Why We Should Kill Off Proton?

Suppose my car cost Rm47,000. I pay a downpayment of Rm7,000 and take a loan from a bank for the remainding Rm40,000.

Each month I pay the bank Rm619.

If I times this number with the total period of the loan, I would be able to find out the total amount which I must pay the bank.

_

Total amount (to bank)

= 619 x 7 (years) x 12 (months)

= Rm 51,996

_

Therefore, the interest payment we are paying to the bank is

= 51,996 – 40,000

= Rm 11,996

_

Ratio of interest payment against loan

= 11,996/40,000 x 100

= 29.99%!!

_

Oh my….At the end of seven years, I am paying a third more than the original price of my car (47,000). Adding oil to the flame is the fact that car prices depreciate over time (unlike some real estate assets) and commands a poor price in the second hand car market.

With the economic crisis in full swing and the investors fleeing the markets like a heard of frighten bulls, what has the people from the Government proposed?

Owners of old cars may get Rm 5,000 to discard vehicles!

Oh Great! Rm 5,000! But wait..there is a catch (stop whining, there is always a catch in the real world), because the cards that you discard is must be more than 15 years old.

Oh my! 15 years old (if that was some antique, it might actually be worth more)! Anyway, back to reality.

What is the point!!!!!!!!!!!!!!!!!!!!!!

Hello??? Everyone knows that we are in for a recession (the deepest one since 1997) and do you think many people would sell their old cars (for scrap metal in the second hand car market) and buy a new Proton? Give me a break….

I think represent not only myself but most Malaysians when I say that the Government should scrap their puny incentive of Rm5,000) and SCRAP PROTON!!

Why the hell do you think all of us Malaysians are paying such sky high prices for our cars??!!

One word….PROTON!

Why do you think there are so many Proton Wira’s on the road when their chassis design dates back to 1993??!!

One word….PROTON!

Why do you think our cars cannot start in the morning, our temperature meters are not working, our headlights burnt off, our brakes jamming, our boot an aquarium fit to rear fish, and our fellow Malaysians dying (Proton has the worst safety features relatively)

One word….PROTON!

So why then do we protect Proton?

Cause it is….A PROTON?!

Protectionism does not Protect

Since its founding by Tun Mahathir Mohamad in 1983, the name Proton goes hand in hand with the word ‘protectionism’. Well it did help to boost national pride 20 years ago, Proton is now seen as a symbol of substandard quality rather than a decent passenger vehicle.

Proton Wira (which is still at large in the market) is based on the design of the fifth generation Mitsubishi Lancer way back in 1991 (that is almost 17 years ago!). Worst still is the fact that the car has still many faulty defects that have not been properly addressed (throttle body, brake system, water coming into my car problem).

Protectionist government policy have long gave Proton a competitive edge over foreign cars. Duties on packages of parts for assembly into complete cars in Malaysia is said to average about 150% (not to mention other forms of exemptions from Excise Duty to tax rebates).

While all these aspects proved advantageous to the local car maker, Proton do not seem to be able to catch up with foreign car makers. Instead, protectionist policies has enabled Proton to continue to sell outdated designs, with scary outdated safety features at the expense of our standard of living!

Mismanagement continues to haunt the company and eat into their profit margins and market share. Proton’s purchase of a majority share in MV Augusta of Italy at 70 million Euro in 2004 and its subsequent sale for 1 Euro caused an uproar of many citizens in Malaysia. Recently, Proton Savvy was recalled back from the market due to a glitch in its rear wheel.

As Proton has recently been replaced by Perodua as the country’s largest passenger car maker, one can see that protectionism (though initially intended to be helpful) do not protect. The result of the government’s policy is that many Malaysians (me included) are driving vehicles of substandard quality.

If you do not believe me, take a trip to Beijing and catch a ride in their Volkswagen taxis. I have been there, I know.

(Jan-Oct 07)

Source:MAA, CIMB Research

The Proton Problem

Proton makes national headlines yet again as Proton is forced to issue a recall on all Proton Savvy models.

The company’s recent inspection brought into light the problem of water getting into the car’s rear-wheel bearing that might result in it malfunctioning.

Datuk Syed Zainal Abidin Syed Mohamed said in a press statement that, “The safety of our customers is our primary concern. As a precautionary measure, we are recalling all Savvy models for inspection and repair.”

The total of cars involve would be around 34,000. Proton Boleh!

Source: The Star

General Road Accident Statistics and Fatality Index in Malaysia

Further Reading

The Impact of the Sub-prime Mortgage Crisis and a Global Economic Slowdown on Malaysia

Would Malaysian exports be affected by US recession?

Impact of High Oil Prices on the Malaysian Economy

Economic Focus – Malaysia’s Major Exports

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Comments
2 Responses to “Why We Should Kill Off Proton?”
  1. Jia_Zhing says:

    Yes! My dearest friend, I’m totally agree with you.
    Proton cars is piece of crap, from 1991 till now, 2009, 18 years car making experience, and yet still classified as infant industry and need government protection. Oh, please, look at Perodua, far more successful than Proton.

    What government says when the import car’s taxes are high? ‘As a Malaysian, you all should buy more our nation made products, such as Proton.’ Oh, my dearest government, if you improve your Proton cars’ quality, I will sure that people will buy your cars. But, what have you done? Piece of crap! People has been disappointing when they buy your car. We lost confident on your car, what would you expect us to do? Honestly, my family members got around 8 cars at home, but none of us buy Proton. I just got my Perodua Viva last year, though the price are slightly higher than Proton, and the size are smaller. Why? Because I don’t wanna save that little bit of money, and let the car cause me a lot of problems and cost more on maintainence.

    My fourth aunt got her brand new BMW last week, my uncle in law got his Honda Accord, my eldest cousin owns a Nissan Sentra, but, really, they never think of getting a Proton car. Why? Because Proton car is not reliable. :)

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