Recently, most of us would have read in some publications on how Proton has finally seen the light at the end of the tunnel and more good news will be expected. So much so that they are confident enough to call off talks with Volkswagen AG. But in reality, is this true?
Well, first thing first. Figures don’t lie. Proton is doing well with its Pesona model. And if anything, the future model of Proton Iswara replacement model, will ensure its further success. It has ventured into a marker which is less crowded. A reasonable sized family sedan for the price of a Perodua Viva. Chances are its pricing will be enough to turn many heads around.
Second, they have been successful in trimming their vendor list down from thousands to hundreds. Most model shared parts and therefore cutting down their inventory costs. Plus they are able to feedback to their vendors quite rapidly for any problems with inventories.
Though scarred, they seem to be doing a much better job than the previous management. But the question is, is it too late?
One best comparison method would be to compare it with Perodua. Perodua’s model is the other extreme of Proton. It has the backing of Daihatsu (which in turn is being looked after by big brother Toyota). So its cars are quite revolutionary and can compete against global models. Its production is being runned solely at Daihatsu’s discretion. So quality issue is almost inaudible.
Proton on the other hand relied heavily on government support. One cannot help but to phantom ideas that the chinese deal (where proton sold a specified number of cars to Youngman each year) has been backed somehow by the palm oil/penang bridge barter trade. Otherwise how else would a chinese company be interested in sub-standard product for their ever demanding domestic market.
Personally, I feel that Proton should have went ahead and get a foreign partner (much like the Seat car manufacturer) and survive in the throat cutting global car market.
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