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I still cannot believe it that I am already in Malaysia. And I also cannot believe it that our Prime Minister actually got married last Saturday. Not that I never thought he would get married again, it’s just that, maybe later and not sooner.

Another thing that I cannot believe is how Proton had been going back and forth with its discussion with Volkswagen. OK, let me say this, Proton is in a very bad position right now. The company do not generate profit at all and is running on its cash rather than profits. OK, maybe a company can run at a loss in the short-term but no company can run in the short or long term with a bleeding cash flow. And that is the biggest challenge that Proton has to overcome. If it were up to me, I would just sell the company off to anyone who wants it. At this point, the only reason why companies like GM, Volkswagen, NAZA and DRB-Hicom are showing interests on Proton is because of the huge Tanjong Malim plant, which currently is running well below capacity.

The government should just sell Proton to Volkswagen and hope that they will turn Proton around (like they did to SEAT and Skoda) or just break it up and sell all of its assets for money (I personally like this option). Proton is a disgrace to the country. I asked my Turkish friend when I met him in Turkey last March about Proton. He told me the reason why Proton did not succeed there was due to quality problem. He told me that with the price that they had to pay for Proton, they can get better looking and better quality cars from brands like Toyota or Honda.

Why is it so difficult for this so-called ‘National’ carmaker to overcome quality problem? The answer lies in the Malay vendors who want to supply parts and components and high prices but low quality. And why is it that the company could not just terminate their contract with these kinds of vendors? Well, every time they want to do that, they will get a call from certain politicians asking (read forcing) them to reconsider their decision.

It is a disgrace to the country because it made the cars affordable to Malaysians by making other cars more expensive. That is the dirtiest trick that can ever be pulled by any business. Because of that, entry level cars like Volkswagen Polo, and Honda Jazz became luxury cars in Malaysia.

OK, enough with Proton bashing. There will be a lot more time for that in the next four months. On another note, I wish Pak Lah and Datin Seri Jeanne a happy life and congratulations on their wedding last Saturday.

I guess, the next thing I want to say is to myself, “Welcome home Adam.”

“Home is not where you live, but where they understand you.” – Christian Morganstern.

Comments

yazid jay said…
Ho ho, welcome home, Adam!

In the meantime, I'm having a ball here in the UK, literally. Will be back by the end of the month, though you already know where I prefer to be, he he.

I remember in the 1980's (from reading, of course) that people initially were not confident about our own ability to produce cars locally but Proton showed that it can be done. So I guess there is a sentimental value behind the company and I would rather see it revived than sold but I suppose we'll just see how it goes.
Adam Ahmad said…
sentimental value at the expense of rakyat's money? Don't think so Yazid.

Take lots of pictures at the ball OK :)
yazid jay said…
Ha ha, to clarify, when I say 'revived' I don't mean being kept alive the way it is now. Obviously something needs to be done. However, they should keep the selling of the company as a last alternative and try to fix things instead.

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