Lotus, the historic British marque reversed from a £2m after-tax profit to a £14.6m loss in the year to March, according to the car manufacturer's latest accounts. This was driven by increased costs as its owner, the Malaysian car company Proton, invested in it through the recession.
The company took on 185 staff to prepare for last July's launch of the Evora, its first new model in 14 years. And in an effort to boost turnover, new variants of existing models were introduced and the dealer network expanded to cover more emerging markets including Saudi Arabia, Indonesia and Taiwan.
But the downturn has taken its toll as Lotus produced only 2,202 cars during the year compared with 2,649 in 2008. Revenue from sales and services fell 5.9 per cent to £73.7m but this was offset by growth in Lotus's high-tech engineering consultancy division which left revenues for the year up 1.9 per cent to £110.9m. However, the increased investment battered the company's profit margin as costs rose 16.6 per cent to £124.2m.
Parent company loans from Proton increased nearly six-fold and bank loans rose by a factor of 10 to bring total borrowing to £72m. Shareholders' funds slid from £17m to a deficit of £4.5m, but the accounts state that another Proton subsidiary will support Lotus as necessary for another 12 months. With deliveries of the Evora beginning last June, the road ahead should be smoother.
The Evora, the world's first mid- engine, four-seater supercar, was launched to great acclaim at last year's British International Motorshow. It will debut in the US early next year with an automatic variant, following in 2011.
North and South America are Lotus's largest markets bringing in £36.2m, while growing sales in Asia and Africa demonstrate its success at attracting emerging markets. In contrast, the UK is not only Lotus's second-smallest market but it is the only one which declined during the year shrinking by 5.6 per cent to provide £24.5m of the company's turnover.
Wednesday, October 21, 2009
Tuesday, October 13, 2009
Proton Car Sales In UK Exceed Full Year Target
Proton car sales in the United Kingdom (UK) has surpassed the company's full year target by 10 per cent despite a weaker demand for new cars in the country due to global economic slowdown.
Proton Cars (UK) Ltd managing director Brian Collier said the company's target had been to sell about 1,000 units this year.
The larger base of repeat customers and efforts to keep costs down helped the company to surpass its full year target, he said.
"We are actually 10 per cent ahead of our target, which is extremely nice given the difficult market condition here," he told Malaysian journalists here Wednesday.
He said car sales in the UK market was expected to drop to 1.7 million this year from 2.4 million two years ago.
Currently, Proton sells four models namely Gen.2, Persona, Satria and Savvy in the UK market. Its best selling model is the Savvy that makes up about 40 per cent of total sales.
Proton has sold about 150,000 cars in the UK since entering the market in 1989.
Collier said Proton Cars also sells cars that use liquefied petroleum gas (LPG) in the UK market as demand for LPG vehicles was on the increase following the hike in petrol prices and environmental concerns.
"The only cars that we have converted to LPG are Persona and Gen.2," he said.
Last year, Proton Cars sold 150 LPG cars and its targets is to sell 200 units this year.
Proton Cars (UK) Ltd managing director Brian Collier said the company's target had been to sell about 1,000 units this year.
The larger base of repeat customers and efforts to keep costs down helped the company to surpass its full year target, he said.
"We are actually 10 per cent ahead of our target, which is extremely nice given the difficult market condition here," he told Malaysian journalists here Wednesday.
He said car sales in the UK market was expected to drop to 1.7 million this year from 2.4 million two years ago.
Currently, Proton sells four models namely Gen.2, Persona, Satria and Savvy in the UK market. Its best selling model is the Savvy that makes up about 40 per cent of total sales.
Proton has sold about 150,000 cars in the UK since entering the market in 1989.
Collier said Proton Cars also sells cars that use liquefied petroleum gas (LPG) in the UK market as demand for LPG vehicles was on the increase following the hike in petrol prices and environmental concerns.
"The only cars that we have converted to LPG are Persona and Gen.2," he said.
Last year, Proton Cars sold 150 LPG cars and its targets is to sell 200 units this year.
Sunday, October 11, 2009
TRANSFER CASE STUDIES: DIAGNOSING GM's 4WD SYSTEM
Access to DTCs can simplify any system diagnosis. But as two separate cases on GM's 4WD system reveal, these codes are not always 100% accurate.
GM has used many different four-wheeldrive control systems in its vehicles over the years, ranging from pure mechanical to electronically controlled. Each has its own diagnostic procedures, and the best source for understanding how these systems work will always be your information system.
Some later model 4WD systems have scan tool capabilities along with diagnostic trouble codes (DTCs) to help locate and diagnose many of the problems associated with them.
We looked at twu GM K 1500 trucks that have the NVG 246 two-speed transfer case. One is a 1999 model, the other a 2000. Both use the same controls and happen to have stored the same DTC. The basic system consists of a transfer case motor and encoder, Front differential actuator, trans for case module, speed sensors, switches and park input and output to the PCM. It seems logical to use case studies to show how these systems can he repaired.
The transfer case module data can be accessed with a scan tool such as the Tech 2, which is GM's official scan tool. To get to the proper screens, you must choose the Powertrain selection, then navigate your way to the ATC selections. ATC is the GM acronym for acMoe transfer case. As with any module/computer-based diagnostic strategy, it's always a good idea to make checking DTCs one of the first steps in your diagnosis. These two trucks have 19 possible DTCs, including those for input, motor, encoder and even VIN codes.
Selecting "F1" on the menu got us where we needed to be. Both trucks had one DTC stored: B2725 (active transfer case mode switch malf'unction). A Tech 2 information screen will also let you know whether certain 4WD systems do not allow scan tool access.
I could hear the encoder motor at the transfer case working, which confirmed my scan data and helped me find a diagnostic direction. Since it seemed like the problem was in the front axle area, I decided to check the front axle motor actuator next. Using a voltmeter, I determined O voltage was present on terminal C, (circuit 241, brown wire). I chose this wire based on the wiring diagram, which showed fuse 24 in the IP fuse box feeding voltage to the front axle motor. Going this far without first checking the fuse could turn out to be pretty embarrassing if the problem was simply a blown fuse. However, I knew the fuse also powered the transfer case control module. Since I was getting scan data and encoder motor operation, the fuse had to be good.
The only culprit left was the wiring harness between the fuse and front axle motor. It's always best to start checking for wiring problems by inspecting the harness in areas where it's most likely to be damaged by moving engine components, rotating parts or road objects striking the underside of the vehicle. I located the problem within minutes. The wiring harness near the right front axle where it enters the differential housing was damaged. At least two wires were broken, including the brown wire, which can be seen in the photo lower left. A harness repair was in order.
I had found the problem, but still could not explain why the system had stored code B2527. Was there another, intermittent problem just waiting for me to turn my back? I decided to look closer at the description for B2527 and found something interesting, "...the transfer case shift control module will set this DTC if a button is held down or sticks for a period longer than 5 minutes."
It seemed very possible that a driver might hold down a 4WD button for five minutes if he got stuck and the 4WD system wasn't working. To test my theory, I held the button down for several minutes to create the 4WD warning light visible in the photo on page 33. The system also set a code B2527. Maybe, just maybe, the DTC was actually set by the driver due to the broken wire to the front axle. I may never know for sure.
It's easy to fall into the habit of replacing common problematic components without verifying that they actually are defective. As this second case study of GM's relatively simple truck 4WD control system proves, this approach can get you into trouble. It always pays to test and verify before replacing a component.
GM has used many different four-wheeldrive control systems in its vehicles over the years, ranging from pure mechanical to electronically controlled. Each has its own diagnostic procedures, and the best source for understanding how these systems work will always be your information system.
Some later model 4WD systems have scan tool capabilities along with diagnostic trouble codes (DTCs) to help locate and diagnose many of the problems associated with them.
We looked at twu GM K 1500 trucks that have the NVG 246 two-speed transfer case. One is a 1999 model, the other a 2000. Both use the same controls and happen to have stored the same DTC. The basic system consists of a transfer case motor and encoder, Front differential actuator, trans for case module, speed sensors, switches and park input and output to the PCM. It seems logical to use case studies to show how these systems can he repaired.
The transfer case module data can be accessed with a scan tool such as the Tech 2, which is GM's official scan tool. To get to the proper screens, you must choose the Powertrain selection, then navigate your way to the ATC selections. ATC is the GM acronym for acMoe transfer case. As with any module/computer-based diagnostic strategy, it's always a good idea to make checking DTCs one of the first steps in your diagnosis. These two trucks have 19 possible DTCs, including those for input, motor, encoder and even VIN codes.
Selecting "F1" on the menu got us where we needed to be. Both trucks had one DTC stored: B2725 (active transfer case mode switch malf'unction). A Tech 2 information screen will also let you know whether certain 4WD systems do not allow scan tool access.
I could hear the encoder motor at the transfer case working, which confirmed my scan data and helped me find a diagnostic direction. Since it seemed like the problem was in the front axle area, I decided to check the front axle motor actuator next. Using a voltmeter, I determined O voltage was present on terminal C, (circuit 241, brown wire). I chose this wire based on the wiring diagram, which showed fuse 24 in the IP fuse box feeding voltage to the front axle motor. Going this far without first checking the fuse could turn out to be pretty embarrassing if the problem was simply a blown fuse. However, I knew the fuse also powered the transfer case control module. Since I was getting scan data and encoder motor operation, the fuse had to be good.
The only culprit left was the wiring harness between the fuse and front axle motor. It's always best to start checking for wiring problems by inspecting the harness in areas where it's most likely to be damaged by moving engine components, rotating parts or road objects striking the underside of the vehicle. I located the problem within minutes. The wiring harness near the right front axle where it enters the differential housing was damaged. At least two wires were broken, including the brown wire, which can be seen in the photo lower left. A harness repair was in order.
I had found the problem, but still could not explain why the system had stored code B2527. Was there another, intermittent problem just waiting for me to turn my back? I decided to look closer at the description for B2527 and found something interesting, "...the transfer case shift control module will set this DTC if a button is held down or sticks for a period longer than 5 minutes."
It seemed very possible that a driver might hold down a 4WD button for five minutes if he got stuck and the 4WD system wasn't working. To test my theory, I held the button down for several minutes to create the 4WD warning light visible in the photo on page 33. The system also set a code B2527. Maybe, just maybe, the DTC was actually set by the driver due to the broken wire to the front axle. I may never know for sure.
It's easy to fall into the habit of replacing common problematic components without verifying that they actually are defective. As this second case study of GM's relatively simple truck 4WD control system proves, this approach can get you into trouble. It always pays to test and verify before replacing a component.
Tuesday, October 6, 2009
Proton Persona Prices
The much talked about proton family, Proton Persona finally launched today at Proton Head Office, Shah Alam. With a booking more than 2,500 unit, this model for me will give a big success to Proton. With a nice design, coupled with many extras such as Air Bag, ABS, spacious room and good price, more booking are expected in future. No wonders, PROTON targeting at least 4,000 unit booking a month.
The price (from motortrader)
CONFIRMED PRICES
(Price w/o insurance + insurance premium = OTR price)
Persona 1.6 Auto H-Line: RM54,186.50 + RM1,613.50 = RM55,800.00
Persona 1.6 Manual M-Line: RM48,342.50 + RM1,457.50 = RM49,800.00
Persona 1.6 Auto M-Line: RM51,264.50 + RM1,535.50 = RM52,800.00
Persona 1.6 Manual Base-Line: RM43,671.50 + RM1,327.50 = RM44,999.00*
Persona 1.6 Auto Base Line: RM46,593.50 + RM1,405.50 = RM47,999.00*
Persona 1.6 Manual Base-Line: RM44,095.50 + RM1,353.50 = RM45,449.00
Persona 1.6 Auto Base-Line: RM47,017.50 + RM1,431.50 = RM48,449.00
Looking at the price, I am sure Persona will give its competitor (vios, city) a run for their money. And this model will also be the WAJA, Gen 2 killer … :)
I heard also tonite NAZA will introduce their new model. Wait for it
Monday, October 5, 2009
LPG model set to drive Proton UK sales
It’s tapping rising demand for dual-fuel cars in Britain
NORFOLK (England): Proton Cars UK Ltd (Proton UK) is banking on its liquefied petroleum gas (LPG)-powered cars to help drive sales in Britain, according to its managing director Brian Collier.
He spoke of an emerging niche market for the Proton Gen-2 1.6 litre ecoLogic which runs on either LPG or petrol in the wake of rising fuel prices.
Collier said there had been an increasing demand for the dual-fuel model which costs the same as the petrol version but requires half the price to run and is kinder to the environment.
Proton Cars UK MD Brian Collier showing the LPG conversion fitting neatly into the original design after briefing for Malaysian journalists at the Park Farm Country Hotel & Leisure at Hethersett, Norwich.
“Next year is going to be all about LPG cars and repeat customers,” he told Malaysian journalists at a briefing at the Park Farm Country Hotel & Leisure in Hethersett, Norwich, on Wednesday.
The briefing was organised by Proton Holdings Bhd in conjunction with the royal visit to the Lotus plant headquarters by the Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin and Raja Permaisuri Agong Tuanku Nur Zahirah today.
A subsidiary of Proton Holdings which acquired Lotus in 1996, Proton UK has sold about 150,000 vehicles in Britain since 1989.
Last year, about 1,500 units were sold through the company’s 80 dealers across Britain but Proton UK has revised its target to 1,000 this year due to the global economic slowdown.
Collier said they sold 150 LPG vehicles last year and expected to hit 200 this year, adding that the Humberside police force has a fleet of 100 such units.
He said these vehicles were sought after by corporate clients including companies with small fleets and taxi operators that now accounted for about half their total sales.
“Britons are very cost-conscious, especially during the economic downturn,” he said, citing petrol price of around £1.10 a litre against 50 to 55 pence for a litre of LPG.
Proton UK, he added, was the only manufacturer in Britain which did not charge extra for the LPG conversion, which usually costs about £2,000.
Collier also singled out the Savvy as Britain’s best-selling Proton car among its models including the Satria, Gen-2 ecoLogic and Gen-2 Persona.
He said Britons loved small economic cars such as the Savvy for fuel economy and its low emission which the annual car tax was based upon.
The Savvy naturally fits into this A and B segments which dominate the British market, he said, adding about 400 Savvy were sold this year alone.
Savvy is priced just under £8,000 but with a £2,000 discount under Britain’s car scrappage scheme, it costs just below £6,000, according to Collier. In fact, some brand new cars are selling for £5,000 or less, an indication of the tough market, with car manufacturers across Europe badly hit, he said.
British vehicle sales had plunged from 2.4 million units two years ago to about 1.7 million this year while Spain was down by nearly 40%.
Collier sees a difficult year ahead, especially with the proposed value-added tax increase and Britain’s plan to double the road tax for new cars next year.
“We need to look at different ways to sell cars, particularly in Britain where almost 50 manufacturers in totally open market conditions are struggling for a market share,” he said.
Proton Car Sales In UK Exceed Full Year Target
Proton car sales in the United Kingdom (UK) has surpassed the company's full year target by 10 per cent despite a weaker demand for new cars in the country due to global economic slowdown.
Proton Cars (UK) Ltd managing director Brian Collier said the company's target had been to sell about 1,000 units this year.
The larger base of repeat customers and efforts to keep costs down helped the company to surpass its full year target, he said.
"We are actually 10 per cent ahead of our target, which is extremely nice given the difficult market condition here," he told Malaysian journalists here Wednesday.
He said car sales in the UK market was expected to drop to 1.7 million this year from 2.4 million two years ago.
Currently, Proton sells four models namely Gen.2, Persona, Satria and Savvy in the UK market. Its best selling model is the Savvy that makes up about 40 per cent of total sales.
Proton has sold about 150,000 cars in the UK since entering the market in 1989.
Collier said Proton Cars also sells cars that use liquefied petroleum gas (LPG) in the UK market as demand for LPG vehicles was on the increase following the hike in petrol prices and environmental concerns.
"The only cars that we have converted to LPG are Persona and Gen.2," he said.
Last year, Proton Cars sold 150 LPG cars and its targets is to sell 200 units this year.
Sunday, September 27, 2009
One of Britain's fabled motor racing names Lotus to return to Formula One for 2010 season
One of Britain's fabled motor racing names Lotus to return to Formula One for 2010 season
Lotus, one of the most evocative names in British motor racing, will return to the Formula One grid next season after 16 years away.
The fabled team, which took the likes of Jim Clark and Graham Hill to world title glory, have been named as new entrants for 2010.
The new Lotus, however, will be different from the homespun outfit introduced to F1 in 1958 by the great Colin Chapman.
Graham Hill
Golden memories: Graham Hill driving the legendary Lotus at Silverstone in 1958
The funding comes from the Malaysian government, which controls the Lotus company through its government owned Proton car marque.
However, sources in Malaysia indicated that Lotus would be initially based in Norfolk, with a view to establishing a permanent base in Malaysia.
Starting up Team Lotus again was originally the idea of F3 team Lightspeed, only for the FIA to overlook their claims in June by preferring applications from three rivals, including the British team Manor Grand Prix.
That, though, was before the nacking of the Malaysians, who will support the project with money from the state-owned Petronas oil and gas company.
Mike Gascoyne, a highly respected figure in the sport after spells at numerous teams including Force India, will be technical director.
Lotus will plug the gap left by BMW, if a buyer for them cannot be found, and other manufacturer teams if they decide the cost of remaining in F1 is too great.
It remains to be seen if the FIA will unveil more new teams today.
Read more: http://www.dailymail.co.uk/sport/formulaone/article-1213507/One-Britains-fabled-motor-racing-names-Lotus-return-Formula-One-2010-season.html#ixzz0SIAaPRI2
Lotus, one of the most evocative names in British motor racing, will return to the Formula One grid next season after 16 years away.
The fabled team, which took the likes of Jim Clark and Graham Hill to world title glory, have been named as new entrants for 2010.
The new Lotus, however, will be different from the homespun outfit introduced to F1 in 1958 by the great Colin Chapman.
Graham Hill
Golden memories: Graham Hill driving the legendary Lotus at Silverstone in 1958
The funding comes from the Malaysian government, which controls the Lotus company through its government owned Proton car marque.
However, sources in Malaysia indicated that Lotus would be initially based in Norfolk, with a view to establishing a permanent base in Malaysia.
Starting up Team Lotus again was originally the idea of F3 team Lightspeed, only for the FIA to overlook their claims in June by preferring applications from three rivals, including the British team Manor Grand Prix.
That, though, was before the nacking of the Malaysians, who will support the project with money from the state-owned Petronas oil and gas company.
Mike Gascoyne, a highly respected figure in the sport after spells at numerous teams including Force India, will be technical director.
Lotus will plug the gap left by BMW, if a buyer for them cannot be found, and other manufacturer teams if they decide the cost of remaining in F1 is too great.
It remains to be seen if the FIA will unveil more new teams today.
Read more: http://www.dailymail.co.uk/sport/formulaone/article-1213507/One-Britains-fabled-motor-racing-names-Lotus-return-Formula-One-2010-season.html#ixzz0SIAaPRI2
Tuesday, September 8, 2009
PROTON MAKE A NEW PROTON SUV?
PROTON MAKE A NEW PROTON SUV?
By kdi • Aug 16th, 2009 • Category: ! FORUM, Lets talk here!" rel="category tag">! Hot Info > Lets talk here!, PROTONNew Contribution By Norman
Message :Patutkah Proton buat SUV 7 seaters? Seperti Daihatsu Terios 7 atau Honda Crossroad 7 seaters?
proton suv
KDI : Proton have done a clay model of Concept SUV before the launch of Proton Exora which is named as PROTON MSX. Proton MSX is base on Lotus APX. Yes in the future Proton will develop a new Proton SUV base of Proton’s interest to build the clay model of 7 seater Proton MSX.
Proton SUV MSX is to produce a high technology ‘Jekyll & Hyde’ dual image, high performance crossover.It is actually a technology showcase of aluminiun adaptable platform,ride & handling,engine power and crossover functions of suv and sports car.
proton 4wd
The target user group of the PROTON MSX is for successful professionals with young-at-heart lifestyle.The typical usage of the mpv is for leisure and work.And to attract all the businessmen, corporate leaders or celebrities,they had emphasize on 6 different aspect of the car which is the style,the engine and performance,the technology behind it,the ride and handling,the quality and also the ride comfort.
With only a Naturally Aspirated 3.0 V6 engine,They had manage to churned out a hefty 224KW of power and 360Nm of torque.With a 0-100 time of 5.9 seconds and a top speed of 250kmh, the proton already beaten up some of the top notch SUV such as the Porsche Cayenne S,BMW X6 35i and the Nissan Murano.
suv
The Technical Specification Of the PROTON SUV
ENGINE : 3.0L V6
MAX POWER : 224kW
MAX TORQUE : 360Nm
TRANSMISSION : 6 M/T
LENGTH :4,697mm
WIDTH : 1,852mm
HEIGHT : 1,750mm
WHEELBASE : 2700mm
KERB WEIGHT : 1,570kg
0-100km/h : 5.9sec
TOP SPEED : 250km/h
Monday, September 7, 2009
Proton At Green Car Congress
Proton Motor Previews “Triple-Hybrid” Electric Drive Passenger Bus
13 May 2009
Proton Motor Fuel Cell GmbH, a subsidiary of Proton Power Systems plc, a designer, developer and producer of fuel cells and fuel cell electric hybrid systems, has previewed the first passenger bus using the company’s “triple-hybrid” fuel cell system. The presentation took place in Puchheim, near Munich on 8 May, with an official unveiling and handover to take place this summer in Prague.
The new vehicle is the product of a cooperation agreement between Skoda Electric, UJV Nuclear Research Institute Rez plc and Proton Motor. As a manufacturer of trolley buses and electric-powered rail vehicles, Skoda Electric was responsible for the vehicle, including its electric drive system and system integration. The project was coordinated by UJV, a leading research institution in the Czech Republic. Proton Motor supplied the propulsion system.
The triple-hybrid system combines a 50 kW PM Basic A 50 fuel cell system, battery pack and ultra-capacitors. Factoring in regenerative braking as well, the system enables energy savings of more than 50% compared to a conventional diesel bus, according to Proton, while being emissions-free in operation.
The basic vehicle is a 12-meter standard bus with a total permissible weight of 18 tonnes. The propulsion system’s nominal output is 120 kW (163 hp). Maximum speed is 65 km/h (40 mph), while its maximum range during urban transport is more than 250 km (155 miles) per tank. The bus carries 20 kg of compressed gaseous hydrogen at 350 bar, and the filling process takes less than 10 minutes. The vehicle will go into operation in and around Prague from mid-2009 onwards.
The PM Basic A 50 fuel cell system has also been in use since last year in the EU-funded ZEMship (Zero Emission Ships) project, applied in the fuel cell-powered passenger ferry, the FCS Alsterwasser. (Earlier post.)
In 2007, Proton Motor introduced a triple-hybrid forklift system. Designed as a “plug-and-drive” technology, the PM Package MH 30 system combines a 10 kW fuel cell, battery and supercapacitors. (Earlier post.)
In 2008, Proton Motor and AVL List GmbH signed a framework contract to collaborate on the development of fuel cell hybrid systems for powertrains as well as related measurement and diagnostic technology. AVL serves as the powertrain engineering and measurement technology provider while Proton Motor is the PEM (proton exchange membrane) fuel cell system provider. (Earlier post.)
Proton Gen-2
Subaru Justy & Proton Gen-2, Five years, 60,000-miles
Okay, so 60,000-miles isn't as good as the unlimited distance offered on the best cars in this quintet, but you've three more years than most cars in which to reach them. Only two cars in the UK are offered with such warranties: the Subaru Justy and a few special edition Proton Gen-2 models.
Why the Justy isn't unlimited is a mystery as it's basically a re-badged Daihatsu, but it does better the warranties of its Impreza, Forester and Legacy relatives. Proton's Gen-2 needs all the help it can get to drive sales; as generous as the special edition's warranty offer is we'd rather have a Kia or Hyundai instead.
Subaru Justy & Proton Gen-2, Five years, 60,000-miles pictures
Proton Car Maker
Proton (carmaker)
 | |
| Type | Public (Bursa Malaysia: PROTON) |
|---|---|
| Founded | Established 1983 |
| Headquarters | Kuala Lumpur, Malaysia |
| Key people | Dato' Haji Syed Zainal Abidin Syed Mohd Tahir (MD) |
| Industry | Automotive |
| Products | Car, Automotive Parts |
| Revenue | ▲ RM6.49billion MYR 2008 |
| Employees | 10 300 |
| Subsidiaries | Lotus |
| Website | proton.com |
Proton is the Malaysian national automobile manufacturer (Malay acronym for PeRusahaan OTOmobil Nasional, 'National Automobile Enterprise'), which was established in 1983 under the direction of the former Prime Minister, Dr. Mahathir Mohamad. Proton Holdings Berhad, the holding company, is listed on the Bursa Malaysia.
Contents[hide] |
History
Based on technology and parts from Mitsubishi Motors, production of the first model, the Proton Saga began in September 1985 at its first manufacturing plant in Shah Alam, Selangor. Initially the components of the car were entirely manufactured by Mitsubishi but slowly local parts were being used as technologies were transferred and skills were gained. The 100,000th Proton Saga was produced in January 1989.[1]
Until the end of the 1990s, the car's logo featured the crest from Malaysia's coat of arms, featuring a crescent and a fourteen-pointed star. The new Proton logo features a stylized tiger head. In 1993, a model called Proton Wira was introduced based on the Mitsubishi Lancer/Colt. More than 220,000 units were sold between 1996 and 1998.[2] Proton Perdana, based on the Mitsubishi Galant/Eterna, was first produced in 1995, intended for higher end market. The Proton Waja (Proton Impian in UK), which launched early 2001, is the first car model designed internally by Proton.
By 2002 Proton held a market share of over 60% in Malaysia, which was reduced to barely 30% by 2005 and is expected to reduce further in 2008 when AFTA mandates reduce import tariffs to a maximum of 5%. (See "Trivia" section for update on tariff implementation)
With the acquisition of Lotus technologies in 1996 from ACBN Holdings (a company owned by the owner of Bugatti), Proton has gained an additional source of engineering and automotive expertise. This led to the production of Proton Gen-2 which was code name Wira Replacement Model (WRM) before the launch. The Gen-2 is the first of cars to be manufactured and assembled at the new manufacturing plant in Tanjung Malim, Perak which is part of Proton City development project. The plant was opened in 2004. On 8 June 2005 Proton introduced the second model to be manufactured in Tanjung Malim, the 1,200 cc 5-door supermini, the Proton Savvy. Both the Gen-2 and Savvy, were models that MG Rover was looking to rebadge when the British firm entered into collaboration talks with Proton. However these joint-venture talks were unsuccessful and MG Rover subsequently collapsed.
In 2007, Proton launch its new sedan as replacement version for Wira Sedan but with new name, Persona. The new Proton Saga replacement model (codename Proton BLM) was launched on 18 January 2008. The new Saga is based on the Savvy platform, but using Campro 1.3L instead of Renault engine. It was announced on August 8, 2008 that Proton is developing a new, fuel-efficient hybrid car to beat rising costs and address environmental concerns. Prime Minister Abdullah Ahmad Badawi told reporters that he had already test-driven the car and urged the company to continue researching energy-saving techonologies. [3]
As of 3 August 2008, Proton has produced 3 million cars since 1985, where the 3 millionth car is a second-generation Saga.[4]
Exports
Proton exports cars to the United Kingdom, South Africa, and Australia and the company is aggressively marketing its cars in several other countries including the Middle East. Besides that, Proton cars has also been exporting a small volume of cars to Singapore, Brunei, Indonesia, Nepal, Sri Lanka, Pakistan, Bangladesh, Taiwan , Cyprus and Mauritius. 14,706 Proton cars were exported in 2006[5]
Recently Proton returned to Guangdong, China, where it did business in the past but withdrew after having poor sales record. In July 2007, Proton signed an agreement with Youngman Automobile Group Ltd. Co., paving the way for the national carmaker to offer its products and services in China. Under the agreements,Youngman will import 30,000 Gen.2 CBU (completely built-up) units and resell them under its own EuropeStar brand and eventually develop a new range of Made-in-China cars with the engineering services provided through Proton's Lotus.[6] Proton is expected to ship 1500 cars a month for 20 months starting December 2007 to fulfill the order[7].
Proton began its exports from Malaysia to other right hand drive markets like New Zealand in the late 1980s, but its success was mostly limited to the United Kingdom where it entered the market, along with Ireland, in 1989. They advertised there with the slogan Japanese Technology, Malaysian Style. Proton cars proved popular among budget-oriented motorists, and like Japanese and South Korean models before them, led to the demise of manufacturers such as the Soviet Lada and ex-Yugoslavian (now Serbia) Zastava. By the 1990s, Proton had withdrawn from the New Zealand market after offering only the Saga four-door and Persona five-door models. The company also exited the Irish market in the early 1990s, following limited success in that country. The Persona and Natura models were sold in Chile briefly during the late nineties by a local Nissan importer, but few were sold and the venture ended after two years.[citation needed] Proton sales seem to be slowly declining in the United Kingdom with 2008 sales at 1518 (0.07% share of the market), compared to 2752 in 2002. These figures are insignificant compared to 2008 UK sales of 28,036 for Korea's Hyundai and 29,397 for Spain's SEAT. Proton enjoyed brief success as a few units of the Saga and Wira were exported to Trinidad & Tobago (Caribbean) during the late 90s where they were used mainly as rentals.
Proton also exports cars to Singapore and Australia, and now produces models in left-hand drive, for export to continental Europe. An entry into the US market was considered by Malcolm Bricklin following Hyundai's successful launch in the mid 1980s. However, exports to the US never materialized, as the cars required hundreds of changes to meet American safety standards in order to secure coverage from auto insurers and satisfy legislative requirements. Proton export models still do not comply to all environmental standards such as emission limits.
The model that Malaysia has followed with the formation of Proton may be used as a case study for rent seeking as tariffs on imported cars rose almost immediately following the formation of Proton. Also AFTA agreements on relaxing entries into the ASEAN marketspace had exemptions specifically for Proton. The Malaysian government gained a three-year exemption for Proton from 2002 to 2005 where entry tariffs had to be lowered to 5%. This was replaced by other duties resulting in no net decrease in automotive prices for importers.
In the United Kingdom, Proton cars suffer somewhat from a poor public image; they are considered poor quality products with very poor residual values compared to rivals from Kia, Chevrolet and Hyundai. In 1998 Proton attempted to change this by introducing the Proton Satria GTi - however, the car was somewhat out of reach to younger drivers due to high insurance premiums (the car was originally a group 16 and was reclassified in 2001 to group 14 but this still resulted in high premiums). The Satria GTi also sported a "Lotus Ride & Handling" badge which, coupled with an average security system, made it easy picking for a potential thief. However, the vehicle was a success as far as handling was concerned which meant that, coupled with its 1.8 16-valve Double Overhead Cam Engine (which produced 133bhp) a number were purchased by Octogon Race Circuits and used as track cars at Silverstone and Brands Hatch racing circuits.
Proton cars were imported into Trinidad and Tobago between 1993 and 2002. They were sold through a local dealer, H.E Robinson Ltd. Only the Saga and Wira ever reached this market with the Wira enjoying modest sales success. The bankruptcy of the dealership forced the exit of Proton from Trinidad and Tobago in 2002.
For a short time, the Proton Wira was marketed in the Philippines via LHD in 1994 with the establishment of Proton Pilipinas through the ASEAN Industrial Joint Venture (AIJV) Scheme[8][9] before they pulled out due to the 1997 Asian Financial Crisis.
Drop in sales
In 2006, Proton's sales dropped 30.4% from 166,118 in 2005 to 115,538 for the Malaysian market,[10][11] with a later report indicating a 55% fall of sales to 962.3 million ringgit, its lowest in at least seven years.[12] This allowed Perodua to overtake Proton as the country's largest passenger carmaker for the first time, with a 41.6% market share, while Proton's market share fell from 40% in 2005 to 32% in 2006. In the period ending December 31, 2006, Proton has also suffered three consecutive quarterly losses. Compared to a profit of 86.5 million ringgit in 2005, the car company lost 281.5 million ringgit in 2006. Proton blamed discounts from rivals. Total losses in 2007s financial year climbed to $169 million.[12]
The Employees Provident Fund (EPF) acquired an additional 830,000 shares in a transaction that spanned between January 5 and January 12, 2007.[13]
Abortive strategic partnership with Volkswagen AG
In October 2004, Proton announced that an understanding had been reached with Volkswagen AG of Germany to establish a strategic partnership. Under the tie-up, the two carmakers were expected to exploit each other's strengths. Proton would gain access to Volkswagen's superior technical capabilities and technology. In return, Volkswagen would utilise Proton's spare capacity at the latter's Tanjung Malim plant to assemble cars for export to the South-East Asian market, where the German auto giant had a weak presence.
On 13 January 2006, Volkswagen finally announced that negotiations about the partnership had failed because VW's desires clashed with the terms and conditions offered by Proton. VW were more interested in eventually controlling Proton Holdings rather than just being a strategic partner.[14] Despite this, Malaysian news announced that Volkswagen AG has signed an agreement to buy a 51% share in Proton on 26 January 2007, which turned out to be unfounded. Throughout most of 2007, rumours about continuing merger talks with Volkswagen, and occasionally General Motors surfaced in the local press and at briefings given by top government officials.
Finally however, on 20 November 2007, Proton announced that talks regarding any partnership with Volkswagen had ended with immediate effect, citing improving sales over the year, a favorable export outlook and confidence in management turning around the company without external collaboration. This unexpected announcement resulted in a 19% overnight drop in Proton's share price to their lowest value in seven years, due to the market's perceived uncertainty about the future financial viability of the company in an increasingly competitive local and world market.[15]
Partnership with Detroit Electric
On 2 September 2008 Detroit Electric announced plans to progressively roll out affordable electric vehicles worldwide by the end of 2009. Proton cars are to be used and tested in order to validate Detroit Electric's technology and explore the potential to collaborate to create a range of pure electric cars. Detroit Electric has to date integrated its electric drive systems into Proton's Lotus Elise and two Proton passenger cars.[16] Detroit Electric hoped to collaborate with Proton to sell electric cars for the Southeast Asian market or to use Proton's existing manufacturing platform to produce electric cars under the Detroit Electric brand. The company planned to roll out 30,000 electric cars by 2010, as he demonstrated their performance at a Proton test circuit in Shah Alam, west of the capital Kuala Lumpur.[17]
Acquisitions
Lotus
In 1996, Proton acquired a 63.75% share in Lotus Group International Limited for £40,640,000. A later PriceWaterhouse Coopers audit would find that the CEO, Yahaya Ahmad, had inked the agreement on 16 October 1996. The agreement was presented to the board for approval on 27 November 1996. As part of the purchase agreement (signed prior to board agreement), there were restrictions placed on Proton's ownership of Lotus. One of the restrictions was a prohibition on diluting ACBN's remaining shareholding for a period of five years. This restricted Proton in its operation of the Lotus business and required Proton to guarantee a £40 million loan in 2000.
MV Agusta
In December 2005, Proton purchased a majority share in MV Agusta of Italy at 70 million Euro. MV Agusta was the manufacturer of MV Agusta, Husqvarna, and Cagiva motorcycles. A year later, Proton sold off its 57.7% share in MV Agusta to Italy's GEVI Spa for a token of 1 Euro. Due to heavy debt by MV Agusta, the selling enabled Proton to write off the losses off its book. But the buyer would assume the 107 million Euro ($174 million) in debt. In August 2007, GEVI SpA the company that bought over MV Agusta for 1 Euro sold the brand Husqvarna and its factory to BMW for a reported 93 millions euros leading to speculations by the Malaysian public of bad management of the company's board of directors resulting in further loss of reputation for the company.
Charges of protectionism
When the first Proton appeared on Malaysian roads, local wits promptly dubbed it (Proton Saga) the 'Potong Harga', meaning the 'cut-price' Proton. And for good reason. The Proton was at least 20% cheaper than non-national makes in the same 1.3 to 1.5 litre class. With both the price and a dash of national pride working for it, the Proton got a rapid hold on the market. By 1988 the Proton had overtaken all other makes and grabbed 73% of the passenger car market. This is the fact to which most Malaysians are not satisfied of, adding a general conclusion that Malaysian cars are not worth buying in terms of quality.
In 1983, when the 'national car' had been planned, Malaysia was selling just over 90,000 cars a year and the market was growing annually by 20%. The Proton plant was designed to turn out 80,000 units a year and could gear up to 120,000 units. But in Proton's first full year of production (1986), car sales took a severe dip to 47,000 and next year, due to the worsening economic situation, just 35,000. Only in 1988 did the market begin a recovery to 54,000 units, by now most of them Protons. Since then, the market has grown steadily to a 2005 peak of 417,000 cars[18]
Government policy has kept the Proton cheaper than other makes by the simple strategy of taxing the competition, while giving Proton exemptions from these same taxes. Duties on packages of parts for assembly into complete cars in Malaysia is said to average about 150%. Proton is exempted from most of these[19]
On 1 January 2008, the postponed-several-times full implementation of an ASEAN Free Trade Agreement [20] which Malaysia originally signed on to in January 1992 was to finally have come into effect. The agreement would effectively bar practices that discriminate against goods (including vehicles) that are considered “Made in ASEAN” by the use of Tariff and/or Non-Tariff Barriers. This would practically eliminate most of the price advantage, achieved by way of the 50% rebate Proton (and other “Malaysian-made” cars) enjoy on the hefty (75 to 125%) engine-capacity-related Excise Duty applied to new vehicles sold in Malaysia.
This rebate is largely responsible for the non-Malaysia ASEAN-made cars costing between 30 and 60 % more than an equivalent locally-made vehicle. With a “level playing field”, within the confines of CEPT[20] (which at the moment allows a maximum 5% import duty) using existing FOB prices, an ASEAN (Thai-made) Toyota would sell for within 10% of a comparable Proton, and would probably result in the devastation of Proton the company. It would appear that this is an unacceptable consequence to the Malaysian government, so for the time being, local car manufacturers will be allowed to continue receiving the excise duty rebate, with the Government picking up the tab for probable penalties it will have to pay to ASEAN members for the gross disregard of the Trade Agreement requirements.
As 2008 progresses, it is starting to be apparent that more and more global manufacturers are betting that the level playing field stipulated by CEPT will continue to be ignored by the Malaysian government for as long as possible. This has temporarily derailed these manufacturers' previous plans to use Thailand (principally) as their regional manufacturing hub, forcing them to reintroduce Malaysian-assembly of some models from CKD. This allows them to benefit from better tariff structures applied to such vehicles, in an effort to remain competitive (in the non-National car segment), and to narrow the price difference between their models and equivalent (Excise Duty rebated) locally-made cars.
It should be noted that the main “solution” mooted by the Malaysian Government over several years to maintain the pricing advantage of locally-made cars, by providing grants and subsidies (to counteract a removal of the Excise Duty rebate) would also be deemed to be non-compliant with the Trade Agreement, contravening Non-tariff barriers to trade requirements.
The lack of direct competition at Proton models' price points (in Malaysia) has allowed Proton, for many years, to continue selling very outdated designs, generally with scant regards to providing basic safety equipment such as airbags and anti-lock braking in domestic models. Additionally, J.D. Power survey results have consistently shown that Protons have poorer rankings in initial quality than the available competition[21]
See also
References
- ^ Todd, Halinah (May 1989). "The Proton Saga saga". New Internationalist. http://www.newint.org/issue195/proton.htm. Retrieved 2007-02-28.
- ^ Sorabjee Hormazd, Paul Fisher & Chips Yap (23-30/08/1999). "Asia's Century on Wheels". Time Asia. http://www.newint.org/issue195/proton.htm. Retrieved 2007-02-28.
- ^ AFP (2008-08-03). "Malaysia's Proton develops new hybrid car: reports". Yahoo! News. http://news.yahoo.com/s/afp/20080803/sc_afp/malaysiaautocompanyenvironmentproton_080803063234. Retrieved 2008-08-03.
- ^ Paul Tan (2008-08-04). "Proton produced 3,000,000 cars since 1985". paultan.org. http://paultan.org/archives/2008/08/03/proton-produced-3000000-cars-since-1985/. Retrieved 2008-08-03.
- ^ "RTM article". http://besonline.rtm.net.my/modules.php?op=modload&name=News&file=article&sid=67995&mode=thread&order=0&thold=0.
- ^ "Proton Secures Deal With China's Automaker". http://www.bernama.com/bernama/v3/news_lite.php?id=273089.
- ^ More Proton models for China
- ^ Rafaelita A.M. Aldaba. "Increasing Globalization and AFTA in 2003: What are the Prospects for the Philippine Automotive Industry?" (PDF). p. 17. http://www3.pids.gov.ph/ris/dps/pidsdps0042.pdf. Retrieved 2009-05-10.
- ^ Rafaelita A.M. Aldaba. "Increasing Globalization and AFTA in 2003: What are the Prospects for the Philippine Automotive Industry?" (PDF). p. 15. http://www3.pids.gov.ph/ris/dps/pidsdps0042.pdf. Retrieved 2009-05-10.
- ^ "Malaysian auto sales down 11% in 2006". http://biz.thestar.com.my/news/story.asp?file=/2007/1/25/business/20070125134350&sec=business.
- ^ Whitley, Angus (2007-01-25). "25/01: Malaysia's Proton loses top-selling spot for the first time". Bloomberg.com. http://malaysia-today.net/blog2006/newsncom.php?itemid=2090. Retrieved 2007-02-28.
- ^ a b Whitley, Angus (2007-02-27). "Proton Posts Loss as Sales Slump to Lowest in 7 Years (Update2)". Bloomberg.com. http://www.bloomberg.com/apps/news?pid=20601080&sid=axpaLGflllBA&refer=asia. Retrieved 2007-02-28.
- ^ Yong Soo Heong (2006-01-13). "VW's demands wreck deal with Proton". Malaysia Today. http://www.malaysia-today.net/Blog-e/2006/01/vws-demands-wreck-deal-with-proton.htm. Retrieved 2007-02-28.
- ^ Proton did however state that they may resume talks about collaborating with other manufacturers at later unspecified dates.Strong sales, so Proton drops partner option
- ^ "Detroit Electric's Electric Car Hits the Road Again After 100 Year Absence". PRNewswire. 2008-09-02. http://biz.yahoo.com/prnews/080902/3730493en_public.html?.v=1. Retrieved 2008-09-02.
- ^ "Detroit Electric eyes comeback with Malaysia's Proton as partner". Yahoo! News. 2008-09-03. http://sg.news.yahoo.com/afp/20080902/tap-malaysia-netherlands-auto-environmen-0193655.html. Retrieved 2008-09-03.
- ^ "Malaysia Automotive Association Summary of Sales & Production Data". http://www.maa.org.my/info_summary.htm.
- ^ "The Proton Saga saga". http://www.newint.org/issue195/proton.htm.
- ^ a b "Agreement On The Common Effective Preferential Tariff (CEPT) Scheme For The ASEAN Free Trade Area". http://www.aseansec.org/1164.htm.
- ^ "Initial Vehicle Quality Improves for a Third Consecutive Year in Malaysia" (PDF). http://www.jdpower.co.jp/press/pdf2006/2006MalaysiaIQS_E.pdf.
External links
 | Wikinews has related news: Malaysian car maker unveils 'Islamic car' |
- Company homepage
- Proton Malaysia homepage
- Proton Australia homepage
- Proton UK homepage
- Zagross Khodro - Proton Iran
- Lotus Cars UK homepage
- Proton News
- Proton Saga BLM Owners' Club @ PROSBOC
| [hide] Proton road car timeline, 1985–present | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Type | 1980s | 1990s | 2000s | ||||||||||||||||||||||
| 5 | 6 | 7 | 8 | 9 | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | |
| Supermini | Tiara | Savvy | |||||||||||||||||||||||
| Subcompact | Satria | Satria Neo | |||||||||||||||||||||||
| Compact Sedan | Saga / MPi / Knight / Saga Iswara | Saga | |||||||||||||||||||||||
| Wira / Persona / 400 series | |||||||||||||||||||||||||
| Waja / Impian | |||||||||||||||||||||||||
| Gen-2 | |||||||||||||||||||||||||
| Persona / Gen-2 Persona | |||||||||||||||||||||||||
| Mid-size | Perdana | ||||||||||||||||||||||||
| Coupe | Putra | ||||||||||||||||||||||||
| Pick-up | Arena / Jumbuck | ||||||||||||||||||||||||
| Microvan | Juara | ||||||||||||||||||||||||
| Compact MPV | Exora | ||||||||||||||||||||||||
Subscribe to:
Posts (Atom)
