By now, it’s a known fact that Proton ditched Volkswagen (VW) and General Motors (GM) as Second Finance Minister Nor Mohamed Yakcop said Proton’s business plan has been "very, very real".
Apparently, the taxpayers do not know how real it’s, besides the fact that Proton’s latest model Persona is doing well with an average selling of 3,500 units a month and a record 22,000 bookings for the model since it was launched in August.
Now, the thing is this. A day after the no deal announcement, Nor Mohamed said no specific timeframe will be given to the management of Proton to turn the national carmaker around, whereas the Prime Minister Abdullah Ahmad Badawi said Proton is doing well and should be given a second chance, even when the shares in Proton sank to a new seven-year low?
I can’t remember any non-GLCs in Malaysia where no timeframe is set when comes to a turnaround and restructuring. Even when Idris Jala joined Malaysia Airlines during it’s turbulence period, he was tasked to bring MAS back to its glory day within a specific deadline.
Next, I can’t remember how many chances given to Proton for the past few years and based on the latest small lift, on what basic the PM cum Finance Minister concludes that Proton is successful?
The fact is, the market outlook for Proton is visibly disappointing. To establish oneself in a global scale, one would need strong sales numbers and economies of scale to cushion the fierce price war. Proton does not even have this at home, let alone overseas. It still needs the network and very strong brand name to catapult itself in the overseas market.
Having said that, after years of discussions, Proton is still bold enough to ditch VW and GM, feeling confident that its turnaround plans would revive the company, even when the so-called business turnaround plan is not in place yet?
Despite all the feel good factors, I remember there is a say, it’s better to keep your mouth shut and appear stupid than to open it and remove all doubt?
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there’s is so much credibility in the finance ministry. one lost billions on behalf of the citizens of malaysia thru dabbling ( or gambling) in the currency market. the other promised a freer society and more democratic space by throwing the ISA on three promoters from Hindraf.
the only real real thing about proton is a matter of time before it goes running to the government for assistance. and that literally losing its pants. it doesnt need a genius to see thru the hopelessness in proton; no technology and no economies of scale and this spelled trouble for any car maker.
Funny, Iran currently impose oil rationing, and no mainstream media dare to mentioned it (or knew about it).
For automobile industry, a break even is just to cover the cost. The manufacturer must find alternate supplier to offer cost advantage and meet the quality demand, the SCM (Supply chain management) rules there. And cash reserved must meet a long term R&D and market shock/risk.
For Proton, besides multiples millions spend on ERP (enterprise resource planning), it show they have no idea what the ERP system will help them. Worst, they are yet to setup a SCM system.
The automobile industry are now one the most complex manufacture system in the world. But Proton are not ready to take up the challenge. Proton still can hide the picture using all sort of dodging maneuver. But AFTA is not something Proton can dodge easily.
I can’t understand why Proton refuses to keel over and just die. It would certainly save us tax payers a lot of money as with this lack of a timeframe for turnover, we’re obviously going to be funding it. Proton’s Mounting Woes…"