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Oh dear. New CEO does not sound confident in handling the job with his "businessman second" remark. To get Proton back on track, you need a sado-masochist. A general from the Israel Army. Toughened up in the school of hard knocks.Stop production of Iswara and Waja for heavens sake. It is taking sales away from savvy and Gen-2 models. Proton must be the only manufacturer whereby its models competes amongst itself. Then with increase in volume, unit cost of savvy and gen-2 will in theory, come down. Share platforms. These are basic knowledge which TM did not comprehend.

sorry. It suppose to be stop production of Wira.

"We cannot be in a state of denial that we are producing quality cars, because the fact is we are not," he says. "We need to be brave enough to accept that. We have to face reality. We must no longer behave like the national car. We cannot behave like we will be protected forever."

-- Super Syed

Now, this is a mark of a respectable CEO. TM was totally the opposite. He was SO arrogant about Proton, called internet as rubbish, and refuse to acknowledge Proton's quality problems, saying it's all rumours.

He was more concern about foreign cars being imported, without analyzing if it was AP cars or Perodua, which was eating up his pie!

I really want to see proton through this tough times, but Syed has to exert more power! and mvoe 10x faster then TM!

JEFF OOI says: Let's look beyond personality as this can be argued till the cows come home and we won't get out of the quagmire of the national car project. Instead, let's focus on the key business strategy and turn-around approach for Proton. The context is: Proton is nazak. Should we be "business" first, "Malaysia" later, or the other way round, in order to resuscitate the national car project?

sydput, taking away Wira and Iswara? ROFL. You MUST be joking. Those are CASH COW for proton.
As Savvy is not using in house engine, I don't see a reason why Savvy cost will come down.

BTW, Malaysia population growth is slowing down. Since Proton fail make an unique car that standout in the international market, the population growth is just not enough.

Even without AP import car, it just delay the problem.

How to solve the 500,000 jobs associate to Proton? I can give 101 solutions, but as long as Proton refuse to admit their problem, nothing will be done.

Yes agree with goks.

Please stop airing Mahaleel's view, like it or not! He was part of the Proton's problem, and at this point he should admit that it was his previous fault blah blah - amazingly this was never asked in this blog. Amazing & fascinating..

JEFF OOI says: You seem to regard TM as a dead horse but you, ironically, keep flogging the dead horse. To date, you have even made an iota of constructive suggestion/criticism to improve Proton's business quagmire. You just rant, grunt, groan and drool. I am going to annoy you by mentioning about TM's post-termination opinions. He, at least, has been there and done that. And let the man say his piece, as he is entitled to his two sen's worth, just like you, who just continue to rant, grunt, groan and drool.

Jeff,

Yes it is true that Proton is nazak right now, and this has to be the priority. And yes, let the past be past but please do a favor, do not put Tengku Mahaleel in such a positive light.

JEFF OOI says: You seem to regard TM as a dead horse but you, ironically, keep flogging the dead horse. To date, you have even made an iota of constructive suggestion/criticism to improve Proton's business quagmire. You just rant, grunt, groan and drool. I am going to annoy you by mentioning about TM's post-termination opinions. He, at least, has been there and done that. And let the man say his piece, as he is entitled to his two sen's worth, just like you, who just continue to rant, grunt, groan and drool.

Proton is all Mahathir, Mitsubishi, Nadzmi Salleh, Tengku Mahaleel and Azlan Hashim and then some... all combined. You have singled out just two. You are deficient in thoughts.

Jeff,

We should and must be Business first, Malaysia 2nd. However, the emotions that run through the politicle circle will not allow this to happen!

JEFF OOI says: So you think, if FORTUNE reports accurately, the present Proton CERO may have hisbusiness orientation wrong?

How can you run Proton like a business, when some really less intelligent soul shouts HIDUP Proton, when Rafidah asks proton to buck up, in the last Umno GE!

The problem in Malaysia is the close interlink between Politics and business.Not that it is wrong. In Singapore, almost the entire economy is controlled by ppl closely associated/related to the rulers. But they deliver.

In Malaysia, due to our lopsided policy in not always wanting to put the best where it's required, we're left with cleaning up the mess! No guesses to who created this monster problem!

Untill we can get rid of racial based preference, not merit based preference, we will be far from progress!

Syed can begin by looking at the vendor system which is plagued by corruption. Secondly, with Proton's emphasis on "cost down", surely it will result in sub-standard parts making a sub-standard car. Remember "rubbish in, rubbish out?"

JEFF OOI says: I suggest someone start looking into the untouchables in Proton vendor network -- even TM can't touch them, I believe: Delloyd Auto Parts (M) Sdn Bhd (124230-K). Any clue on the failed power windows and central locking system?

URL: www.delloyd.com/products.htm

I was working for a Proton vendor in the past. A certain Japanese supplier could not supply direct to Proton because it did not fulfill its Bumiputra ownership requirement. As a result, the Japanese had to sell to Proton through a Bumiputra firm. Doesn't that make Proton less competitive? And the Bumi firm gets a commission just by order processing. Even the goods are sent directly from the Japanese firm to Proton.

wow,

http://www.delloyd.com/director.htm

2 big guns sitting on the board ..Siti Hasmah's brother ...also previosly questioned on the running of SUKOM 98 ...and the other is Najib's brother :)

now ...Jeff,
Syed seems to have absorbed into the system ....like what TM did mention before ..which i cant blame TM for.

I think Proton should be releived off sourcing from specific vendors and should be allowed to source freely!

awkw,

What you mentioned above about preferential manner of business if the reason why malaysia is NOT in par with our neighbour in terms of business success!

BUT ...try setting the record straight with UMNO and the likes of KMU!!!!

There is very little room in this country to grow, unless the mentality of those receiving special treatment changes!

proton will continue to bleed to death..if it cannot stop the festering rot from within..such as preferred suppliers which proton mgmt can't move / delete as their suppliers , without upsetting the people in UMNO. That is the whole problem. Until the management can run proton like a business and not like a welfare society..it will just go nowhere but down.

Doesn't look like the new team got the b*lls to do it.

From hearsay, some of the auction house stockyards have cars which are not even registered due to the dealer's inability to service the finance loan resulting their new cars being repossessed. The auto industry as a whole and not only Proton is facing disaster time.

Carlos Ghosn could turn around Nissan because he was given a free hand. He could transform Nissan into the most profitable carmaker in the world today because he had a vision and the guts to carry it through. From Syed's statements, he doesn't have any of the above.

There are just too many sacred cows to protect. Thats the same reason GM failed in the US. They had a huge disadvantage compared to Toyota. Be it the huge number of retirees that GM has to feed or the huge healthcare bill, GM just couldnt free itself from these burdens that shackled it.

I'm reposting my entry from a previous thread:

AFTA was signed in 1993 and intended to be implemented in 2003. This means Proton had 10 (12 actually because M'sia lobbied and obtained additional 2 years exemption for it's automotive industry) years to prepare for competition. In these 10 years Proton's response was Waja and the Gen.2. The Gen 2 car project, labelled as the Wira replacement, was only started in the year 2000.
You can judge for yourself if this was a successful model, considering that variants of the Wira are still being sold 2 years after it's replacement was launched. Also take into account that you can drive a Gen 2 out of the dealers lot in the UK for 1 pound.
AFTA wasn't forced down Proton's throat overnight. They had more than 10 years to equip them selves, develop competitive models, cut-costs and build up a successful regional brand name. Unfortunately, someone sat on their arse too long expecting that bariers will continue to be in place post-AFTA. This is why Proton finds itself in the situation it is now. Only some painful decisions will be able to save it now, include serious re-organization efforts and possibly lay-offs and plant shut-downs. The questions is, does it have the guts to do the right thing? The clock is ticking...

May I remind everyone here that Tunku Mahaleel was removed not just because he challenged the AP abuse and the tax evasion of our car importers, but because:

1 - He began implementing the Quality Assurance program with VW's assistance that began challenging the under-performing vendors.

2 - He declared his intention to dismiss under-performing vendors that are not able to or refuse to improve their PQ standards. This got the UMNO and MITI officer etc-linked vendors worried.

3 - He asked the government to remove Proton's protection as a trade-off for addressing the AP issue. This of course was the final thing that resulted in his sacking as the AP issuers and vendors wanted to keep APs alive and the government couldn't afford to give up taxes from imported cars!

So, why are you all angry and Tunku Mahaleel anyway, he was sacked for asking for the things many are asking for now!!

Some unashamed pluging here Jeff if you don't mind:

http://thoughtsintangents.blogspot.com/2006/06/lets-be-clear-of-some-real-grouses-we.html

http://thoughtsintangents.blogspot.com/

Jeff says you shouldn't flog a dead horse. True. Proton is a dying horse with its system totally and gradually infused with toxins over the years. Many years ago, before AFTA, the horse breeders knew this and they put it on life support. The animal is now totally dependent on it as its vital organs have all but stopped functioning. Nothing short of a blood transfusion will help ... but there are social and political taboos against such an intervention. So unless there is a change in the belief system and the courage to do the unthinkable (for example bringing in a Ghosn with the power to execute) this horse will slowly die leaving behind a terrible stench which will plague us for years to come.

JEFF OOI says: "Unless there is a changein thebelief system..." Not another round of rhetorics.

Exactly Jeff. Not motherhood statements, slogans and chest thumping cheerleading by third world politicos but a fundamental change in the way you think and act.

JEFF OOI says: I was joking with you.The Putrajaya and Shah Alam guiys are most probably no better than us Joe Public lah. Ask the MPs, that might be worse! You will surely puke.

But since that is as likely a possibility as us qualifying for the next World Cup, I am afraid, this horse will die a slow and painful death.

Maybe an objective post- mortem will help us learn some lessons about what NOT to do when rushing towards "developed nation status" - and perhaps that is what this series of interviews will lead up to.

on comments on the savvy engine,Proton could have engineered a Campro 1.3 or even a 1.2 into the savvy.It wouldn't cost that much as they have a Campro 1.6. I still cannot understand why they inserted a Renault engine into a savvy. Protn cannot be managed like a government agency. The Bumi policy will have to be dealt with. I have this feeling that it is naza that is dictating Miti on NAP. That is why he benefitted the most from NAP. Better check who the new owners of Agusta. I wouldn't be surprise if it is naza.

Hi Jeff

I “tabik” askw for his comment.

I also “tabik” you for your comment:

JEFF OOI says: I suggest someone start looking into the untouchables in Proton vendor network -- even TM can't touch them

Sometimes I feel really sick reading the unintelligent and undignified Proton bashing and TM bashing. I’m not against the bashing; I’m against the brainless way it is done.

This anti Proton bloc should be grateful to Jeff Ooi for giving them a voice here.

A M Ubaidah S

The anti TM gang gives me the impression & suspicion that they have ulterior motives.

They may be connected to the “untouchable vendors” or the “MV Agusta wayang kulit”.

Back to 1995, accompanying my friend went to interview for cost down job at proton. It lasted about 2 hours, argueying with proton guys who cannot accepted the fact that japanese manufacturer can authorized 3 years experience engineer to go down doing cost down with vendors. Their concept of cost down is doing anything except touching vendor...ANYTHING EXCEPT TOUCHING VENDOR, so how? whereare most of the problematic item comes from vendor.

Dont ask me who is the vendor, only idiot didnt know where the chain of easy money end up