"I believe in a country where hard work and merit, not privilege or background, determines success."
Tony Blair 2005

Thursday, May 26, 2005

Proton : On the brink of destruction?

From Bernama,
May 25, 2005 21:49 PM
Proton Adviser Laments Influx Of Foreign Cars

PUTRAJAYA, May 25(Bernama) -- Proton Holdings Bhd adviser Tun Dr Mahathir Mohamad, Wednesday lamented the level of importation of foreign cars so much so that there seems to be no more protection for cars made by the national car manufacturer.

The former prime minister said that cars were even being imported from countries which did not allow Proton into their markets. cont...


Proton cars have been synonymous with poor quality. The safety features of the car is also suspect. Therefore the importation of cars deemed superior to Proton is definitely a welcomed move for most car buyers. At last, there are cheaper options available apart from Proton. Unfortunately, despite acknowledging the emergence of new competition, Proton has done little to redeem itself. Instead its higher echelon of managers have repeatedly lamented on the lack of protection that Proton receives.

Disappointingly, our former Prime Minister, so often praised for his progressive mentality, has decided that regressing back to protectionist policies is the best advice. He should instead be spurring Proton on to take up the challenge of competing in a more globalised market. In order to do that, there has to be quality improvements in Proton cars. New marketing strategies has to be drawn up to effectively penetrate foreign markets. Perhaps convincing Malaysians first on the reliability of Proton should be the ultimate goal before thinking of effectively penetrating foreign markets. Relying on protection from the Government will carry with it long term repercussions and will inevitably destroy the company. As other car manufacturers strive for cheaper high quality cars, Proton should follow suit.

Mahathir's folly with the implementation of the New Economic Policy should not be repeated with Proton. It is time Proton competes for the loyalty of customers. The failure to do so will only spell the end for a venture that was probably too premature and unnecessary.

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