Proton and the Malaysian Automotive Institute (MAI) today signed a memorandum of understanding (MoU) to further optimise shared resources to be used in developing Proton’s parts and components suppliers to ensure the vendors meet global standards.
The MoU signifies a collaboration between the government (represented by MAI) and the private sector (Proton) in enhancing the competitiveness of the national carmaker’s value chain. It will pool resources to maximise the utilisation of existing automotive development infrastructure – particularly in the areas of advanced design applications, digital process simulation and improved validation technology.
“Upstream automotive activities – the design thinking, engineering applications and validation technology – are key towards any meaningful participation within the automotive industry, especially as we are moving fast towards the fourth industrial revolution,” said MAI CEO Datuk Madani Sahari.
“The MoU today has a significance beyond capacity building. It’s a new way forward towards a change of culture and mindset for the entire automotive value chain. Businesses must reinvent strategies to keep themselves competitive and relevant,” he added. The government has allocated RM4 million to this initiative, and Proton will match that figure, Madani revealed.
Besides the MoU signing, 30 local Proton suppliers and the carmaker today signed a “Performance Excellence Pledge”. Basically, the vendors pledged to deliver goods in a timely manner, and at the right cost, while upgrading their capabilities to global standards. On Proton’s part, it promised to collaborate and assist the suppliers – besides giving them business, of course.
The suppliers, which will provide parts for the Proton X70 SUV, will undergo a specific development programme for them to achieve Geely’s global standards, which will then enable them to export parts. From Proton’s perspective, the vendors need to level up. “The level of technology in our new products are higher, and the suppliers need to upgrade. To get into Geely’s group of suppliers, they must first upgrade,” said Proton deputy CEO Datuk Radzaif Mohamed.
In his address, Proton CEO Dr Li Chunrong highlighted capacity as the main hurdle for its vendors, and that there are bottlenecks in the supply chain. He promised assistance in the form of overseas experts at no cost to the suppliers. The Proton chief also urged suppliers to reinvest profits into improving technical capabilities.
While he emphasised on quality, it should not just show in the products. “Quality is life, quality is work culture and work ethic,” he said, adding that quality must be balanced with cost to ensure sustainability.
“We are family, we (supply chain) are all together. If not, we can’t compete with other OEMs,” he said, explaining that Proton is not competing against other brands one-on-one, but as part of a group (Geely) against other automotive alliances.
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Proton never learn their lesson. Proton failed big time solely because of their vendors and suppliers cheating Proton with super low quality parts and super high prices.
Proton in itself was a great car that was heading in the right direction until the vendors and suppliers screwed it up
Now history repeats again. Li Chunrong should source the parts for the nbew Proton from China and directly from Geely vendors.
The Vendors and Suppliers MAI are using are the same ones that bankrupt Proton in the first place.
Support local, wait for Proton X70 CKD w local parts.
Dont buy CBU China made yet
Support local ? What is local about this “Proton” … Even if it’s “CKD” … this local vendor program is all part of an elaborate show …a show for Miti and Tun in their well planned effort to keep receiving Govt Grant and tax incentives .. I bet they will get it … as they fooled you
i guess Dr Li dont care about your ignorance of current situation, so your speculation can go down the toilet along with your brain..
so sad to see youre still trapped in a time warp, while evryone else is in 2018….
Do u know how chameleon s operate?They keep adapting…better open shop to sell permaidani to Arabs..his name sounds like carpet….
30 years ago also all the same vendors and suppliers signed a MOU Performance Excellence Pledge
Now 30 years later, the same vendors are signing another Performance Excellence pledge.
I hope Li Chunrong wakes up and realises that these were the same vendors supplying Proton with low quality parts the past 30 yrs
Most of those vendor is also p2 vendor. Fyi
30 companies supplying 10% just to please Tun ?
All 30 local companies supplying the same part … The badge
Only the emblem and decal, car mat, seat fabric, window glass and windshield, alloy wheel and exhaust piping.
29 to hold the badge …1 to apply glue
“Share resourcess in vender dev…”
Mintak share development cost dengan gov lah tu.
If this sold to China company still can ask money from the gov, imagine what the third auto company can ask from the gov.
These vendors had the cheek to ask Geely China vendors for the Boyue/X70 mould as they can’t be bothered to invest in one.
What Geely China vendors should do is go to these vendor local competitors & JV with them. Competition is healthy & should teach these current vendors that nothing comes free & easily. This way the quality standard improves & pricing becomes competitive.
Based on history p1 has failed to deliver result. That make vendor skeptical to invest. The same vendor has no prob invest for p2.
Many of them signees r 1st tier vendors. Gud job! Those 3rd vendors thats in P1 becoz of a certain someone r alredi moving to Perotiga. Excellent! Excellent! Excellent!
why is MAI involved anyway? hmm something fishy