SCRAPPING POLICY COMPARISON BETWEEN PROTON EDAR AND PERODUA

SCRAPPING POLICY COMPARISON BETWEEN PROTON EDAR AND PERODUA

1. SIMILAR REQUIREMENTS FOR PROTON & PERODUA FOR CARS TO BE SCRAPPED

a) All vehicle types and models are accepted but all vehicles must be 10 years or older base on the manufacture year
b) Must be a registered vehicle in Malaysia
c) Must be free from any financial encumbrances or any other restrictions
d) Must be free from any summons, blacklist, court order and/or involved in any police case- customer to get clearance from the relevant authorities eg (JPJ/PDRM)
e) Must possess a valid non-expired road tax


2. CONTRASTING REQUIREMENT FOR CARS TO BE SCRAPPED.

a) OWNERSHIP. PROTON requires at least 6 months of ownership (as stated in the registration card) for the 10 years old car (from year of manufacture) to be scrap. PERODUA accept any 10 years old (from year of manufacture) car with rightful owner (as stated in the registration card) before the 10 March 2009.

b) RUNNING CONDITION. PROTON requires the car at all time, be able to be driven forward or in reverse for at least 20 metres. PERODUA only requires a basic and minimal running condition for purpose of placing the aged vehicle onto the car carrier.

c) PRIVATE REGISTRATION. PROTON did not specify if the vehicle to be scrap must be registered for Private and own used only but PERODUA will NOT accept any vehicle that is registered as a COMMERCIAL VEHICLE.

d) TRANSFER OF RM5,000 discount. PROTON did not explicitly allow the transfer of the RM5000 value for the scrap car but PERODUA explicitly allows the transfer to the next of kin (husband, wife, father, mother, children & siblings)

e) AMOUNT OFFERED FOR SCRAP CAR.
PROTON offers RM5,000 trade-in value for all cars of any make and model to be scrap irrespective of the market value of the car to be scrap.
PERODUA offer a maximum RM5,000 for scrap cars DEPENDING on the offer of the discount for the types and value of the new vehicle purchased at the particular period.

f) VALIDITY OF DISCOUNT VOUCHER
Once the scrapping is approved, PROTON allows the redemption of the Voucher within 3 months but will allow extension if the voucher is not redeemed due to non-availability of cars. PERODUA only allows 2 months for the voucher to be redeemed and reserves the right to impose any charges even if the delay was a due to unavailability of the requested car.


3. REQUIREMENT THAT IS ONLY APPLICABLE FOR PROTON CARS

Save as disclosed in Para 1 & 2 above, PERODUA does not impose any other condition or requirement. Other criteria and requirement that is ONLY APPLICABLE to PROTON are the FUNCTIONALITY and PARTS AVAILABILITY CHECK below. Vehicle for scrapping must pass both the two (2) checks.

(a) FUNCTIONALITY CHECK (only applicable for PROTON CARS)

i- Ignition system is active, engine is able to turn on and off without the need for external batteries
ii- Transmission Gear is functional and shifting of all gears are possible
iii- Pedals. Brake, Clutch and accelerator is functional
iv- Hand brake is available and functional
v- Drivability not affected by body entanglement, body steering, or suspension damage


(b) PARTS AVAILABILITY CHECK (only applicable for PROTON CARS)

i- DOORS. All doors are in-place
ii- HOOD. Available and in place
iii- DASHBOARD. Available and in place
iv- Seat. Are available and in place
v- INTERIOR PEDALS. Are available and in place
vi- BODY. Are in place and attached
vii- EXHAUST PIPE. Are available, intact and in place
viii- HEAD LIGHTS. 1 headlight is available and in place
ix- TAIL LIGHT. 1 tail light is available and in place
x- BREAK LIGHT. 1 brake light is available and in place
xi- WINDOWS. All windows are available and in place
xii- HAND BRAKE. Available and in place


4. Proton will take an average 2 to 4 weeks to approve the scrapping application whilst PERODUA needs 4 weeks to 6 weeks for approval.

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SKIM PELUPUSAN KERETA – panduan pelupusan kereta bagi anda mendapatkan sebuah kereta Proton Baru

SKIM PELUPUSAN KERETA – panduan pelupusan kereta bagi anda mendapatkan sebuah kereta Proton Baru
DASAR PELUPUSAN - PANDUAN UNTUK MELUPUSKAN KERETA ANDA

1. Sebahagian daripada Rangsangsan Kewangan Ke-2 seperti yang diumumkan oleh Y.A.B. Perdana Menteri pada 10 March 2009 adalah untuk merangsang penjualan kereta dengan belanjawan tambahan sebanyak RM200 juta untuk disalurkan ke Tabung Pembangunan Automotif.

2. Diskaun sebanyak RM5,000 (sebahagian dari peruntukan RM200 untuk indudstri automotif), akan diberi kepada pemilik kereta yang akan menukar-beli sebarang kereta pelbagai model yang kenderaannya berumur sekurang-kurangnya 10 tahun untuk membeli sebuah kereta baru ( Skim Pelupusan ) ( Perenggan 54 – Menteri Kewangan Malaysia ).

3. Rentetan daripada pengumuman itu, Proton telah mengeluarkan satu Piawaian Prosedur Operasi pada 11 March 2009 akan tetapi skim pelupusan PERODUA masih belum bermula lagi. Kriteria untuk kelayakan pelupusan ini adalah ketat dan pada pendapat saya akan menggagalkan tujuan dan objektif utama untuk merangsangan penjualan kereta. Peruntukkan belanjawan untuk skim pelupusan ini akan mengakibatkan pembaziran bajet jika jualan kereta tidak dapat dipertingkatkan. Peruntukan untuk skim pelupusan ini adalah sebahagian dari RM200 juta yang disalurkan melalui Tabung Pembangunan Automotif.

4. Walau bagaimana, sebagai panduan kepada sesiapa yang berminat untuk menukar beli dan melupuskan kereta mereka yang telah berumur 10 tahun untuk membeli kereta Proton baru, berikut merupakan Piawaian Prosedur Operasi untuk membantu dan mendidik orang ramai bagi mengelak dari sebarang PENOLAKAN permohonan.

5. Pemilikan bagi kereta berumur 10 tahun (untuk dilupuskan) mestilah sekurang-kurangnya 6 bulan ke atas. Dengan itu, pemilik yang memiliki kereta berumur 10 tahun ke atas dan kurang dari 6 bulan tidak akan dapat melupuskan kereta demikian. Lazimnya, peringkat umur pemilik kereta 10 tahun ke atas adalah berumur 45 hingga 50 tahun. Walaupun mereka dapat melupuskan kereta, mereka cuma layak mendapatkan pinjaman (bagi pembelian kereta baru Proton) dengan tempoh pembayaran balik selama 3 hingga 5 tahun dan akan dikenakan pembayaran bulanan yang tinggi (berbanding dengan pembayaran bulanan bagi tempoh pembayaran selama 9 tahun) . Mereka mungkin tidak mampu untuk pembayaran bulanan yang amat tinggi untuk pembelian kereta Proton baru (jika pinjaman diluluskan).

6. Kereta yang hendak dilupuskan mestilah berumur 10 tahun ke atas dari tarikh diperbuat.

7. Pemilik yang sah mesti menanda tangani Borang JPJK1C , Jabatan Pengangkutan Jalan (JPJ) untuk membatalkan pendaftaran kereta demikian di bawah Perenggan 13 (2) , Akta 1952 Jabatan Pengangkutan Jalan.

8. Kereta yang akan dilupuskan MESTI MEMATUHI :
(i) Pemeriksaan fungsi
(ii) Pemeriksaan alatan.

9. Pemeriksaan Fungsian

(a) Sistem pencucuhan yang aktif, enjin boleh dinyala dan dipadamkan tanpa bantuan bateri luaran (ignition).

(b) Pemanduan – kereta boleh dipandu ke hadapan dan undur sekurang-kurangnya sejauh 20 meter.

(c) Sistem Gear masih berfungsi dan dapat menggerakkan semua gear.

(d) Injak-injak (Pedal) , cekam (Clutch), brek (Brake) dan pemecut (Acclerator) masih berfungsi.

(e) Brek Tangan ( Hand Brake ) masih ada dan berfungsi.

(f) Pemanduan tidak terjejas oleh kerosakan pada bahagian badan kereta, steering atau suspension.

10. Pemeriksaan Alatan
(a) Pintu – semua pintu masih ada dan lengkap.
(b) Hud (bumbung) – masih ada dan lengkap
(c) Papan pemuka (Dash Board) - masih ada dan lengkap
(d) Tempat Duduk (Seat) – masih ada dan lengkap
(e) Injak-injak dalaman ( Interior Pedals ) – masih ada dan lengkap
(f) Badan Kereta – masih ada dan lengkap
(g) Paip eksos – masih ada dan berkeadaan baik
(h) Lampu depan – satu lampu masih ada
(i) Lampu belakang – satu lampu masih ada
(j) Lampu brek – satu lampu masih berfungsi
(k) Tingkap – semua tingkap masih sempurna
(l) Brek tangan ( Hand Brake ) – masih ada

11. Setelah kedua-dua prasyarat telah dipatuhi, kereta itu mesti di periksa dan diluluskan oleh Puspakom serta lulus pencarian JPJ. Pemeriksaan Puspakom akan dikenakan caj minima sebanyak RM25 untuk satu kali pemeriksaan.

12. Setelah kedua-dua prasyarat tersebut dipatuhi, pembeli dikehendaki menyediakan dokumen-dokumen berikut ;
(a) Kad Pendaftaran Kereta yang asli (untuk diberi kepada Proton Edar Sdn Bhd)
(b) Borang JPJ K3 asli (Borang tuntutan pemilik yang telah ditanda tangan kepada Proton Edar Sdn Bhd)
(c) Borang JPJ K1C yang asli (untuk diberi kepada Proton Edar Sdn Bhd)
(d) Serahan kereta dan kunci kereta (kepada Proton Edar Sdn Bhd)

13. Proton Edar akan mengendalikan pemeriksaan PDRM, pemeriksaan ketaksolvenan dan pemeriksaan kastam untuk mendapatkan kelulusan baucer diskaun RM5,000 bagi pelupusan kereta.
14. Setelah baucer RM5,000 dikeluarkan untuk melupuskan kereta, pembeli mempunyai tempoh maksima 3 bulan untuk menebusnya.

15. Semua kereta yang telah diserahkan tidak boleh di tuntut kembali oleh pelanggan dan ianya akan dimansuhkan oleh JPJ.


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SCRAPPING POLICY- your guide to scraping your car for a NEW PROTON

SCRAPPING POLICY- YOUR GUIDE TO SCRAPPING YOUR CAR

(BAHASA MALAYSIA VERSION WILL BE POSTED SOON)


1. Part of the Second financial stimulus announced by the Prime Minister on 10 March 2009 was to stimulate the automotive car sales with an additional budget of RM200million to the automotive development fund.

2. Within the RM200million budget, a discount of RM5,000 will be given to car owners, who trade in their cars of any make, which are at least 10 years old, for the purchase of new cars (scraping policy) (para 54- Minister of Finance).

3. Pursuant to the announcement, Proton came out with A standard operating procedure on 11 March 2009 BUT PERODUA had yet to start. The qualifying criteria for scrapping, in my personal opinion is an unnecessary red-tape that will defeat the sole purpose and objective to simulate the automotive sales and thus waste extensively part of the RM200million budget allocated for the automotive development fund.

4. However, for the public who are interested to trade-in and scrapped their 10 year old vehicle to buy a new Proton, the followings are guidelines and Standard Operating Procedures intended to assist and educate the interested party to AVOID any UNNECESSARY REJECTION.

When a customer brought along their 10 years old vehicle for application to scrap, the customer must bring along the following documens:

a) Photocopy of vehicle owner’s IC/Passport – must sight the original
b) Photocopy of buyer’s IC/Passport – (if different) must sight the original
c) Photocopy of registration card (must sight the original
d) Original Puspakom Identity Inspection – B2 (valid for 1 month from the date of inspection) (Puspakom inspection will only cost RM25)
e) Original JPJ search result
f) Original Approval Permit (AP)- for imported/CBU vehicle



5. Ownership of the 10 year old vehicle (to scrap) must be 6 months and above. Thus, those who owned the 10 year old car for less than 6 months will not be able to scrap those car. More often, the age bracket of the owner (of the 10 year old car) is between 45 or 50 years old, thus although they can scrapped their car, they may only qualify for loan (to buy a new Proton car) with a maximum duration of 3-5 years that bear a higher monthly repayment (compare to the monthly repayment for 9 years loan duration). They may not be able to afford the monthly repayment to buy a new Proton (that is if the loan was approved).

6. The car to be scrap must be 10 years and above from the manufacturing date.

7. Rightful owner must sign Road Transport Department (JPJ) form JPJK1C to cancel the registration of the said vehicle under Paragraph 13(2) of the Road Transport Department Act 1952

8. Sales representative must inspect the said Vehicle condition before accepting the car under the scrapping policy. The car to be scrapped MUST PRINCIPALLY COMPLY TO (i) FUNCTIONALITY CHECK
(ii)PARTS AVAILABILITY CHECK
If the two (2) pre-condition chck as outlined below are fulfilled, a redemption Voucher RM5,000 will be issued irrespective of the market value for the car. If customer agrees to participate in this scheme, sales representative must advice the customer on the requirement for eligibility of the Scheme and the required documents to be submitted.


9. FUNCTIONALITY CHECK:

(a) Ignition system is active, engine is able to turn on and off without the need for external batteries

(b) Drivability, car should be able to be driven forward or in reverse for at least 20 metres.

(c) Transmission Gear is functional and shifting of all gears are possible

(d) Pedals. Brake, Clutch and accelerator is functional

(e) Hand brake is available and functional

(f) Drivability not affected by body entanglement, body steering, or suspension damage


10. PARTS AVAILABILITY CHECK

(a) DOORS. All doors are in-place

(b) HOOD. Available and in place

(c) DASHBOARD. Available and in place

(d) Seat. Are available and in place

(e) INTERIOR PEDALS. Are available and in place

(f) BODY. Are in place and attached

(g) EXHAUST PIPE. Are available, intact and in place

(h) HEAD LIGHTS. 1 headlight is available and in place

(i) TAIL LIGHT. 1 tail light is available and in place

(j) BREAK LIGHT. 1 brake light is available and in place

(k) WINDOWS. All windows are available and in place

(l) HAND BRAKE. Available and in place


11. The customer may inspect the vehicle and conduct a JPJ search before or after approaching any Proton Showroom. However, if the vehicle has not been inspected, once the above 2 pre-condition are complied, then the vehicle MUST be inspected and approved at Puspakom and pass the JPJ search before the application can be submitted. The Puspakom inspection will cost the buyer a minimal RM25 per inspection.

12. Once the above two pre-condition are complied, buyer need to provide the following documents:

(a) Original Registration Card (Hand-over to Proton Edar Sdn Bhd)
(b) Original JPJ K3 Form (Ownership-claim form duly signed to Proton Edar Sdn Bhd)
(c) Original JPJ K1C form (Hand-over to Proton Edar Sdn Bhd)
(d) Hand-over the vehicle and car key (to Proton Edar Sdn Bhd)

13. Proton Edar will then conduct PDRM inspection check, insolvency check and custom check for the RM5,000 discount voucher approval to scrap the vehicle.

14. Once the RM5,000 voucher is issued to scrap the car, buyer has a maximum 3 MONTH to redeemed the voucher.

15. All vehicle surrendered cannot be claimed back by customer and will be de-register from JPJ.

WAKIL PENGEDAR PROTON YAKIN BALIK MODAL DENGAN EXORA

PROTON EXORA PENENTU UNTUNG RUGI, HIDUP ATAU MATI PENGEDAR-PENGEDAR PROTON


April 2009, Kuala Lumpur. “ Purata keseluruhan jualan bulanan kereta setiap pengedar sekarang, telah menunjukkan peningkatan dengan mencatatkan jualan sebanyak 35 buah kereta dari pelbagai model berbanding dengan 28 buah kereta sebelum ini. Untuk mencatatkan keuntungan (break-even), setiap pengedar perlu menjual sekurang-kurangnya 40 buah kereta sebulan bagi pengedar di Lebah klang atau 35 kereta bagi pengedar di bahagian pendalaman. Pelancaran kereta baru Proton Exora akan dapat meningkatkan purata jualan untuk mengelak dari kerugian” kata Armin Baniaz Pahamin selaku Pemangku President Persatuan Pengedar Proton Edar Malaysia (PEDA).

1. Proton Exora merupakan penambahan model yang ke-sembilan bagi semua model-model kereta dijual oleh Proton. Buat masa ini, terdapat lapan model yang berada di pasaran merangkumi Proton Satria Neo, Proton Waja, Proton Gen2, Proton Persona, Proton Arena (diatas permintaan), Proton Perdana, Proton Savvy dan Proton Saga. Pada masa ini, hanya Proton Saga dan Proton Pesona sahaja yang laris dijual.

2. Dengan kualiti yang bagus dan struktur harga Proton Exora yang berpatutan, kami yakin bahawa kereta baru ini akan mendapat sambutan yang baik dan akan meningkatkan rataan jualan kereta Proton dengan sekurang-kurangnya 30%.

3. Proton Exora bersama dengan Proton Saga dan Proton Persona dijangka akan menyumbangkan sebanyak lebih 80% dari jualan kereta Proton keseluruhan. Berdasarkan jangkaan pengeluaran bulanan kereta Proton Exora, setiap cawangan dan pengedar akan diperuntukkan sekurang-kurangnya 10 buah kereta Proton Exora setiap bulan.

4. Pengeluaran kereta sebanyak 10 kereta setiap pengedar akan menjadi asas kepada tempoh menunggu (waiting list) penghantaran kereta pelanggan. Pelanggan yang telah membuat pesanan sebelum pelancaran hari ini akan diberi keutamaan penghantaran. Setakat ini, kami telah menerima lebih dari 2000 pesanan bagi kereta baru Proton Exora di seluruh Negara walaupun tanpa melihat kereta baru tersebut.


5. Peningkatan jualan kereta (dari purata jualan 28 kereta kepada 35 kereta sebulan setiap pengedar) bagi setiap pengedar juga berdasarkan peningkatan peratusan kelulusan jumlah pinjaman sewa beli pelanggan. Kelulusan pinjaman sewa beli bagi pembeli kereta Proton pada awal tahun adalah kritikal iaitu 30% kadar kelulusan atau hanya 3 kelulusan daripada setiap 10 permohonan pinjaman sewa beli yang dibuat . Kadar peratusan kelulusan buat masa ini telah meningkat dari 30% ke 50% akan tetapi PEDA percaya kadar kelulusan ini masih boleh diperbaiki.

6. Walaupun terdapat peningkatan dari segi jualan kereta, tetapi keuntungan yang diperolehi dari hasil jualan setiap kereta semakin merosot. Ini berikutan amalan dari segelintir pengedar yang tidak bertanggung jawab. Pengedar demikian telah menawarkan komisyen yang lebih tinggi kepada jurujual dari pengedar yang lain untuk mendapatkan pelanggan. Ini bertentangan dengan kadar komisyen yang telah ditetapkan oleh Proton Edar dan mewujudkan situasi dimana tawaran komisyen yang tertinggi akan membolot majoriti jualan dan seterusnya mengakibatkan kerugian yang besar kepada pengedar-pengedar yang lain (disorderly trade practice)

7. Pengedar seharusnya bersaing dengan Perodua atau pesaing yang lain dan bukannya diantara pengedar-pengedar Proton sama-sendiri. PEDA menyeru kepada semua pengedar Proton supaya memberhentikan segala amalan-amalan yang merosakkan dan mencemarkan seluruh rangkaian pengedar. Ia tidak memberi apa-apa manfaat atau merosakkan semangat keakraban dan berkumpulan. PEDA terikat dengan perlembagaannya untuk melindungi semua pengedar Proton dan juga orang awam, tidak akan teragak-agak untuk menyokong dan mencadangkan kepada Proton Edar pemecatan pengedar-pengedar yang tidak senonoh ini terutama apabila Yg Bhg Dato Nadzmi Salleh, Pengerusi Proton berkali-berkali menekan kan untuk mengurangkan jumlah bilangan pengedar.

8. Pengerusi Proton dan pihak pengurusannya serta PEDA telah bersetuju untuk memberi keutamaan memecat pengedar yang mengamalkan perbuatan tidak senonoh itu (disorderly trade practice).

9. PEDA menggesa orang ramai supaya mengunjungi bilik pameran atau pejabat Proton yang sah untuk membuat sebarang pembayaran pendahuluan. Orang ramai diminta tidak menyerahkan bayaran kepada mana-mana jurujual di luar bilik pameran dan sentiasa mendesak untuk mendapatkan resit rasmi yang mempunyai logo Proton juga nama pengedar yang sah serta alamat dan nombor untuk dihubungi kembali.

10. Skim Pelupusan Kereta yang diperkenalkan tidak memberi apa-apa kesan kepada jumlah jualan kereta baru Proton walaupun terdapat banyak pertanyaan. Ini mungkin punca dari syarat-syarat polisi yang ketat untuk melupuskan kereta yang berumur lebih dari 10 tahun itu. Hanya kereta yang lebih dari 10 tahun dan mempunyai cukai jalan yang sah, berkeadaan baik (road worthy condition) dan lulus pemeriksaan Puspakom akan diluluskan di bawah skim pelupusan. Skim pelupusan ini diperkenalkan untuk mendorong dan mempertingkatkan jualan kereta ekoran dari kemelesetan ekonomi. Peruntukkan dana bagi skim pelupusan kereta ini akan terbuang dan objektif untuk mendorong penjualan kereta juga tidak akan tercapai dengan adanya syarat-syarat ketat yang tidak munasabah untuk melupuskan kereta yang sudah berumur 10 tahun.

11. Rangsangan kewangan ke-dua (2nd financial stimulus) yang awal diumumkan masih belum memberi apa-apa kesan lagi kepada jualan kereta Proton, operasi perniagaan pengedar atau pada industri automotif.

12. Orang awam masih lagi dibebankan dan tidak dapat menjual kereta mereka hasil dari kadar penilaian yang rendah. PEDA telah mencadangkan kepada pihak Kerajaan untuk menubuhkan satu perbandanan yang berasingan dari bank untuk membuat nilaian ke atas kereta terpakai di Malaysia seperti di Negara-negara maju yang lain. Penilaian ke atas kereta terpakai seharusnya mempertimbangkan polisi kerajaan yang melibatkan tempoh pinjaman yand diluluskan, tempoh pembiayaan, keadaan kereta termasuk aksesori, status sejarah kemalangan, catatan pembatuan (mileage) jumlah pemilik, rekod servis dan penyenggaraan serta rekod jenayah dan penipuan. Pelbagai faktor harus dipertimbangkan bagi penilaian ini. Ianya akan mengurangkan beban orang awam dan akan meningkatkan jualan automotif.

PROTON DEALERS CONFIDENT OF BREAKING-EVEN WITH NEW PROTON EXORA IN LINE UP

“PROTON EXORA WILL DETERMINE THE BREAK-EVEN POINT & SURVIVABILITY FOR PROTON DEALER”

APRIL 2009, KUALA LUMPUR. “The average monthly car sale per dealer had improved from 28 car sales to 35 cars of various mix model variance. Urban dealers need to sell at least 40 car sales per month to break-even. The launching of Proton Exora today, will increase the average car sales per dealer by 10 additional units per month to break-even.” said Armin Baniaz Pahamin, Acting President Proton Edar Dealers Association Malaysia (PEDA).

1. The new Proton Exora will be the 9th addition to Proton range of cars. Currently there are 8 model variances under Proton brand, namely Proton Satria Neo, Proton Waja, Proton Gen2, Proton Persona, Proton Arena (base on request), Proton Perdana, Proton Savvy and Proton Saga. Currently, the most sellable model are only Proton Saga and Proton Persona.

2. Given the quality and the price structure of the new Proton Exora, we are confident the new car will be well received and will increase Proton average car sales by at least 30%.

3. Proton Exora together with Proton Saga and Proton Persona is expected to contribute 80% of total Proton sales. Based from the expected monthly production, every branches and dealers will be allocated at least 10 Proton Exora per month.

4. This will be the basis for customer’s waiting list. Customers that booked prior to the launching today will be given the main priority for deliveries. Todate, we received more than 2000 bookings for the new Proton Exora nationwide without the customer sighting the new car.

5. The increase in total car sale per dealer, were attributed to the improvement in customer’s hire-puchase loan. Proton car buyer approval rate was critical at 30% approval rate or only 3 approvals for every 10 application for hire-purchase loan. Now approval rate has improved from 30% to 50% but PEDA believe the percentage of approval can be further improved.

6. Although the monthly average number of car sold per dealer has improved, but the profit per car sold is declining due to unhealthy practices by some unscrupulous dealers. Some irresponsible dealers offered higher commission to other dealers’ sales personnel to bid for customers. This is in adverse to the allowed commission fixed by Proton Edar and created an inevitable environment of highest bidder wins that resulted in major loss to dealers.

7. Dealers should be competing with Perodua or other competitors and should not be competing with other Proton own dealers. PEDA urge all Proton dealers to stop all form of disorderly trade practices that had damage the network and is not in the spirit of camaraderie and teamwork. PEDA is bounded by its constitution to protect all Proton dealers as well as the public and will not hesitate to recommend (to Proton Edar) for termination any dealers that are involved in any disorderly trade practices especially since Yg Bhg Dato Nadzmi Salleh, Proton Chairman had specifically and explicitly reiterate to rationalize the number of dealers.

8. Proton Chairman and management together with PEDA had agreed the first priority for any termination will be on the dealers practicing disorderly trade practices.

9. PEDA urge the public to visit and only pay for booking fees at the Proton authorized showroom/office and avoid making any payment to any sale representative outside the Proton authorized showroom and always insist for a duly signed valid official receipt bearing Proton logo and the authorized dealer’s name, address and contact number.

10. The scrapping policy introduced had negligible effect on new Proton car sales although there were a lot of inquiries. This may be due to the stringent qualifying requirement that requires all cars for scrapping to possess a valid road tax, in road worthy condition and pass the Puspakom inspection. The scrapping policy was introduced to spur the automotive sales during the current recession. The budget allocated for the scrapping policy will be a waste and the objective to spur the automotive sales will not be achieved with the unnecessary stringent requirement to scrap the 10 year old cars.

11. The 2nd financial stimulus that was announced earlier does not have any material affect yet on Proton car sales, dealer’s business operation or the automotive industry.

12. The public is still burden and are not able to dispose their existing car due to the low valuation. PEDA had proposed for the Government to establish a body that is independent from the bank to value the second hand car in Malaysia similar to other developed nation. The second car valuation should take into consideration the government policy in Bank’s margin and duration of finance, physical condition of the vehicles including any added accessories, accident history status, mileage of the vehicles, number of ownership, service and maintenance record and any history of criminal or fraud. There are various other factors that can be considered into the official valuation. The public will be less burden and the automotive sales will be in stronger with the establishment of the independent body.

BIROKRASI PENTADBIRAN DI JABATAN KERAJAAN PUNCA KOS TINGGI PENYENGGARAAN PROTON PERDANA

PERSATUAN PENGEDAR PENGEDAR PROTON EDAR MALAYSIA

SIARAN AKHBAR

"BIROKRASI PENTADBIRAN DI JABATAN KERAJAAN PUNCA KOS TINGGI PENYENGGARAAN PROTON PERDANA "

 

Kuala Lumpur , "Kerajaan Pusat dan Negeri seharusnya menghapuskan birokrasi pentadbiran bagi  pendaftaran wakil Pusat Servis Kereta Proton Edar bagi mempertingkatkan day saingan", kata Armin Baniaz Pahamin, Timbalan President , Persatuan Pengedar Proton Edar Malaysia.

 

Sehingga hari ini,  cuma wakil pusat servis  Proton Edar yang  berdaftar dan  diluluskan oleh kerajaan   sahaja dibenarkan menjalankan  kerja-kerja penyenggaraan kereta Proton milik kerajaan pusat dan negeri. Ianya menyebabkan kerajaan Negeri dan Pusat tidak mempunyai banyak pilihan untuk  menghantar kenderaan kerajaan ke wakil-wakil pusat servis Proton Edar  yang lain  bagi  kerja penyenggaraan.  Langkah berkenaan mampu mengakibatkan harga kos penyenggaraan yang amat tinggi dan tidak terkawal dikenakan oleh pemilik wakil pusat servis Proton Edar yang berdaftar dan diluluskan kerajaan. Ini kerana hanya ada sedikit sahaja wakil pusat servis yand berdaftar dengan kerajaan berbandingkan dengan jumlah keseluruhan wakil-wakil pusat servis Proton Edar di Malaysia. Apabila tiada pilihan, akan lahirlah budaya sogokan atau kenaikan harga yang tidak terkawal.

 

Tanpa birokrasi pentadbiran pendaftaran bengkel di Jabatan Kerajaan,  kerajaan negeri dan pusat boleh mendapatkan kerja-kerja penyenggaraan dari lebih 300 bengkel Proton Edar dan Eon dengan  harga yang lebih berpatutan di seluruh Malaysia.

 

Proses perlantikan bengkel berdaftar Proton Edar adalah sangat ketat dan sentiasa dipantau bagi memastikan kualiti kerja dan pengendalian yang baik. Dengan itu,  bengkel berdaftar Proton Edar seharusnya di kecualikan dari segala pendaftaran di Jabatan Kerajaan bagi kerja-kerja penyenggaraan kereta Proton sama ada ianya masih  didalam waranti atau telah tamat tempoh waranti.  Saingan di antara 300 bengkel berdaftar Proton Edar  bagi kerja-kerja penyenggaraan kereta milik kerajaan  dapat bantu membanteras  harga kos yang amat  tinggi oleh pemilik bengkel yang tidak bertanggung jawab.

 

Kenyataan dari tiga kerajaan negeri , Terengganu, Perak dan Pulau Pinang, mendedahkan harga penyenggaraan yang tinggi, merosakan reputasi kereta Proton dan membebankan wakil jualan dan servis Proton sedangkan kita sebagai pengusaha pengusaha wakil Pusat servis Proton Edar memang yakin harga kos penyenggaraan bagi kereta Proton Perdana  adalah berpatutan dan tidak setinggi seperti yang dimaklumkan oleh kerajaan kerajaan Negeri.

Kebanyakkan kereta Proton yang berada di pasaran mempunyai lanjutan waranti melebihi 5 tahun.  Kos  bagi kerja penyenggaraan   biasa  kereta Proton adalah dari harga RM200 sehingga ke RM500 setahun tertakluk kepada penggunaan dan tingkah laku pemanduan kereta.

Lebih dari 60,000 unit Proton Perdana telah dijual sejak ianya berada di pasaran dan sehingga kini lebih kurang 10,000 unit Proton Perdana dijual setahun.  Kereta itu laris di pasaran kerana harga kereta dan kos penyenggaraan yang berpatutan.

Dengan adanya birokrasi pendaftaran di Jabatan Kerajaan bagi pemilik bengkel terutama wakil pusat servis Proton Edar membataskan  bengkel yang cekap dari menyenggara dan memberi sebut harga yang lebih rendah dan berpatutan untuk kenderaan kerajaan.  Pendaftaran wakil Pusat servis Proton Edar Yang memang dibawah naungan Kerajaan di Jabatan-jabatan Kerajaan adalah tidak berfaedah kepada mana-mana pihak dan hanya menggalakaan budaya sogokan, kata Armin.  Kita seharusnya bersama memikirkan langkah-langkah  membanteras masalah ini dengan menghapuskan pentadbiran birokrasi yang telah terbukti di 3 negeri kehadiran budaya sogokan dan tidak kompeten.

 

“GOVERNMENT RED-TAPES ARE THE CAUSE OF PROTON PERDANA HIGH COST OF MAINTENANCE”

 

PROTON EDAR DEALERS ASSOCIATION MALAYSIA

Press Release

 

“GOVERNMENT RED-TAPES ARE THE CAUSE OF PROTON PERDANA HIGH COST OF MAINTENANCE”

 

KUALA LUMPUR. “State and federal government should eradicate the red-tape for the registration of Proton Edar authorized workshop to ensure competitiveness” Said Armin Baniaz Pahamin, Deputy President, Proton Edar Dealers Association Malaysia.

 

Currently, only the government-registered Proton Edar authorized workshops are allowed to service and maintain state and federal government vehicles which limits the option for the state and federal government to send their vehicles for servicing. This practice will also lead to corruption and exorbitant cost of maintenance charged by the registered workshop since there are less workshop as an alternative option.

 

Without the red-tapes of state and federal government registered workshop, the State or Federal government can obtained the best and most competitive quote from more than 300 authorised Proton Edar and Eon service dealers network in Malaysia.

 

The appointments of Proton Edar authorized workshop are very stringent and are regularly assessed for competencies and quality control. As such, Proton Edar authorized workshop should be exempted from any registration to service Proton vehicles under warranty or after warranty for the Government. The competition between the 300 authorised dealers to service government vehicles will eradicate any unscrupulous and unnecessary high cost charges.

 

“It is very damaging for Proton dealers when three state governments, Terengganu, Perak and Penang, exposed a high cost of maintenance for Proton Perdana, especially when we, the authorized Proton workshop operator know for a fact that the cost of maintenance for Proton Perdana is not as exorbitant”.

 

Most of the Proton cars sold now are with a total of 5 years extended warranty. The cost of regular maintenance for proton cars ranges between RM200 to a maximum of RM500 per scheduled service depending on which models.

 

A new Proton Perdana bought in 2004 was manufacturer’s warranted for 2 years. A new Proton Perdana that is purchased now is with an option for extended warranty for a total of 5 years. With a 5 years extended warranty, Proton Perdana annual maintenance cost is less than RM500 per annum depending on the usage and driving behavior.

 

More than 60,000 Proton Perdana has been sold since it was launched and is still selling an approximate 10,000 units of Perdana per annum. The car is saleable because of the competitive pricing as well as the reasonable cost of maintenance.

 

Having workshop to be registered with the Government, especially Proton Edar authorized workshop will limit the available competent workshop to quote and service government cars for a cheaper price. Unnecessary registration and red-tapes will also open the floodgate for corruption, added Armin. We should eradicate the source of the problem rather than pin-pointing an already proven corrupted and incompetent system.

COLOUR BLIND MALAYSIA

COLOUR BLIND MALAYSIAN-

We walked to the nearest Mamak restaurant from the commissioner of oath office at Desa Pandan. We sat as we ordered Nescafe tarik. This was at least my 7th glass of Nescafe tarik today. I lit my cigarette, lean against the white pillar next to our table as I listen to Jay. Jay, an indian lawyer, began by voicing his distress at how members of parliament, politicizes racial sentiment. It is despicable to hear the non-bumiputra questioning the NEP and the bumiputra themselves claiming they will not survive without the NEP. The political party had successfully created racial distress from the non-affected Malaysia citizens.

The concept of NEP never took place in the appointment of Proton Edar (or formerly known as USPD) dealers. The appointments of Proton Edar dealers were never for the Malays nor were there any percentage of Malay dealers being maintained at all time. Proton Edar dealers is probably the true picture of the Malaysia economy without any racial sentiment being politicized. I was in Corporate Finance with the Commerce International Merchant Banker back in 1997, when I first applied and appointed a Proton Edar dealer. Though I would like to believe that my appointment as Proton Edar dealer was on my own merit, having been with the team that was responsible for the corporate acquisition and restructuring of DRB-HICOM, I am sure there were many other qualified Malays. Despite my credibility being in Corporate Finance, Student Union President in a British University and being actively involved in NGOs, the truth is, I was appointed a Proton Edar dealer in 1997 because my dad was the Director General of the Road Transport Department or JPJ, I was 23 years old. The youngest dealer ever appointed.

This reiterates the economics of who-you-know or chronyism rather than the ‘what-you-know’. Whilst the economics of Chronyism may be instrumental to secure a proton dealership in the past, the ‘who-you-know’ or ‘what-race-you-are’ does not have any impact to any preferential treatment on the business well-being of a Proton dealer, irrespective whether you are a Malay, Chinese or Indian. There are many successful Bumiputra dealers and there were also many failed Chinese dealers. Prominent dealers under the late Tan Sri Megat Junid or even Dato Seri Chua Jui Meng irrespective of race ceased to be a dealer when they were still in power, when their business failed. The ‘who-you-are’, ‘who-you-know’ or the NEP does not guarantee the success of a Proton dealer. There was a healthy mix of Chinese, Malay and Indian proton dealers in the network.

The Malays were not appointed a Proton dealer because there were Malay under the NEP, nor were they successful because of any additional assistant rendered by Proton or the government (NEP). The non-bumiputra dealers did not fail because of extra assistant or facility granted to the malay. Even with the existence of the NEP, the rise and failure of a business lies in the COMMITMENT of each individual dealer irrespective of ‘who-you-are’, ‘what-you-are’ race and ‘who-you-know’ chronysim.

The current political outcry politicizes racial disharmony akin of saying the Chinese dealers has been marginalise because of bumiputra benefits that they (Chinese) were deprived. On the other hand, UMNO’s outburst on the Malay needs to be salvage with NEP or bumiputra rights is also unwarranted and unbecoming. These are all old political tricks to gain support.

Do not get conned into believing the political outcry in racial disharmony. Malaysia has progressed well without racial disharmony. To move forward, we must all be COLOUR BLIND and see Malaysia as Malaysian instead of Malay, Chinese or Indian.

Proton, Gas and the Government

The fuel price increased had attracted various opportunists for cheap publicity but it did not attract any effort by our Prime Minister or its cabinet Ministers to find means of overcoming the public’s burden in absorbing the price increase of most essential items except for the RM625 one-off subsidy for road tax rebate which cannot even pay for the increase in chicken price annually let alone the petrol price hike.

Amongst the many opportunists is our very own Proton whom made headline for its plan to fit the Waja, Saga and Persona with NGV (Natural Gas for Vehicles) kits by year-end. These NGV kits will be installed at the production level and will come with a warranty.

For the warranty to be extended with the NGV fitment, Proton Edar authorised workshops must be sanction to undertake the NGV service and repair. The mechanics and technician has to obtain special licence and the workshop must apply for special permit to service gas engine. The workshop also requires special tools for the service. Currently, none of Proton Edar service dealer network is authorised for NGV servicing or even aware of any administrative requirements to obtain the mechanic licensing or permit for the workshop. The process and procedures for the application may take longer than the expected year end for launching of Proton vehicles with the NGV kit installed. If these are not resolved, how do we expect the customers to be able to claim any warranty or servicing associated with the NGV vehicles.

But assuming the licensing and permit administrative procedures are complied with and in the absence of great thinkers in the Government or the ‘4th floor’, does Malaysia infrastructure is ready for gas? With Proton and other car manufacturer following Proton's moves for gas, soon there will be an influx of NGV vehicles.

To keep the electricity price low, the government during Tun Mahathir era did not allow gas price to be increased. The government decide the price of gas to be sold to power stations. Petronas sustained losses from the low gas price but not as much under Tun’s Government given the crude prices were only around US30 dollar per barrel then. Today, it is US139 dollars per barrel. The cost of gas, likewise had increased and the losses suffered by Petronas is much higher but then this is again for the Abdullah’s Government and Petronas to resolve. Hints.. gas price may increase soon too…

Petronas also supplies NGV for motor vehicles but the amount is limited because the sale of NGV incurs a big loss in profit to Petronas as there is no reimbursement by the Government. Other oil company refuse to sell gas as they would also lose money given the low gas price that was fix during Tun Dr Mahathir’s government, hence, if all car manufacturer start producing vehicles with NGV, the price of gas may be increased to make it attractive for Petronas and other oil company to provide gas at all the petrol stations.

Currently there are very limited petrol stations providing gas for vehicles which is mostly used by taxis. Once Proton began selling cars with NGV kits, consumers will be burden with limited source for petrol stations with gas supplies and may have to queue a few kilometres long with all the taxis to refuel their gas. Notice the queue at all petrol kiosk (such as the one near KLCC and kelana jaya) with gas supplies.

So really, does the NGV kit by Proton and other car manufacturer the answer for the public outcry due to petrol price hike? A proper planning preparing the authorised workshop dealers network for NGV vehicles service licensing, permits and training and an affordable price for the NGV kit alone will not ease the public burden. The Ministry of Domestic Trade & Consumers Affair has to ensure that all petrol stations are able to supply gas and more importantly, can Petronas sustain the loss in profit from the increase in sales of gas to the public, or will there be a gas price revision to attract other oil company to supply gas at their petrol stations for the convenient of the public. With the possible price revision, what will happen to proton vehicles with NGV fitment?

Unless the Government spearhead the gas as an alternative to cheaper fuel for cars, Proton and various other automotive manufacturers move towards NGV will just be another failure. But thumbs up to Syed Zainal and Proton as well as other car manufacturer for the effort to ease the public outcry.

Bernama News TV Interview

On Monday morning, I received a call from Laili Rahman, Broadcast journalist from Bernama News TV for an interview on my capacity as the Deputy President of the Proton Edar Dealers Association Malaysia to be aired this Saturday 21 June 2008 on Bernama News TV channel 502 Astro. I was asked to comment on the possible effect on Proton car sales due to the increase in petrol price. The interview was set on Tuesday and we had the interview yesterday but I am sure some of what was said will be censored.

The morning did not start too well with lots of screaming on my end when my Fasfik sales performance did not meet my half month target. I sat with all my Head of Departments and brainstormed on various measures to overcome the shortfall in our sales performance. I only had 30 minutes before the scheduled interview with Bernama and in temperament quickly conclude the brainstorming discussion when Laily arrived. I greeted the charming reporter and began our conversation with what other industry feels with all the price increase. Almost all industry extended a very negative view. The followings are the excerpts from the interview.

Laily Rahman: How do you see the sales performance of Proton's car after the announcement of new fuel prices?

Armin Baniaz: The fuel price increase will not have a major direct impact on Proton car sales as Proton is a people’s car. The bulk of Proton model variances ranges from 1.1, 1.3 to 1.6 cylinder capacity and are economical to use. The petrol price increase may instead improve the sales of Proton cars when the public then realise it is more economical to use Proton cars. For example, Proton Savvy was recorded in the Malaysia Book of Record for the best fuel consumption with 24km per litre.


Laily Rahman: You mentioned that it will not have a direct impact, is there an indirect impact?

Armin Baniaz: Yes indeed. The fuel price increase may affect the existing hire purchase loan repayment due to having less disposable income. The majority of proton customers are from the middle to lower income group and they usually (before the petrol price increase) do not have any extra disposable income. With the increase in the petrol price as well as the price of other essential commodities such as price of chicken, electric bills etc, they may realise then realise that they cannot afford to repay the car monthly repayment. This will increase the Bank’s Non-Performing Loan (NPL) and Banks may be more stringent with hire purchase loan approval that will eventually affect the sales of Proton cars.

With the increased in price of fuel, and the price of some essential expenditures such as electricity, water, even chicken etc.., the lower income earner that comprised of a large majority of the population who also purchased a car under hire-purchase loan usually can only meets end without any further savings or other disposable income. Any increase in essential expenditures, will be the opportunity cost to their current expenditure such as the monthly car repayment.

Laily Rahman: Will the petrol price increase effect the operation of Proton Dealers too?

Armin Baniaz: It should affect both Proton as well as the dealers, the cost of operation will be increased (especially the movement and the logistics of our stocks are cars). Currently, although Proton sales have picked up, but the dealers network is still far from profitable (due to the over-congestion of the dealers appointment). Proton dealers cost of operation is much lower than that of Proton’s own-branch. I can safely assume the dealer’s cost of operation is only approximately 30% of the Proton own-branches. Proton’s own-branches in the aggregate are selling less than double what the dealers are selling, hence there is no way Proton’s own branch are making profit (given the same profit margin as the dealers). It makes more sense for Proton to close some of their branches (rather than subsidising the lost incurred by their own branch) and convert their Platinum branches into a WARRANTY AND AFTER SALES CENTRE to further enhance and signal better confident in their cars to the customer.

For proton to cost-down operation and close their branches. All resources should be channel towards enforcing the neglected Proton IP rights and moulding every dealers towards similar goal without any biaseness to their own branch. The Dealers invested their money and is more sales, customer and profit oriented (being business owner). Nonetheless, the cost of maintaining the sales network will then be borne by the dealers.

Since the inception of Proton back in the 1980s, dealers margin were kept low to ensure long term survivability. However, the Government then under Tun Dr Mahathir, requested other sectors to assist the national carmaker but extending (similar to the developed nation) a ‘Hire-Purchase commission’. Hire purchase commission is a payment to proton dealers for marketing the packages offered by Banks and financial institutions. The hire-purchase commission accounted to 2/3 of our total margin. Profit margin per car was only 1/3. This Hire-Purchase Commission that was first extended ONLY to Proton dealers were open to all car dealers of other makes in the early 1990s and that was when I believe the benefits were abused. In the early 2000, the Central Bank revoked the hire purchase commission but later regulate and impose a ceiling. Proton dealers profit margin per car was never revised (when the hire purchase commission was revoke) though it was earlier kept low with the support of the hire-purchase commission. Todate, there were negligible revision of our profit margin though our rental has increased more than 60% since we commence operation and had spend almost RM1million in total for three times compliance to Proton Corporate Image since 1996.

With the increase in the operating cost such as Petrol, electricity etc… the dealers will incur more losses. All the increase in the operating cost are absorbed by the dealers.

Laily Rahman: Have PEDA written to the Authorities since this is of national interest?

Armin Baniaz: Yes we have. We have written twice to the Governor Bank Negara for the hire purchase commission with a detailed independant study by Ernst & Young benchmarking the dealer's responsibilties pertaining our roles as the agent to the bank and our remuneratoin (hire-purchase comminssion). The Benchmarking was done against developed and neighbouring countries like Singapore, Thailand, United Kingdom, Australia and japan. We have also written to the Prime Minister?

Laily Rahman: What was their response?

Armin Baniaz: there were no response whatsoever from either the Central Bank Negara Governor (or its officials) or the Prime Minister (or its office) and we will write again soon.

Laily Rahman: Do you have any forecast for the next 6 months.

Armin Baniaz: I do not have the overall forecast. Proton would be in a better position to forecast. However, currently most of the model variances are on waiting list!
But overall we expect a total of a minimum 13,000 deliveries per month or an equivalent to approximately 30 cars per dealer that is still not our break-even sales.


Laily Rahman: Do you have any suggestions to ensure sales remain good?

Yes, since automotive is neither the buyers market nor a sellers market but instead BANKER’S LED market, the government (ministry of finance/ bank Negara) should stimulate the automotive sector by allowing the public to restructure their hire purchase refinancing to ensure that the public disposable income that is now affected by the petrol price increase (as well as all other essential expenditure price increase) can afford to pay the monthly repayment. When the public can afford to pay the monthly payment for their cars (given the increase in price for essential expenditure), the bank’s NPL will be reduced and Proton customer risk profile will be adjusted.

PEDA understand that Proton’s customer were categorised as high risk due to fraud loan, big loan default rate or high NPL. But the major cause of the loan default rate, as well as the NPL was the syndication by unscrupulous brokers and sales man. There were previously no measures or supervision of the sales personnel appoinments. PEDA together with Proton had taken the necessary (via centralised registration of all salesman) step to eradicate this practice but if we want to wait for proton customer risk profile to be re-adjusted by the market then we will have to wait for another year or even a few years.

WITH GOVERNMENT ASSISTANCE, THE CUSTOMER RISK PROFILE CAN BE ADJUSTED NOW TO ENSURE THE CUSTOMER CAN STILL BUY PROTON CARS AND PERHAPS EXTENDING THE LOAN REPAYMENT FROM THE CURRENT 9 YEARS TO 12 YEARS TO REDUCE THE HIRE PURCHASE LOAN REPAYMENT AND MAKE IT MORE AFFORDABLE TO THE PUBLIC.

Having taken the necessary step to register all salesman in the network, the bank can rest assure fraud, default rate and NPL rate will be drastically reduced if not eradicated.
If the bank can adjust the customer risk profile now, than our sales can increased by at least 30% (via reducing the current 60% rejection rate due to customers with high risk profile and affordability if loan period is extended)

When PEDA did the ‘gulur tikar’ statement last year or two, our predicament was on the same basis. Yes the uncertainty pertaining to the foreign partner (eg Volkswagen) affected our sales because the pubic were waiting for the newer model line-up expected from the joint venture. BUT the main caused of the decline in sales were due to the Bank’s stringency (Customer RISK PROFILE) and the bank’s valuation of the second hand car in anticipation of the new ‘foreign model’.
SECONDLY, because of historical syndicate to falsify customers documents and the HIGH NPL, Proton customer’s risk profile are higher than other model makes. This will happen again NOW when customer simply cannot afford to pay their hire-purchase loan repayment due to less disposable income as a result from most essential expenditure price increase.


Laili Rahman: Have you heard any complaints/comments from customers regarding new fuel prices? What do you do to explain to them.

Armin Baniza: yes everyday… though the price increase is inevitable and beyond our control (as a citizen), we can mitigate the price increase through changing our driving behaviour, proper car maintenance as this will promote better fuel saving as well as restructuring our finances. For example, refinancing the car or change car to a more fuel saving car.. such as Proton Savvy// 24km per litre- recorded in the Malaysia Book of record. This is important as not only the fuel price is increased but everything from electric, water, chicken etc…. a short term measure is to ensure we can maintain our monthly disposable income.

Laili Rahman: Thank you Armin.

Syed Zainal Contract as PROTON MD should be renew or terminated...?

The main question we should ask, before getting all emotional in speculating the renewal of Dato Syed Zainal contract as the Managing Director of Proton, is what he did or is doing during his tenure that will expire end of this year?

To answer this question, we have to ask another question, what did he inherite when he accepted the post as the Managing Director of Proton.

I will avoid making statements that is not relevant to me as Proton Edar dealers and as the Deputy President of Proton Edar Dealers Association Malaysia.

I am of the opinion (personal opinion) as a dealer (since 11 years ago) long before Syed Zainal's appointment as the MD of proton, that the MD of Proton's main responsibility (in the eye of the sales dealer & the public since we are the front line interacting daily with the public) is to ensure prompt deliveries of Proton cars to the dealer and hence the customer. Secondly, the quality of cars that is delivered and finally, the profitability of the dealer's network.

Before Syed Zainal's tenure, Proton's ex-stock level was so high that even if Proton factory ceased to operate (without producing new cars), there will be a healthy flow of cars for at least 4 months. NOW, ex-stocks were liquidated and almost ALL Proton variance are on waiting list.

Before Syed Zainal's tenure, there were approximately 400 Proton Edar branches and authorised sales dealers network in Malaysia selling in total approximately 140,000 cars per annum. NOW, it has been rationalize to approximately 300 branches and authorised sales dealers. Of course, i am still angered and still pursuing meeting the Prime Minister, Deputy Prime Minister, Cabinet Minister, the government backbenchers and if need to, even meet the opposition political party for Proton to CLOSE their own branches (from selling Proton cars) and mould and groom their dealers who are pure entrepreneur to perform (hence, even a Ministry of Entrepreneur existed ONLY in Malaysia for the same reason) and in line with the second Industrial Masterplan for entrepreneur development. Why should the tax-payer pay to sustain lose-making Proton own branches for their Corporate Image sake. Proton Edar sales dealers, even without any customer relation training or salesman training, can take better care of the customer as it is their own business. (see my earlier blog-posting).

Before Syed Zainal's tenure, Proton manufacturer's warranty was only for 1 year or 2 years for some models. NOW, Proton manufacturing warranty is extended to a total of 5 years signalling confident of proton management on their own products.

Before Syed Zainal's tenure, customer will have to wait for a warranty claim and the onus to claim warranty falls on the customer. hence, customer has to ensure and prove that their car was properly serviced at proton authorised workshop etc etc.... NOW, Proton even have a "Proton iCare" department to handle and attend to any customer's complains from warranty claim to grouses of proton customer stuck in traffic jam.

Before Syed Zainal's tenure, there were no sales man tagging or registration hence inviting unscrupulous appointment of sales man that led to many syndicated or falsification of customer documents that eventually place proton customer profile at a higher risk than other brand cars. NOW, all sales man must be registered centralise and any irresponsible act of any salesman, will lead to the blacklisting of the respective sales man in the Proton Network.

Before Syed Zainal's appointment, Proton never seek dealers feedback or opinions on the launching of new proton cars when the last end of Proton value chain is actually the dealers. Certainly, Proton dealers who interacts daily with the public have some important comments to relay. NOW, dealers' feedback and comment are taken seriously and dealers are invited to participate in most discussions pertaining to the development and the launching of new model variance.

Before Syed Zainal's appoinment, khazanah, Proton Board of Directors all wanting to sell proton to a foreigner or the much speculated Volkswagen. As a Malaysian as well as a proton dealer, i am very proud to sell Proton cars and not a stupid re-badge Mitsubishi or re-badging of daihatsu into Perodua or Kia into NAZA. Indeed, Proton Waja, Gen 2, Savvy, persona, the new SAGA, soon to be launched MPV are all MALAYSIA PRODUCT. There is no pride in assembling cars and rebadge them to call it a Malaysian car. we are now in the new millenium, re-badging stories in the early 1980s... If we still looking at rebadging cars, then we will not move forward. I never agree with Volkswagen or foreign company taking control of Proton. The truth is, Khazanah or Proton wanted Volkswagen for their under-utilised Tanjung Malim plant. Even if Volkswagen is localised, the price of VW cars will still be above RM100k, and that wont help dealers selling extra cars. Both Proton & Perodua makes up the biggest market share because of car price variance below RM40,000. So why should the dealers be bothered whether the VW deals materialise or not. It is only to make full use of Proton's investment in Tanjung Malim. The economies of scale from VW committed production of 350,000 cars per annum by may provide some economies of scale to the Proton production and make Proton more profitable but what the dealer want is a more value for money car and better quality. It makes more economic sense to mass produce all Proton cars (not the re-badge VW of foreign cars) and target exponential sales for export market (hence, what Syed Zainal is doing now!). Nonethelesss, Proton already have Lotus for technology. Proton factory is one of the most hitech factory available worldwide (but way underutilised) and Proton has the biggest sales network domestically (if properly rationalize, Proton network can be the strongest network!). What we actually need is QUALITY CARS and AFFORDABLE pricing!!! Proton Iswara.. a 20 years old car, was still defective in many aspect, 20 years after it was launched. NOW, PROTON REMAIN A MALAYSIAN COMPANY and proton quality has improved drastically. Even the smallest or the slightest problem as per the Proton Savvy Re-call was for nothing BUT to maintain Proton's quality! The new SAGA and Persona are both affordable and evident from the 40,000 bookings still pending deliveries for each model.

These are factors that is evident and what we see (from dealers' & customer perspective) as effort by Syed Zainal and his team. For those who knew me, they will know that i always argue, debate and never blindly supports (especially previously with TIFLI, Teo Aeng Kyet, Tan Ghee Chow, Dato Donald Choo and Dato Razak Dawood, and now with SIDIK) BUT i strongly believe in Syed Zainal and his team's passion, enthusiasm and humbleness in making sure that Proton stay and remain profitable.

So, my verdict as one of the longest serving dealer (since USPD days) and the Deputy President of Proton Edar Dealers Association Malaysia, is a MUST for Syed Zainal's contract to be RENEW & EXTENDED. Though i have to say that i am still in strong debate with him to close Proton Edar's own-branch!!!! Without the branch, Proton may impose any requirement to increase the dealer's requirement or any upgrading for corporate image but until then, please re-engineer proton own branch (as per my earlier blog), rationalize the dealer's network then dealer may consider further investment on Corporate Image. Now, with shortage of all model variance and an average sales of 30 cars per dealer per month (if lucky, otherwise an average of 20 cars per dealer), any upgrade of the showroom or corporate image will not increase the dealer's car sales. It is evident from previous CI upgrade. Honda dealers invested almost RM1million to Rm3million in their showroom and corporate image. BMW dealer spend more than RM30million in their 3S building (latest being Ingress showroom near Penchala) but they can do so, because with 80 car sales average per month, their return of investment (on the millions of ringgit spend) are attractive and lucrative. With the current overcongestion of Proton dealer's (in the market with an average car sales per dealer of 20-30 cars per month.... and with proton net profit of only a few hundred ringgit per car... hihii

Proton & Petrol Price increase

When the government announce the petrol price increase a few media called me to comment in my capacity as the Deputy President of Proton Edar Dealers Association Malaysia. The first question that they asked was how the dealer's recovery from the downturn... I assume the downturn the media are referring to was the proton dealers 'gulung tikar' headline last year.

Many believe the downturn of Proton Edar dealers was caused by the downturn in the automotive industry pursuant to the announcement and introduction of the National Automotive Policy. yes, true to some extent it does hold some truth. Many too, believe that the downturn of Proton Edar dealers was caused caused by the uncertainties of a foreign partner.. ie Volkswagen. Perhaps that holds some truth too. Many also believe that the downturn of Proton Edar dealers was as a consequence of the poor quality of proton cars. these are all made-believe statements.

The truth is the national automotive policy does not have a direct significant impact to Proton sales but instead, the price and value of the second hand car market was badly effected from the introduction of the NAP. In my 11 years experience as a Proton Dealer, 7 out of 10 customers will want to trade-in their old car (to buy new Proton cars). But this too is not a major consequence of the NAP. Automotive sales are neither the buyers market nor the sellers market. Automotive sales are the BANK'S market. If the bank value the second hand car (or end-finance a higher loan amount) favourably, the used car dealers will be more incline to take the trade-in higher and vice-versa. If the bank so deemed a set of customer profile or a certain car brand, as high risk profile or high risk brand, then the loan approval will be more stringent. thus, the Bank are the culprit of the automotive sales downfall or the dealer's downturn.

Whatever make-believe of Proton Edar dealers downfall was a cover-up of Proton's previous management mistake to over-appointed the dealers as written in my earlier article. Political move to terminate EON as a super-dealer or distributor led Proton Edar to appoint more than 100 new dealers that led to the current predicament. Now, EON operation stay and the Proton authorised sales dealers network is over-congested. A simple rule of nature.. less people more share.. more people less share.. the real fact is.. too many people, there is nothing to share. except losses.

The media continue to ask me if the petrol price increase effect further the predicament of the dealers? or another way to look at it, will the petrol price increase effect the sales of Proton cars?

My answer is NO because Proton is a people's car, with cylinder capacity ranges from 1.1, 1.3 and 1.6, the car fuel consumption is fairly economical. Nonetheless, Proton Savvy is in the Malaysia Book of Record for the best fuel consumption with 24km per litre... yes call me to place a booking now (hihiii..). mind you, even Savvy is on waiting list now...

Thailand historically and currently recorded a higher petrol price (compare to Malaysia) and Thailand too historical and currently has a lower per capita income, or lower per household income. However, Thailand has always recorded a higher domestic passenger car sales. so, the impact of car sales will be negligible if not effected by the increase in the petrol price.

The petrol price increase will affect the disposable income of lower income earner. with toll, monthly car maintenance and now petrol expenses almost double up, the society may experience alot of job-hopping or people may change jobs nearer to their resident or they may change their job to where there public transportation is avail. customer behaviour may change but there will be less impact on car sales.

Henceforth, Proton dealers will not be badly effected with the petrol price increase but will still incur major losses monthly if the sales network is not consolidated or rationalize soon. the consolidation and rationalization in my recommendation, is the re-engineering of all Proton Edar own-branches as per my earlier article.

Extreme Measure: CLOSE ALL PROTON & EON BRANCHES

For a start, since my tenure as an authorised sales and service dealer for Proton Edar for more than 11 years and as the Deputy President of the Proton Edar Dealers Association Malaysia, i have seen 7 appointments of Proton Edar Chief Executive Officers. the first being Datuk Rashid Rahim, then En Abbas Mehad, Acting CEO Stanley Tan, Datuk Maruan Said, Ahmad Tifli, then back to Datuk Maruan Said and now the latest is En Shukor.

What do they all have in common? They have new ideas and every time a new CEO was appointed, policies will change. Considering that Proton Edar receive new CEO appointments almost on average every less than 2 years, new policies introduce were never fully implemented but with every new appointments of CEOs, there will be new appointment of dealers... (to some extend, that contributes to the over-representation of Proton dealers) except for the latest CEO Shukor who are still new. Every time policies were changed, we, the dealers will have to change the song we sing for better or worse. but in all those new policies that were either replaced or introduced or re-introduced, there was one policy that never change: The roles and responsibility of Proton and Proton Edar. Since Proton Edar is a subsidiary of a government-linked company (or GLC), it should pursue the government's main objective to constantly develop new Malaysian entrepreneur via its vendor or authorised dealer programme (inline with the 2nd Industrial Masterplan)

To the contrary, there were no entrepreneurship development program but instead a cognizance approach telling dealers to sell all the cars that their own branches are having difficulty in selling or they will be terminated... ok that may sound abit crude but it is in that note.

The roles and responsibility of Proton & Proton Edar should be re-looked upon if we want to be competitive and become a global manufacturer. Currently, Proton is the manufacturer and Proton Edar being the sole marketing arm and distributor. As both the manufacturer as well as the distribution arm of Proton cars, the quality production and quality deliveries of proton cars to the customer may be affected when the quantitative sales target is juggled with qualitative deliveries. Proton want numbers and customer wants better improved cars.

I am not the best expert but I believe Proton should focus its main objective in R&D to constantly introduce newer model and target a higher exports worldwide as well as improve and produce quality proton cars to compete with other brand whilst Proton Edar (the subject of this article) as the marketing arm of proton should focus in upholding the Corporate Image and protecting the neglected Patent rights of "proton' (now all unauthorised used cars and unscrupulous workshop are all displaying and bearing proton logo) as well as improving the Customer Satisfaction Index via attending, managing if not eradicating all problems complained by the public. This can be attain through re-engineering Proton Edar's owned-branches.

Currently, Proton Edar owned and manage 31 branches, 197 proton edar dealer and a total of 106 EON own-branches and EON dealers. Proton MD Datuk Syed Zainal had constantly reiterate that he will reduce the number of dealers in the network to less than a total of 250 dealers (now there are 324 dealers and branches including EON).

Tengku Mahaleel had over-estimated his influence to terminate EON as a distributor as well as EON dealers. In anticipation that he was able to terminate EON, and in fear that Proton sales will suffer without EON, Proton Edar had appointed more than 100 new dealers a year before his contract expires. with the new dealers being appointed, EON continues to be a distributor/super dealer to Proton doubling the number of dealers in the network to almost 400 Proton edar owned branches and dealers including EON.

With 400 authorised dealers and proton's own-branches in the network, the average that any dealers can sell per month is less than 20 cars with Proton & EON owned branches getting more cars per branch. Perodua has less than half the number of dealers in their network and is selling more than Proton total car sales per annum.

Since then, for the past few years, appointed dealers had exhausted its working capital to stay afloat. with an average of less than 20 proton car sales per month, each dealers will incur losses between RM10,000 to RM30,000 per month depending on the location of the showroom. The lackadaisical sales per dealer was not the fault of the dealers as the market could only take a maximum number of new proton car sales per year. Coupled by the absent of new sellable product range as well as constant productions of cars, the total sales cannot be further improved.
The appointments of dealers cannot be reversed because of the money already invested. The market was congested with dealers due to the over-appointment of dealers by Proton Edar and these dealers cannot be penalise for being appointed as the appointments were made by Proton Edarthemselves. The 'over-appointment' was a mistake made by Proton Edar that resulted in dealers non-performance (due to congestion of dealers in a stagnant market). Dealers were not at fault for not being able to meet the sales target set by proton because the market itself cannot absorb the targeted sales given for all the dealers.

Many think and believe that Proton dealers are parasites (thanks to sean-the-man.blogspot) and a money generating business and those who are not a dealer constantly write and apply to both Proton and Proton Edar to become a dealer. To run a Proton sales dealership comfortably, a minimum working capital of RM3million is required to sell an average 50 cars per month. with an approximate net profit per car after deducting all commissions at less than 2%, it is doubtful that a good return can be attain from the RM3million working capital invested, hence PEDA 'gulung tikar' press statement. Those who are already a dealer of Proton Edar, there is no choice and no exit plan as hundreds of thousand (if not millions) had been spend in the dealership. Those dealer who can afford to write-off the investment, has already surrendor their dealership.

Thus, what will be the extreme measure requires to maintain a healthy network for the benefit of the public? especially with the merger talk between Proton Edar and EON.

i suggest and recommend the followings: CLOSURE OF ALL PROTON OWN-BRANCHES AS WELL AS EON'S BRANCHES (if the merger talk materialise) and the main objective of Proton and Proton Edar can be summarize as follows:

1) Proton as a manufacturer should focus entirely in the R&D of new cars, improve the production quality of its existing cars and target export as the dominant market for Proton cars... hence what they are doing now.

2) Proton Edar as the sole marketing and distribution arm of Proton should focus their resources in the enforcement of Proton patent rights and uphold Proton corporate image. Proton Edar should eradicate all unscrupulous and unauthorised usage of Proton brand name. There are currently NO ENFORCEMENT on the usage of Proton branding.
Proton Edar should listen, attend, resolve and eradicate any problems complained by all customers. To eradicate all problems attached to Proton cars, and further improve its customer satisfaction index, proton manufacturer's warranty should be used as an incentive to the customer rather than punitive. Any warranty claim by any customer should be automatically approved (if it falls under the manufacturer's warranty period) unless otherwise proven. Coupled by strong after-sales network, the public will have more confident in Proton cars.

To ensure these objectives are achieved and without prejudice to the over-appointments of the dealers, ALL Proton & EON's (after the merger- if it really happen) own-branches should be closed and re-engineered to be:

1) a centre for Proton car display and test drive to enhance Proton Corporate Image
2) a centre for warranty and after sales service centres
3) centre for customer complain
4) a centre for development of dealers/entrepreneur development programme.

The sales of new proton cars should be left to individual entrepreneur whom had invested their life savings into the business. Historically, Proton produces what they deemed fit for the public and forced its sales network to sell whatever Proton can produce. The dealers have no choice but to pay and keep in stocks all cars that proton allocated to them. Dealers cannot refuse any cars or risk not having any cars to sell at all. Hence, the actual customers demand for cars are artificial. Dealers interacts daily and regularly with the customer and being the last end of Proton value chain, our feedback will be the closest to real customer's demand . In the absence of Proton's owned-branches, the sales network will be independent from Proton and dealer's feedback will be more constructive to meet the customer's demand. With their life-savings in the business, dealers are more sales-oriented and will only give productive feedback so they can sell more.

Thus, before any dealers who were appointed by Proton are terminated. Proton should first consider closing all its branches as it is also doubtful that their branches can even break-even (on a level playing field as the dealers).