Overhaulin'

Malaysia! Proton merger with Perodua?.......Is it good?

For whom is it good? Malaysia has about 19 million registered vehicles. Does that tell you something? Well, Proton is in the reds and Perodua has a very good account balance-sheet. Proton just needs the money, so they have initiated the merger and asking government support to push for the merger. Proton Managing Director is very cunning to say that it is in the best interest of the motor industry, suddenly he has become an expert on economics. Proton management is weak and incompetent as far as the Rakyat is concerned. Their after sales service is poor. Many customer complaints of defects and poor quality by customers is ignored till they find it difficult to build a car with international quality, so the poor sales to export markets. On the other hand Perodua still holds the no 1 spot for market share, they have no interest in the merger at all. If I am not wrong, Daihatsu holds a major stake ( 51%) in Perodua. So Proton asks the government to help. Perodua must not merge with Proton. The loser will be Perodua with a good track record and a good bank balance. The government should not interfere or it will affect future foreign investors into this country. Business must be left to the businessmen and not the government. Proton has to find its own ways to increase its capital. Adamaxis! You did not answer the question but giving lecture on motor industry economics. Apa la you!!

Public Comments

1. Proron & Perodua are establishments with different objectives. One is mainly government owned and the other mostly private. If they are to merge, Protorn should be privatised ...no - it should be privately own...and the merged body should be managed by the private sector with absolutely no interference from the UMNOputras .....then quality cars can be produced for the local and the export market.... the public benefits....
2. i dont think it is a good idea but it is up to them lah why worried ,since it is not going to waste taxpayers money
3. We all know that 25% Perodua share is own under Daihatsu which is a Toyota subsidiary and Toyota as parent company own 51% in Daihatsu...for now Perodua will not make 100% design and manufacture them self...unlike the Gen2 from proton which they make 100% from production to manufacturing...be proud Malaysian!!! Yes of course Perodua are no.1 in the market for now...and the quality is certainly improve after Toyota influent, but I don't think that Toyota management will allow Perodua to compete with them in quality... Meanwhile, Proton still need a lot of R&D to improve their product...and not just send all the good car's to oversea market...Malaysian should be their priority because this is their base, the castle... With merging with Perodua...proton have to ensure the value-able and most sensitive information not leaking to other country manufactures. This is actually a competitive market after all.
4. This is badddd economics. Just remove AP and lower the price of cars so that everyone can afford and given a choice to drive branded cars just like in many countries - its our rights