If one were to ask why Proton should no longer exists ... or why Proton is finding it so hard to make money after such a long time ...: Most will cite the fact that we were uncompetitive (design, research, economies of scale, talent, domestic market). If thats not enough to convince you, well, look at the GLOBAL CAR INDUSTRY, and then see what you can CONCLUDE FROM THE PICTURE:
Conclusion: Look at 99% of the auto makers, they are under ONE BIG UNIT. How in HELL or HEAVEN can Proton compete with these units. They will be able to share research costs, design costs, management processes, share backoffice expenses, sourcing economies of scale, buying power over suppliers and even distributors ... with the array of products, they can even "negotiate with leverage with governments and unions" to get tax breaks, incentives and cheap land for assembly and manufacturing. Naturally the bigger the grouping, the better the ability to attract and reward genuine talent.
Even when you try to protect Proton by imposing high tariffs/taxes on imports ... our domestic market is just not big enough - almost all profits recorded by Proton came from the pockets of Malaysians who have no choice but to pay for an over priced Proton cause other imported cars have been pushed even higher artificially. Where are we we in terms of earnings per capita, we do not make even the top 30 0r 40 countries. But where are we in terms of car prices globally??? We are in the top 3. Thats a huge chunk from our free cash flow. Enough la, citizens subsidised, then government also gives out loan again and again. I am all for patriotism but sometimes it no longer makes sense. At least we gave a try, lets move on.
Each and every factor I have mentioned, you can pinpoint where Proton will be in terms of competing with them. So, please seriously consider shutting it down, or selling to somebody cause we have no economies of scale, cost advantages, design superiority, ... to speak of. We will just continue to ask MOF for funds every 3-5 years.
Title: Why Proton Probably Cannot Compete
Posted by:Dhduf
Published :2016-06-15T01:19:00-07:00
Rating: 3.5
Reviewer: 5 Reviews
Why Proton Probably Cannot Compete
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