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The question is still what are we going to do with Proton? The rot is not just at the top. Keep coming up with cars like Tiara and Savvy and we dun hav to do anything. The invisible hand will bungkus it.

Are Proton "doing The right thing" compare to TNB and MAS? IMHO, I don't understand why everyone keep talking about Proton "costly parts". All proton car parts are known to be OVERPRICED compare to acceptable market price and quality.

On the other hand, Proton still rely on internal market for its overpriced car. Since there is no such thing as "Hollywood" overnight success in car industry. So new model is the priority of Proton, but sales generate from low interest hire purchased offer.

proton's CEO is not tough enough. The chairman could eat him for breakfast.
sell Tg Malim plant and proton brand to GM and Perdana brand and Shah Alam plant to VW. Both these companies have no need to continue bilding proton designed cars, which could be sold to locals Naza/DRB/tan chong who have their own assembly plants.

Vehicle sales in Malaysia, the largest passenger car market in Southeast Asia, fell 15% in January, as higher lending rates and lower consumer confidence deterred buyers, the Malaysian Automotive Association said on Feb. 21.

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note these words: LOWER CONSUMER CONFIDENCE.

car sales? a whopping 15% fall compared a year ago!

coming to the stock market, the warning was sounded on Monday. The US Commerce Department said durable good orders fell 7.8% in January against the expected 3%!! Then Alan Greenspan in a business conference at Hong Kong warned that the US could be slipping into a recession this year.

and oh, btw, car is one of the items in durable goods!

also, in Malaysia, it was reported that "Taking a cautious stand, the national plants scaled back their output and produced less vehicles -- about half what they rolled out in January 2006"

wah... even our national car plants also felt cautious leh....

now.... feel good about the spin on the feel good factor! since Badawi had mentioned tht KLSE could make a new record high, maybe idiot punters who got hit this time should sue him and claim for damages in losses suffered! hahaha

There's an important unstated issue with Proton's excuse of "higher component costs". PROTON is facing higher component costs, not the entire car manufacturing industry. Higher metal and fuel prices last year had an impact last year on everyone in the industry. But most car manufacturers, especially the global ones, have been aggresively managing their purchase cost base, squeezing savings from their suppliers and internal operations. Component manufacturers who cannot generate cost savings have lost market share, and in some cases closed shop.
Yes, its a cruel world out there.
Proton, especially its principal shareholder, the Malaysian Government, really has to make up its mind whether it is primarily a car manufacturer or a socio-political vehicle. Many of Proton's component purchasing and operational decisions are made using its "socio-political" hat, basically to support the NEP, and they are sub-optimal in terms of economics.
I won't go into the merits or otherwise of the policy here, just that, there is No Such Thing as a Free Lunch. If Proton wants to be a socio-political vehicle, then it can't complaint too much about losses. If it wants to be a successful car maker, some very hard decisions are needed.

Jay Kay, "I'm going deeper underground..."

I think what he means is that he can't do what Proton CEOs in the 80s and early 90s used to do. When Proton needs higher profits, they just increase the price of the cars or add on more "optional" accessories.

Proton is a national car projects ideas from Dr M. Its very sad to see from a profit making company with billion of cash can easily losing thier market share and also Malaysian trust, just in few years time.

Its the time for Proton to do a major restructing, sell of non profit subsidiary, enhance thier vendor, product & service quality & also choose the top management who knows how to do bussiness, instead of looking for financial numbers & analysis.

On the same time, we Malaysian, have to be more partriotic (like korean), give Proton a second chance & pls do not downgrade our own product. This is our product, our industry & we have to do something to turn Proton back into normal. Its was easy to put the blame to others.

its in everyone's best interest if it closed down or disposed off.

Even big guns like Nissan, Mitsubishi, rover.....etc find it tough to compete in this competitive market. Dont let the folly of one man be the burden for generations to come.

With Proton track record of quality, delivery, new model, anything really, its in everyone best interest if they fold....and fold fast or disposed off.

Hopefully this way we may revive our automotive industry (or whatever thats left of it) which we already lose big time to Thailand.

Folks

What a contrast between Proton and MAS.

Under the CEO-ship of Idris Jala, who came from a multinational experience, MAS had a very impressive turn around.

Under the CEO-ship of DATUK Syed Zainal Abidin Syed Mohamed Tahir, PROTON is still suffering from LOSSES.

Compare the two CEOs.

1. Idris (MAS) was appointed CEO of MAS in December 2005. Syed Zainal Abidin (PROTON) was appointed in December 2005

2. Both about the same age, in mid to late 40s.

3.Both are graduates.

4.Idris (MAS) graduated in 1982 from University Sains Malaysia with a Bachelor Degree (Hons) (B.Soc Sc) in Development Studies/Management. Idris went on to get a Masters in Industrial Relations from University of Warwick, United Kingdom in 1986.Syed Zainal Abidin (PROTON) graduated in 1983 from the University of Maryland, USA with a Bachelor of Science in Civil Engineering .

4. Both came from the oil and gas industry, Idris (MAS) through SHELL and Syed Zainal Abidin from PETRONAS.

5. Now they are CEOs in a transport industry, one land and the other air.

HERE IS THE DIFFERENCE:

1. IDRIS came from a truly private sector, and a multinational company, SHELL.

2. SYED ZAINAL ABIDIN came from a GOVERNMENT-OWNED ENTITY, PETRONAS. For all intent and purpose, Petronas is part of the Govt sector.

3.IDRIS comes on board with Management qualifications and a postgraduate degree in Industrial Relations ( that's about people)

4. SYED ZAINAL ABIDIN has a science degree (engineering). That's about it. See here his profile in Proton website http://www.proton.com/about_proton/corp_governance/Board%20of%20Directors%20-%2012.php

5. Of course, Syed Zainal Abidin carries a Datukship, as almost all Heads of Govt entities do. Idris is currently without one.

6. Achievements? MAS performance speaks for itself for Idris and PROTON's performance speaks for itself for Datuk Syed Zainal Abidin

7.On the future, Syed Zainal Abidin mouths the standard bureaucratic line:"While the results are indicative of the challenges we are facing, we believe we will emerge stronger in the next 12 months". http://biz.thestar.com.my/news/story.asp?file=/2007/2/28/business/16996639&sec=business

8.On the future, Idris Jala (MAS) says, " We are still not out of the woods yet and there is more to do. For 2007, we will continue the momentum and intensify the business turnaround initiatives to generate profit." http://www.forbes.com/feeds/ap/2007/02/26/ap3461751.html

Its all about CORPORATE LEADERSHIP.

As Dr. Hsu said (re http://malaysianunplug.blogspot.com/2007/02/idris-jala-fine-example-of-successful.html )

"This confirms what I always believe. In order to excel, you need to go through a competitive environment and only by doing so, can a person’s true potential be cultivated and realised.".

It is about promotion based on meritocracy, not based on some politically convenient set of criteria derived from a prejudiced version of the New Economic Policy.

If are competent,and has a proven record, the results show, whether you are a Malay or not.

Frank&Honest :
It is too early to praised IJ as well. Unless some commenter that their time to check the whole MAS. And not to forget that some important cost will not be itemised to show you what's going on behind the scene.

Maverick give his concern on MAS here
http://maverickysm.blogspot.com/2007/02/mas-mystifies.html

If IJ can't reform the MAS to "Do right thing", the effort is short lived.
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It is not practical to compare automobile vs airliners.

I'm just lost of words. How can they do so badly? It does take a special ability to screw up so bad...

moo_t

I agree with you.

Though I would think that Idris Jala, after coming out of a multinatinal company like Shell, would be silly enough to put a spin like that into the press, if the facts don't tally.

I for one had for sometime given MAS for dead and buried after the Tajuddin and Muni Majid fiasco.

I would not write off Idris Jala. Unless he crumbles under some sily political pressure from chaps those in the Malaysian Youth Council etc, I think this man is for real.

I sense he is humble enough to not act stupid enough like his predecessor.

MAS is still a work-in-progress in terms of overall turn around performance.

You can remember how the giant General Motors (US) nearly went under except for the guiding hand of one man.

We should give this man enough space and time.

Idris Jala's performance will be written in numbers every quarter, so we will know how good he is, one way or the other.