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Friday, July 08, 2005

Proton and Their Problems

Gone are the days when Proton cars charted the top 60% (or more) of the private vehicle market share in Malaysia. I am not surprised at all not just because of recent surge of locally assembled cars like Naza and Honda that has succeeded in penetrating the midrange car market. Especially those priced between RM 60K-90K but more to blame was the quality of the newer model of Proton cars....simply appalling.

I have heard enough of bitching and cursing amongst the new Proton car owners and regrets is often understatement.

The shield and protection has gradually vanishes following the retirement of one of our great leaders. It is time to really go through the acid test of competition with car manufacturer of its class. Forget about AFTA which is probably a joke as the net effect on imported car's prices is simply not exhilarating at all.

So, what can really go wrong with Proton? Nothing, really... except for the management of the national car company which is probably a bunch of monkeys putting on their thinking cap trying to entice the investors and board with unrealistic profit forecast and revenue projection.

It is pure common sense that if you cannot increase the car sales or boast the market share globally, the only alternative is to cut cost of production. They can't slash their employees either otherwise there will be too many unemployed "certain race" and that will definitely tipped over the scale of New Economic Policy that require extension to achieve the original objective.

That leaves the quality of the car parts and production costs. Right, now we are talking... why not source the supplier within (locally) and get Ah Beng and Ahmad to supply the plastic car parts made of recycled materials. And don't forget Muthusamy for the scrap metals for the body. There...all sorted...we can cut to cost by as much as 50%....says one executive.

Hmmmm....that make perfect sense, says the boss and let's do it! All we need is some really fancy design ... design that will fool all the buyers whom will only find out about the Milo tin or Coke's can when they accidentally scratch their car in an accident.

Savvy could be another story ... the body may well be made of recycled old proton that has been in the yard for way too long but no takers.

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