BN MPs briefed on Proton

The issue of Proton, its poor track record these past 2-3 years and the affect from the recently announced National Automotive Policy (NAP) still lurks in anyone’s and everyone’s mind, ever so often. The public comprehensive understanding on the issue is relatively low. So, sometime this week, the BN ‘Back Benchers’ Members of Parliament will be specially briefed by Proton by its executives and Khazanah Holding’s.

This is a very good move to enrich the lawmakers representing the rakyat with salient information. But what if the information fed is not actually ‘good’ information? Are they able to tell the difference between accurate and doctored information presented?

Unfortunately, that will be the case in the briefing session. The 60 page report prepared for this briefing session has been “censored” by Khazanah Holding executives and ‘The Fourth Floor Boys’.

It is expected part of the report will contain information about the on going negotiations with automobile giant Volkswagen AG (VW) of Germany. VW has been said to be interested to have minimum controlling shares of Proton (50% + 1 share) in the Proton City Tanjung Malim massive industrial complex and all Proton technology based companies. This means that VW will have the say to determine how many cars with the “Proton” label is allowed to be produced.

The control of Proton’s technology will also mean that VW be able to shortened Proton’s strategic reach, of which will affect and inhibit a lot of local engineers and automotive talents.

The “cheap sale” to VW (the Proton City is being force valued at RM seven billion) can be seen as neutering a “tiger” (the Proton label). Common business acumens should naturally value Proton with some premium, especially Proton did build the assets completely on internal funding and Proton’s impressive track record until the management change over in 2005.

The Proton Chairman Dato’ Azlan Hashim has been described as “afraid” to face the public, such as the MPs. A ’special function vehicle’ (SPV) is expected to be used for the purpose of this “car boot sale”, a common move when assets are being disposed or a popular buzz word of the season, ‘unbundling’.

proton-results.jpg

Proton’s current cash position is something left to be desired. When cocky former CEO Tengku Tan Sri Mahaleel Arief was made to leave Proton a little over two years ago, Proton was cash rich and profitability was still in desirable range. However the situation much different now. Sales nowadays is actually more than half what it was five years ago. Sources within revealed that Proton failed to pay its vendors since December 2006, even though three separate audit were carried out. Of course it is a known fact that few Proton models were ready to be launched were delayed, for unclear reasons.

It looks like what former Prime Minister Tun Dr. Mahathir Mohamad envisaged about Proton’s destruction will come true after all. Those people who wanted to see Proton be run to the ground will eventually get their wishes. An ambitious industrial vision to strategically place Malaysians with high end mechanics, technology and practical engineering abilities and competencies finally coming to a bitter and painfully sad end.

So the very people representing the rakyat will then be fed with ‘doctored’ information and they will continuously be insulated from the real and significant information. Mistakes and poor industrial decisions will be conveniently justified. Especially technical details involving the mechanics of Proton’s operations, track record and growth projections.

And so shall most of us, the rakyat!

Published in:  on June 25, 2007 at 10:16 am Comments (13)

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  1. saya di london awal 90an, amat bangga sekali melihat proton di jalanraya dan lebuhraya orang putih yang pernah jadi penjajah kita. rasanya itulah bahan bukti yang kita tidak langsung mengharapkan mereka.

    sekarang ni, apa dah jadi? saya pun tak tahu nak kata .. pada suatu ketika, saya begitu konfiden yang kita bakal menjadi kuasa besar dalam industri otomotif asia, selepas jepun dan korea. tak sangka negara china sekarang melangkah lebih jauh; india dan taiwan pun udah lebih matang industri mereka.

    proton jadi tuan pada lotus dan pada hasqvarna dan juga mv agusta. agusta itu bak rolls roye dunia motosikal. lotus pulak memang terkenal di seluruh dunia atas sebab kekuatan teknologi membuat enjin kereta yang super-laju.

    hari ini, terbongkan proton. duit dah tak ada, kereta tak boleh jual, pekerja mahirnya ramai yang dah berhenti.

    siapa yang bunuh proton. sila cari.

  2. this is definitely the defining moment of what greatness and being Malaysian is all about.

    bragging about the numbers (like NST front paged 1 trillion and FDI thing) is just a symbol of stupidity, and also point directly to the lack of our integrity and accountability.

    there is a saying: we dont know what we have, until it goes away.

    before we got a general who possibly steer us to greatness, a great thinker, and at the same time insist there is no one greater than the country itself.

    but, I understand, seriously..that it is not easy to replace a legend, plus he is not dead just yet.

    but I can’t understand why it is soo bad (of the successor doings)

  3. Expected. You can smell the shit coming since year 2005.

    In Japan if a big organization fails miserably, the CEO, MD`s , Directors etc will commit Harakiri. Jump from the building, sleep on the LRT track, drink Sake lace with chloroc added with lemon…etc.

    Here in Proton Boleh Company…if the company fails, blame it to the rakyat for not supporting them.

    Not only these bunch of fat ass jokers do not want to resign, they got the cheek to ask for more benefits!

    Top heavy management. Almost half of the team are executive level, managing via confortable armchair.
    Lot`s of directors position. Everyone is aimimg for a director position. Talk cock & sing song.

    Meeting, meeting and more meeting. If you dont find them at the meeting table, you`ll find them golfing. Don`t even know what is happening at the line. Don`t give a damn shit about the market situation. Not even prepared to face reality. Too protected. Living in their own nutshell.

    Vendors are the scape-goat. Vendors are the bully boys. Blame it to the vendors when everything fail.

    TM can be cocky but he is not contesting a popularity contest! As long as the company is not in red let it be.

    Perhaps all directors & senior management should do the honorable execution…RESIGN. ACA should be place at Proton permanently in all divisions. Some smells rat. Smelly fat rat.

    Get fresh blood to run the show. Present bunch is a laughing stock! Shame on you. ha ha ha

    :-)

  4. 10Q PM AAB, is there anything else for cheap sale…

  5. [...] BN MPs briefed on Proton The issue of Proton, its poor track record these past 2-3 years and the affect from the recently announced National […] [...]

  6. Tell u my story. Bought 1st Proton on 96′. Acceptable quality, now gave it to my in-law. All still working accept start to rust on the outer shell after 7-8 year of usage. Bought 2nd Proton 00′, window not working after 1st year, squeky sound all over, can’t be fixed after many visits to SC. Almost want to buy Gen-2 in 05′ but lucky did not commit after feedback fr friends & colleague of many issue they encountered. This year bought Myvi, so much happy with it. No issue at all.
    Personally, the Proton issues today is the result of years of bad management of yesteryear. Not the current management taking over from T M. Now the rakyat simply don’t trust Proton anymore, like me.


    A very shallow and self centred analysis about Proton. As they say, “simple things pleases simple minds”.

  7. Ah-Ba,

    I use to drive a satria back in year 2001, no complaint at all until i sold it off.
    Bought a Gen-2 for my wife a year plus ago. Same no problem until today.

    So based on your writing, i guess my satria and gen2 must have come from a different management eh?

  8. I would say quality is deteriorated over the years. Most average Joe just want a car that work and don’t want to spend time sending it to SC numerous time. The power window thing is really show it all. TM came on board said want to do something after seeing people open door to pay toll on Wira. But same problem persisted in Waja as well.
    To a simple mind like me or most rakyat, buying Proton is no longer a better option since we have more choices these day.
    I am not saying Proton is bad, but as long the quality thing not improve, more people will not buy Proton and that is a fact. The number of new Proton sold compare to new Perodua tell it all.

    What you’ve just described is herd mentality thinking the grass is greener on the other side. Same mentality anything imported is better than local made ones. People like this feel “sophisticated” as they are able to make ‘choices’, which include anything remotely differentiate themselves from their next neighbour or the guy at the next desk.

    Again, small things pleases small minds.

  9. I have been using a proton wira for many years now. As a matter of fact, it is my only car and have been with me since i was single and now married with one kid. I do admit there are some minor problems with the car but I also believe that other cars have the same problem as well. Can anyone guarantee that any KIA or Honda have no problems at all, even minor problems? I don’t think so. That’s why you have manufacturer’s warranty.

    Overall the my wira is great. Even the boot is among the biggest, two 26″ luggage (for haji) fit well inside it plus some more smaller bags. The back seat is also wide enough to fit 4 slim guys (around 40 to 50 kilos), or probably 2 “big guys”.

    The problem with our people is the “inferior mentality”. We still belive that anything done locally has low quality. Sometimes, we are going after the brand name just for showing off.

    Tuan,

    I totally agree with you. This is the herd mentality I was talking about. They simply want to look different from the masses, so that is why the look into all these sort petty issues.

    I hv seen a friend’s Kia Carnival caught fire whilst regular driving within Klang Valley (with 4 kids inside). When sent back to Kia (apparently just 2 months after warranty period over), it seems that is not the first case the MPV burst into flames whilst being used. Millions of Proton used by Malaysians in the toughest conditions and subjected to the most unforgiving tests and yet we don’t here Proton cars burst into flames whilst on a Sunday drive with kids!

  10. If u read what I wrote carefully, I said I’ve chosen Myvi over GEN2. In case u still don’t know, Myvi is Made In Malaysia. So I did not want to be diff fr the masses
    U think Proton power window is a petty issue. It has became big joke through out our auto industry/forum
    I even seen a New Merc S series caught fire on Pg bridge before. Thats why I still stick to M’sia car knowing imported car means paying extra tax to gov.
    I am surprise you hv never heard of GEN2 caught fire before, go ask around or if you want I can send you a picture of it.

    <em>MyVi is ASSEMBLED in Malaysia. <strong>Proton Gen 2 is MADE in Malaysia</strong>. Unlike MyVi, most Gen 2 components, including the engine block are locally made in local plants and designed by local talents. There is a clear distinction between locally ASSEMBLED and locally MADE!

    BTW, Proton Gen 2 received a very high rating score by BBC Top Gear’s Jeremy Clark. I saw the episode on BBC. Only idiots will buy imported but locally assembled cars liek MyVi and proudly announced its “Malaysian made”!

    As said before, small things pleases small minds. Not too much can be expected from small minds, really!
    </em>

  11. Factors that we will recognized if we see a good car…

    1. Sales Volume.
    2. After sales 2nd Hand Market.
    3. Reliability
    4. Spare Parts cost.

    If You add all this rating ( 1-5 ) each 1 Poor – 5 Execellent )

    You may have some idea about the car.

    Good Luck.

  12. Remember 9th July 1985?
    Today, we see Proton Saga running their guts out for the last 22 solid years. Those few thousands units made in early July 1985 still running faithfully and cost only less then RM18k.

    Did those fat ass jokers at the Centre of Expensiveness (So bloody proud…COE )got any clues what is 9th July is all about to the country?

    The begining of the end…!

    Fully agreed. Even Tun Dr. Mahathir Mohamad said it himself that those who really want to see
    Proton failed and destroyed will get their wish soon

  13. [...] time to do just that: sell off the national car to VW. [Tables taken from bigdogdotcom, who alludes here to a 60-page brief for the backbenchers].p.s. And how to sell AirAsia. Screenshots has the story [...]


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