White Paper on Proton & its negotiations with transnationals, 20.4.2007.
DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw presses the Government to present a parliamentary White Paper on the national car, Proton, and its negotiations with multinationals such as Volkswagen and General Motors, so that the public will understand how the Government intends to solve the problems of Proton. Will it be a joint venture, a merger or other arrangements?
Dr Tan made the call on 17 April, 2007 when he took part in the Supplementary Supply Bill in Parliament.
Today, Proton is in a dilemma. Since 2005, its sale has gone down rapidly and sales agents may fold up, affecting the downstream automotive industry. Hence, the Government must present a parliamentary White Paper on Proton and its negotiations with transnationals, as well as the ways to make it competitive within and outside this country. In an open market, the Government cannot protect Proton forever.
Over 20 years ago, I stressed in this August House that Malaysia had a relatively small population, which would be unable to sustain a national car. Even if we developed the downstream automotive industry, it would still not be easy.
The population of this county is 26 million, whereas that of the United Kingdom is over 70 million. Foreign firms have virtually bought all the British car manufacturers including Rolls Royce. Moreover, British technology is reasonably high. Now, US companies such as General Motors and Ford are reinventing themselves to overcome the changing world.
According to media reports, in the first nine months of Proton's financial year 2006/2007, its sales amounted to RM3.66 billion with losses of RM 608 million before tax. In 2006, it sold 115,538 vehicles, compared with 155,118 in 2005, a drop of 30.4%.
Generally, the decrease in the car market is 15%, but it is 30.4% with Proton. The 400 Proton agents may have to fold up. If the situation deteriorates, how many will go down? Some people predict that 70% will face bankruptcy. What will happen to the downstream automotive industry? The vendors?
Dr Tan Seng Giaw
posted by Tan Seng Giaw @ 4/20/2007 11:26:00 PM
2 Comments:
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