PEDA FIRST ENGAGEMENT WITH NEW PROTON CHIEFTAINS

 Proton Edar Centre of Excellent 15 April 2016

15 April 2016. Proton Edar Dealers Association Malaysia (PEDA) had our first engagement with the new Chieftains of Proton. The meeting was chaired by Proton Holdings Berhad Chief Executive Officer Dato Ahmad Fuaad Kenali, Deputy Chief Executive Officer Dato Radzaif Mohamed, Proton Edar Chief Executive Officer Rohimee Shafie, heads from manufacturing and Proton Edar new heads of departments reappointed after some internal restructuring.

The meeting was held at Proton Edar Centre of Excellence in Shah Alam at 3pm. PEDA met for a short pre-council meeting at 2pm shortly before the scheduled engagement while the Chieftains received visits from the Minister of International Trade & Industry, Dato Sri Mustapa Mohamad whom was accompanied by Dato Sri Idris Jala, Dato Sri Wahid Omar together with other officials from the Ministry. 

It was heart warming to see all the important stakeholders at Proton but we could not help but to miss Tun Dr Mahathir Mohamad whom was always at Proton the whole day for at least 3 times a week during his tenure as the Chairman.

The engagement was held at the Board room and PEDA committee took our seat at the same spot where we were always seated for more than a decade. Tuan Haji Razak Aziz, PEDA Vice President was right to highlight our corner of the table were seated by the same people, same dealer while the chair and those in the opposite table kept changing.

We cant really speak on the details of our engagement but we can share our first impression of the new management. All the new Chief were humble and seek to understand the network's predicament. A trait which is scarce of late but a few in the board room were still on a defensive mode. A few of inherited policies were immediately reverse to enable dealers to began maximizing their sales (thumbs up).  Dato Ahmad Fuaad was pro-actively taking notes with his thin red Lenovo notebook while others were armed with papers and pens. Coffee was served with popiah, curry puff and a kueh.
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KERETA PROTON TETAP MENDAPAT SAMBUTAN

 Utusan Malaysia 12/04/2016

KUALA LUMPUR 11 April - Persatuan Pengedar Proton Edar (PEDA) berkata, sambutan orang ramai terhadap kereta-kereta Proton adalah masih tinggi, dengan setiap pengedar mempunyai sekurang-kurangnya 50 Surat Akujanji (LOU) daripada bank-bank untuk pembeli kereta.

“Jualan kereta Proton sebenar­nya masih laris. Model Iriz, Preve, Exora dan Persona terutamanya, masih menjadi pilihan ramai walaupun Proton diselubungi isu negatif pada masa ini,’’ kata Presidennya, Armin Barniaz Pahamin kepada Utusan Malaysia di sini hari ini.

Malah kata beliau, jualan dijangka rancak dengan pelancaran tiga lagi model baharu Proton termasuk Proton Perdana yang gambarnya sudah tersebar meluas di dalam Internet.

Bagaimanapun ujar beliau, pihaknya berdepan masalah iaitu bekalan kereta yang rendah dan polisi dalaman yang pelbagai sehingga mengakibatkan jualan kereta terbantut.

“Jualan kereta semakin teruk disebabkan oleh tiga perkara iaitu da­sar-dasar Proton Edar yang lebih ketat telah membantutkan usaha pe­ngedar untuk menjual kereta; bekalan ke­reta yang per­lahan dan tidak ada bekal­an tepat iaitu model atau warna yang dipilih pembeli,’’ ujarnya.

Semasa zaman kegemilangan Proton katanya, pengurus dan pengurus besar boleh membuat keputusan yang membabitkan jualan kereta asalkan jualan laris.

“Keputusan boleh dibuat semasa mesyuarat PEDA dengan pengurusan tengah. Sekarang GM dan CEO pun tidak ada kuasa. Kena jawatankuasa yang bersidang mungkin sekali sebulan yang putuskan. Apabila jawatankuasa bersidang, dan telah mendapat kelulusan, pasaran telah pun dah berubah,’’ katanya.

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.