AUG 8 — The federal government is going to replace the Proton Perdana V6 Executive in the official government vehicle fleet with the Honda Accord, meaning that Proton’s national car image has once again plunged.
The move has also shattered Proton’s dream to change its low-end line into a high-end line.
Proton is one of the representative works of former Prime Minister Tun Dr Mahathir Mohamad in his efforts to develop the automotive industry. However, the Proton has not been able to carry out any massive reforms over the past nearly 30 years under the government’s protection policy.
State-owned investment company Khazanah Nasional Bhd finally sold a 42.7 per cent stake to DRB-Hicom in January last year. However, as it is still controlled by Bumiputeras, Proton still enjoys its national car status.
Over the years, Proton had always been used as official government vehicles in showing respect to the national car, while carrying patriotic meaning. However, patriotic slogans, after all, cannot solve realistic problems.
The fact is, the maintenance fees for the Proton Perdana V6 Executive are high. For instance, the Perak state government had to spent RM1.3 million on official vehicle maintenance fees from 2004 to 2007.
In 2006 to 2009, the Malacca Chief Minister’s Department spent RM2.47 million on the purchase of 17 new official vehicles but RM5.12 million on maintenance. The maintenance fees were actually 142.9 per cent to 280.8 per cent higher than the new car prices.
In 2008, Pakatan Rakyat Perak state government broke tradition and used Toyotas instead as the state government’s official vehicles. Kuala Terengganu later followed suit and replaced Proton with Mercedes.
However, after regaining power in Perak, BN immediately auctioned off the Toyota Camry 2.4s purchased less than three months earlier by the previous state government. They were replaced with Proton to highlight the patriotic spirit.
However, the federal government eventually decided not to use the national car. Although the given reason was because the production of Proton Perdana V6 Executive has been discontinued, it is undeniable that the maintenance fees were too high. Proton is expected to be gradually phased out too in other states.
Why stopped its production if it really is a good car?
The decay of Proton lies in the lack of R&D capabilities, as well as vague positioning.
Proton had co-operated with Japan’s Mitsubishi in the early stage and used Mitsubishi’s engine for Proton cars. Since it was protected, it gained advantages in the market with cheaper prices.
However, weaknesses in quality gradually surfaced. Proton lost its advantage and was later overtaken by Perodua.
Proton acquired the British Lotus in 1996. With a great ambition, it wanted to revive the Lotus brand and improve the quality of Proton. However, Lotus brought only losses.
In December 2012, Proton signed a RM63 million assets and technologies acquisition agreement with Petronas Technology Ventures Sdn Bhd (PTVSB).
After all these years, Proton has spent huge amounts of money on engines but still failed to master the technology. How is it going to survive in a highly competitive market without the capability to research and develop? Due to national dignity, however, the government insists not to sell Proton to foreign enterprises and eventually, it can only keep putting in money.
In mid-June this year, Proton launched the new Saga SV, which saw a further 12 per cent reduction in prices and now, its official vehicle status has been terminated by the government. How is it going to take the high-end line?
Proton’s experience is actually a microcosm of the country. Without a good base and a clear position, no goal could be achieved no matter how great we insist. — mysinchew.com
* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malay Mail Online.
