quality cars.Perodua some how did quite better with 10 times better quality than crappy proton.But ultimately both companies are ripping of the rakyats hard earned money.RM80k for a useless Proton and RM75k a low grade Perodua?
Merging will not do any improvement either.More cronies of BN & UMNO will come into play and forcing this 2 companies to buy parts from their company and the poor rakyat has to bear this.But this cronies will be on POSH,BENZ,BMW,and even BUGATI…..
Dear nande kumar.
Tired of hearing this.Proton is improving.I remember that Hyundai products (Pony) in the 80s were bad.Even the American car companies Chevrolet , Chrysler, Ford and AMC.Just stop it la.Enough is enough.
Agree that Proton is improving, from very bad to so,so.. the rate of improvement should speed up like Hyundai, since there is a vision ‘Wawasan 2020 (7 year from now)’ by our ex-ex P.M. like wise Proton must show to all Malaysians and also the World that Proton are a reputable brand worldwide.
Bro, Kumar might be exaggerating the 10x quality thing, but he has a point.
All those other car companies advances at much faster rate than Proton. Proton survives because of the protection they got here. The only car company I’d compare with Proton nowadays is the Russian’s Lada.
What company is that? Qoros car one? That’s a multinational company. Honda, Kia Hyundai, VW, Audi, BMW all are way much older than Proton.
Have you ever driven Lada?
Owh u still know to say that Hyundai last time producing bad cars…Hyundai started to make cars jz slightly earlier thn Proton, during 1990s their cars is almost same level as Proton, but pls look where are Hyundai now?…So u tell me Proton is improving? Yes improving like turtle or snails…Perodua currently is still rebadging Daihatsu cars, but their car’s quality is good…Last time Proton also rebadging Mitsubitshi cars, but the quality?…And now the so-called global car Preve, still full of problems, I knowed Proton fans will sy evry brand will hv problems, bt Preve is jz too much…Is right if Rakyat support National Car bt no point if they keep producing bad quality cars…
Ignorance at its best. Hyundai Motor Company founded in 1967. After 31 years bought/merge with Kia Motor on 1998.
Proton founded 1983. After 13 years, bought Lotus in 1996. It’s about 30 years today. Definitely a good time to merge with Perodua.
I dare you to pick any 1998 Hyundai, and compare it with Suprima S. Snail pace eh?
And Kia Motor founded in 1974. Korean motor company becomes what they are today after merging.
Perodua founded in 1992. After 21 years still rebadging.
Proton designed 1st car (waja) after 17 years. And 1st engine after 21 years.
ALL FACTS!
Hyundai, Kia Busted for Overstating Fuel Economy Claims after EPA Probe, Nov ’12 <- also facts
Most all part vendor r from people who control economy…. The vendor oni benefit people who control economy..in the expense of people of the land n people of molly..
Super stupid comes back….. And nanda kumar is not real name and he is malay!
It will be a failure.
Don’t worry, after a few years the government will
introduce another new new NAP.
Useless government. Experiment here experiment there.
No political will to open up the market completely
because of vested interest.
I’d rather prefer if Proton and Perodua tutup kedai so as to have cheaper cars for the rakyat.
I don’t think Gov will reduce Import & Excise duties even if Proton and Perodua tutup kedai. That’s 1 of the biggest revenue for Gov. Unless if Gov reduce spending somewhere else, maybe reduce petrol subsidy further to save RM7-8bil a year, then they could reduce those taxes.
Even if Proton and Perodua ‘tutup kedai’, there will be no guarantee that the prices of cars will come down.
If the Gomen is running at deficit budget and desperate, they will increase the taxes for the cars. Already you can see the prices of RON95 going up and also the taxes for the cigarettes a couple of days ago.
so, Produa? Peroton? Tondua? or Duaton?
This two will never marry, why? one is Honda friendly , one is Toyota/Daihatsu friendly
Another reason is Proton is all geared up for EV. And Toyota does not believe EV
Gear up for EV? bad strategy. Should have embark on bicycle. No power window, no cannot-install-apps-android-radio, no lower arm to break.
You are genius. You should be someone who is just going out from cave.
People who want high car prices:
1 Custom officers (if car is duty free no avenue for corruption)
2 Smugglers
3 Second hand car dealers (more profit margin,they
will offer you low price for your old car)
4 Crony manufacturers P1 and P2
5 Banks (so you have to take a bigger loan)
People who want low car prices: the rakyat
I dont want traffic jam
In some advance countries, almost everyone has a car (and cheaper than Boleh Land) and yet the traffic jams are not so ‘teruk’ like ours, go figure out why!
You’re wrong. In advanced countries, people use public transport
Their cars may be cheap, but petrol and insurance are pricey, hence making cars expensive to maintain.
Their traffic jams are not as teruk because (eg. in London, they have congestion charges which makes it expensive for people to drive into central London) of taxes, regulation, and public transport.
People in Malaysia only complain banyak, but don’t want to sacrifice. That said, it is impossible to live in this country without a car :S (shitty public transport)
Now already badly jam even cars still pricey..let say rm15k for vios..how much car it will add to road if currently annual car sales is around 600k?
Many people still using car even LRT is very near to their house n work place..alasan too crowded, im company executive maa, my skirt too short maa, im too sexy, too handsome, drop waterface maa, well lrt not stop in front of my office n house, there is sniper maa, susa mau mkn nnti maa, lenglai nnti lari maa…
Complaining people is from a race? Or it’s a just a joke?
kzm, get your mind straight, blaming heavy traffic congestion because car price is cheap is like blaming one’s parents because one is poor.
I would have taken public transport if the time needed for me to reach my work place is around equivalent to the time i spend in a car travelling there and back.
One best solution is ask potong to gulong tikar, then only rakyat boleh tkar kreta jepon/conti/korean
stop blaming others for ur shortfall…
many malaysian even drive contis while P1 & P2 still around la…
u don try to be belagak, ala gaya takla rupa. mamyak lagi rakyat bolehland masih miskin nk bli kreta
Poor Malaysian always blame the rich..’belagak’ mau pakai kereta conti..
Even Proton still alive, our car market still strong..lots of people still buying/driving conti/korea/jepon cars..all import car with no tax, think where the money goes?
Kereta mayat ko tak berminat? At the end ko mesti nak gunakannya kan? So right now ko dah boleh buat wasiat…. mati esok nak naik vellfire ke, stavic ke
If cannot afford imported car buy local meh..local also good meh, cheap to maintain summore.
OMG! No to merger.. P1 + P2 = Propero… something weird!
myb its good in term of car quality
Talk and talk and talk and talk…
Talk and talk and talk and talk…
Talk and talk and talk and talk…
Is NAP come out? Still no…
Is Proton plan to export more cars, come out? since march and then delayed to july, and now october…
Talk and talk and talk and talk…
Talk and talk and talk and talk…
Talk and talk and talk and talk…
I will maintain my current rides and will not be buying any new cars, unit i see a better policy…
What we have right now is a joke…
Stupidity is doing the same thing, over and over again but expecting different results…
Look, enough with the “close shop lah, Proton” comments. Really tired of hearing that. When will you get it into your heads that the government will never allow that to happen? It is Dr. M’s pet project. Hence, it will never go under while the current govt stands and/or while Dr. M still breathes.
From what I can see, the best way for car prices to go down would be if any of our national carmakers achieve big enough economy of scale while achieving the quality they need to compete. For the former to happen, they need rakyat’s support. But the rakyat feels cheated because the cars seem overpriced for what they offer yet there is not much they can do about it since they do not have effective economy of scale and they do not want to go bankrupt. Making a car is much more expensive than people seem to think. The cost goes beyond the price of raw materials and manufacturing and assembly processes.
Rakyat wont support Proton anymore la. They rather buy jepon/korean/conti car and pay hefty tax to the government. Stop the buying, governement got nothing. Price will drop.
The way Malaysia is, the buying won’t stop. Public transport is not very well done in certain places so as to encourage people to take public transport instead. Owning a car is also somewhat of a rite of passage to adulthood, part of the to-do list of many Malaysians who enter the workforce. It is also way more convenient and somewhat safer than relying on public transportation for getting about.
Also, you missed my point. I said national carmakers. Not Proton specifically. Perodua seems like a good choice.
Just sell Proton to VW, in long run will be good for the brand. No point to force the whole nation to buy expensive cars just to save our local automotive when it itself still need tongkat after more than 20 years. No pride in it, lets think from the practicality point of view instead of emotional. I know many will gonna batch me being unpatriotic, but what works and what doesn’t works, already proven in this 20+ year. Enough…
Other countries also have some kind of protection and grants for their local auto companies. That’s way longer than 20 years.
bla bla bla..all talk like big time business man..in fact…all just working 9-5 job with low pay..lol
bla bla bla just talk like a know-it-all. in fact, i’m working a 6-6 job. lol
Proton merge with perodua? Perodua’s quality is a joke nowadays and I don’t get it why people would still support that milo tin myvi.. Perodua doesnt build cars with passion at all!! I know proton sucks too but at least it’s miles away better than p2 esp myvi and viva.. ps: I own both myvi and persona.
At least myvi car doesn’t have the endless problems in proton car like power Window failure, fragile door hander, noisy and undurable campro engine, and others endless problems.
ya, later on some committee will say this is against the rule of competition, and force both parties to pay RM10 million again…..and where’s the money coming from? we lah!!
wow, we all got 10 million?
P1 had wasted lots of money in advance research and testing both prototype and on race track but no real improvement in terms of technology at all. By right we should be manufacturing EEV like the Exora tested in UK. Where the hells is that EEV?
What the…..
Just merge already….
P1 quality sucks…and we know that….
P2 is control by the Japs….
Merging will saves both companies and good for long run.
Just not sure what it will benefits to the buyers.
Don’t allow merger. Once merged perodua car quality will deteriorate. Perodua will inherit proton’s diseased eg. Low quality car, corruption etc. Then malaysian will not be able to enjoy better quality car at cheaper cost.
hate too see people say prton is global brand coz it nowhere highly rated in local… only those who can only afford proton said that
Proton should just close shop and let the market force decide the auto industry in Malaysia.
Instead of becoming car manufacturer, Proton should convert to political party since Proton is so good at it.