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Tuesday, 1 April 2008

Proton's reputation is going, going, gone...

Once upon a time, there was a local car assembly company called Proton. It came out with a very basic first model that was christianed Saga. Thus was born the Proton Saga. Even from Day One itself, the Proton Saga was the butt of many jokes. Some said that its very name suggested that you have to push the car: sahg-ah (in the Hokkien dialect, sahg means push). Anyway, Proton survived the jokes and went on to become Malaysia's Number One car maker. In fact, the Saga proved to be a very reliable workhorse.

Then came a young upstart that began manufacturing the Kancil. Pretty soon, as Perodua began eating steadily into Proton's share, the latter sank into an administrative, creative and financial quagmire. True, new models did come out but there was nothing earth-shaking in their new engine designs or even external body work. And then there were some questionable investments and subsequent divestment of these investments.

Consequently, it began losing its market share and being the dinosaur it was, one totally clueless of how to react, Proton became endangered. The Federal Government tried to open negotiations with foreign car manufacturers with a view to sell off some shareholdings and inject in some foreign expertise. But after months, if not years, of talking with the Volkswagon group, the protracted negotiation was broken off and the government confidently declared that Proton could now stand on its own feet.

Stand on its own feet? Only time will tell if Proton is capable of it. I won't be surprised if it still has to depend on the Federal Government's patronage to rescue it every time it gets into trouble. But the damage was done. Proton's pride as the first mover among local car manufacturers has been shaken. In the past years, Perodua has managed to zoom past the old dinosaur. Perodua now claims pole position as Malaysia's Number One car manufacturer.

And as far as I can see, Proton's troubles have not stopped. Just yesterday, it was announced that Proton Savvy owners should quickly take their cars to the nearest service centre and have them checked for a possible problem with the rear wheel bearing. A recall programme has been initiated to replace them. According to Proton, the danger is with water entering the bearing and damaging it. Not wanting to take any risk, the company has decided to replace the bearings at their cost.

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