LOTUS AND MV AGUSTA WAS NOT A MISTAKE.

Image from Malaysia-Chronicle

I read with interest Mohd Khairil Azman posting in FMT at HERE that had gone viral and I made references in this article to his 3 questions but first let us go back to the fundamental of the national car project.

It is interesting to observe how Malaysia national car projects had evolved from first the Perusahaan Otomobil Nasional Berhad, PROTON in the early 1980s and then Perusahaan Otomobil Kedua Berhad (Perodua) in 1992. Both national car projects were mandated to achieve 1 clear objective; to be able to design, develop and produce our own car as part of our industrialization program to achieve the vision 2020.

Proton's journey has always been in that direction, Perodua which was also Tun Mahathir's project that was approved by cabinet in 1992 was given the same mandate as Proton. This was clearly stated in Tun Mahathir's speech as the Prime Minister then, when he launched Perodua manufacturing plant in Rawang; 2 years after the cabinet approves the 2nd national car project. Tun Mahathir's speech can be read at HERE.

With both Proton and Perodua non-competing in different category, there were sufficient sales volume for both companies to slowly acquire technology and engineering capability to achieve the government's vision and objective. With the proceeds received from those sales, Proton reinvested by acquiring technology through Lotus and MV Augusta and build its RM1.8 billion Tanjung Malim plant.

Proton acquired Lotus in October 1996, a year before we were hit with the worst recession in 1997 which halted whatever plan Proton had for Lotus. When the economy recovers, Lotus engineering has been part of Proton cars ride & handling but not many had driven the lotus to actually feel it in Proton. The Lotus engineering too is the catalyst behind the new engine nicknamed Volcano that was recently launched in January this year. (More information at HERE). Lotus was acquired for its engineering capabilities as well as support and it has contributed to the development of Proton cars. Whether Proton did have a turn around plan for Lotus cars itself remain unknown when the architect of its acquisition, Tan Sri Yahya Ahmad died of helicopter crash (more information at HERE).

LOOKING FOR A CAR WORKSHOP? This Local App Will Find One That Won't Overcharge You

This article was first published at Says.com by John Lim (On behalf of CarBengkel team, thank you John & Says.com)

Looking for a reliable car workshop is not an easy feat in Malaysia. Many car workshops are known for overcharging and providing poor quality parts.

 Image via Auto World

Remember the last time you were overcharged for a repair? Yeah, me too.

The good news is you don't have to fret anymore! Car Bengkel, a local app set up in collaboration with the Malaysia Automotive Institute (MAI), aims to help motorists survive this ultimate road challenge.

KHAZANAH NASIONAL TO BE BLAMED FOR PROTON'S DOWNFALL

Dato' Abdul Rahman Dahlan said in an article posted by the Star, (an extract of which, was posted at the bottom), that Dr M must answer for Proton's colossal failure; I feel the need to clarify.

1. Proton was the no 1 car maker when Tun Mahathir was the Prime Minister. 

2. Proton went downhill under Tun Abdullah Badawi premiership whom was also the Minister of Finance, the holding company of Khazanah Nasional whom was at that time, the biggest shareholder of Proton Holdings Berhad. Dato Mohammed Azlan Hashim was appointed by Khazanah Nasional as Proton Chairman and was tasked to remove Tengku Mahaleel as Proton Managing Director.
3. Dato Mohammed Azlan Hashim succeeded in removing Tengku Mahaleel when his predecessor, also a Khazanah Nasional appointee Dato Abu Hasan Kendut had failed. When Tengku Mahaleel was removed, he left Proton with RM4b in cash reserves.

4. Proton lost to Perodua as the number 1 car maker under Dato Mohammed Azlan Hashim when Khazanah Nasional was the biggest shareholder and in control of Proton.

5. Khazanah Nasional, via Dato Mohammed Azlan Hashim had reversed Tengku Mahaleel's decision to terminate EON as Proton distributor when EON refused to contribute to the R&D funds requested by Proton after the government stopped giving R&D grants for proton development. 

6. This resulted in a sales network with more than 400 dealers representation in Malaysia. This was the most destructive decision that weakens the once a strong dealership network and the start of a series of catastrophe.

SHOULD THE GOVERNMENT BAIL OUT PROTON?

Proton Edar Sdn Bhd (PESB) has appointed 52 years old Rohimee Shafie as its 11th Chief Executive Officer. Most of Proton Edar Dealers Association Malaysia (PEDA) committee members have been around since the first Proton Edar Sdn Bhd (formerly known as USPD) Chief Executive Officer, Dato Rashid Rahim. As PEDA President, I have served under 6 of the former 10 CEOs and have served all 10 CEOs as PEDA committee member, Vice-President and Deputy President. We have also been under former Proton Holdings Berhad (Proton) Managing Director Tengku Tan Sri Mahaleel, Proton Joint COO Dato Kisai Rahmat & Dato Kamarulzaman Darus, Proton MD Dato Sri Syed Zainal Abidin, Proton CEO Datuk Lukman Ibrahim and Dato Harith Abdullah. PEDA welcomes and look forward to work closely with Dato Ahmad Fuaad as the new Proton CEO.

We have seen various policies that destroys the dealers network and policies that really improved our total sales. Unfortunately, everytime a new CEO was appointed, we have to start the same bad and the good policies all over again. Ironically, arrogance and ego took the best of any newly appointed. Despite the promises made by Tan Sri Khamil Jamil when DRB-Hicom first bought over Proton, to be dealercentric, in reality Proton & PESB Management took the dealers network (except for a few favorite dealers with special treatment), akin of a thorn in a bed of roses. With plummeting sales (up to the point where dealers can hardly break even), stricter parameters were introduced restricting further dealers whom are hungry for business, to do sales.

Since DRB-Hicom took over Proton in 2012, Proton car sales has been downhill from a total sales of 141,120 in 2012, 138,753 in 2013, 115,782 in 2014 and last year 2015, Proton hit its lowest sales record of only 102,175.

Personally, I don't think DRB-Hicom management style works at Proton. There is no empowerment and decisions took longer than in the past. Reaction and responses to market sentiment is poor and do not get me started on the production deliverables of cars to be delivered to Proton car buyer. The mismatching of customers order to manufacturing production worsens on the backdrop of non-availability of cars for the dealers to sell. The communication channel from top management to the middle management and to the dealers were distorted. Whatever that was resolved and discussed between PEDA and top management was not properly minuted and communicated to middle management as well as the dealers network. With an already over congested dealers network, the addition of 29 Suzuki dealers adds on alot more burden.

MAI-CARBENGKEL INTRODUCE YOUR FAVOURITE WORKSHOP CAMPAIGN

CYBERJAYA, 18 JANUARY 2016. “The campaign was launched to recognize trusted workshops in Malaysia as part of MAI’s effort to modernize and improve the services in the automotive aftermarket sector”, said Dato Mohamad Madani Sahari, Malaysia Automotive Institute Chief Executive Officer.  “There are RM5,000 prizes to be won by the public and as well as the car workhops.

1)            The Grand cash prize RM1,000 will be awarded to the public that successfully introduced the most workshops. The first runner-up will win Cash Prize RM500 and 2^nd Runner up cash prize RM300.

2)            The public that shared his/her selfie infront of the referred workshops on either Facebook or Instagram with a hashtag: #carbengkelworkshop and have the most like will win cash prize RM300 each (Facebook and Instagram), RM200 for 1^st runner-up and RM100 for 2^nd Runner up.

3)            Workshop that is referred the most on facebook and Instagram will win RM1,000 advertising credit on CarBengkel.

4)            There are many drivers in Malaysia with their own trusted mechanics and workshops and there are more drivers, mostly ladies whom are completely ignorant on where to bring their car for service or repair. With this campaign, we can enroll more trusted workshops in addition to the the 2,800 workshops that had already registered with CarBengkel mobile application for the benefits of other drivers.

5)            There are 15,000 car workshops registered with local authorities nationwide servicing more than 23 million vehicles on the road.

6)            Public can introduce any car workshop, tyre outlets, accessories shop as well as tow truck.

7)            All workshops introduced will received a sponsored CarBengkel training on how to increase traffic & profit and a credit worth RM1,000 for advertisement on CarBengkel.

8)            Public can also refer any OEM authorized workshop such as Proton, Perodua, Toyota, Honda, Nissan or any other OEM authorised workshops to cater to more than 2million cars on the road that is still under the manufacturer’s warranty.

9)            This campaign is launched in conjunction with the forthcoming Chinese New Year festive season as we expect many will visit the workshop for their car maintenance and repair before going on holiday. This is the best time for the public to refer the respective workshops.

10)         CarBengkel mobile application provides a more convenient way to service, repair and/or obtained a cost estimate for any repair or spare parts. This will enable the public to save time, reduce expenses for car maintenance and have a better experience dealing with mechanics and workshops.

11)         In 2015, CarBengkel won the prestigious VISA Retail Innovation Award in December, selected as Top 7 best startup at the SME Innovation Challenge and won Top 5 best at the Echelon Thailand.

12)         Expenses for car maintenance are never budgeted by any household unlike housing and car loan and can be a big burden to the public.

13)       Public only need to download CarBengkel App which is available in three languages (Bahasa Malaysia, English and Mandarin) and is compatible on both Andriod and iOS handphones and introduce their favourite workshop by tapping on referral button in the app.

14)         The workshop will then receive an SMS with a link to download. The workshop needs to tap on the download link and follow a simple step by step guide to register. Once the workshop had registered, the referral will get a point.

15)         Those with the most points for successfully referring the most car workshop, tyre outlets, accessories shop or tow truck combined, will win RM1,000 cash reward.