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DannyK
V12 Member
China
6663 Posts |
 Posted - 17/05/2007 : 11:24:00 AM
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By Fauziah Ismail
fauziahi@nst.com.my
May 17 2007
PROTON has asked the government for another RM16 million to carry out its consolidation exercise.
Under this voluntary separation scheme, for which Proton has already been given RM10 million to execute, car dealers were offered RM150,000 in “relief assistance” to close their Proton dealer ships.
But sources said many car dealers had snubbed it because the offer was too low.
They said some dealers had invested a minimum of RM200,000 to set up their operations.
Some dealers have written formally to Proton asking for more while others have requested for amounts of up to RM500,000, through the dealers’ association..
Sources said Proton had proposed to increase the relief assistance from RM150,000 to RM300,000 per dealer.
To ensure fairness, sources said, dealers who had already accepted Proton’s earlier offer would also be entitled to the higher amount.
Last month, Proton managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said the company was on track to downsize its network of dealers nationwide by 20 per cent by the middle of this year.
As of March, Proton had 186 dealers under its sales and marketing arm, Proton Edar Sdn Bhd (PESB), and 97 dealers under Edaran Otomobil Nasional (EON).
In the first phase of the VSS, targeted for completion next month, a total of 102 dealers were offered but only 36 confirmed acceptance.
Proton plans to reduce the number of dealers from 293, as of March, to 247 by the middle of the year and 227 by year-end.
The rationalisation exercise is part of Proton’s initiatives to enhance operational efficiency, cost competitiveness and value to customers.
Consolidation of nearly 400 Proton dealers nationwide is unavoidable as persistent poor sales have caused losses to many of them.
Proton sold and registered 115,546 cars in 2006 with a drop in market share to 31 per cent from 40 per cent in 2005.
Proton Edar Dealers Association president Wan Ahmad Sepwan had been quoted as saying that about 70 per cent of Proton Edar dealers had posted losses from early last year to the present.
“Our members have lost more than RM20 million or an average loss of more than RM240,000 each since then,” he said.
“Peda believes the number of Proton dealers, which is close to 400 nationwide, is too big for one brand.”
http://www.btimes.com.my/Current_News/BT/Thursday/Latest/20070517020404/Article/
May 16, 2007, 10:53PM
Report: Proton Wants to Pay Off Dealers
© 2007 The Associated Press
KUALA LUMPUR, Malaysia — Malaysia's ailing national carmaker Proton has asked the government for more money to pay off unprofitable dealers who have agreed to close shop, a newspaper reported Thursday.
Proton intends to double the "relief assistance" for dealers that chose to close down and asked the government for an extra 16 million ringgit ($4.71 million), the New Straits Times said quoting unidentified sources.
The company will now pay 300,000 ringgit ($88,000) after many of the dealers said the earlier offer of 150,000 ringgit wasn't enough, the Times said.
A Proton spokesman could not immediately confirm the report and said he would call back later with information.
Proton has already received 10 million ringgit ($2.94 million) from the government to consolidate its business. It plans to decrease the number of dealerships by 20 percent by the middle of the year.
The newspaper report said so far only 36 of about 100 dealers slated to be closed have accepted the lower offer. Others are asking for up to 500,000 ringgit ($147,000) in compesation. Those that accepted the lower offer will also be entitled to the revised amount.
In April, Proton managing director Syed Zainal Abidin Syed Mohamed Tahir said Proton was on track to downsize its network of almost 400 dealers nationwide, the report said.
The consolidation is necessary because continuous poor sales have caused losses to many of the dealers, the Times said.
Proton reported a net loss of 281.5 million ringgit ($80 million) in the quarter that ended Dec. 31, 2006, compared to a net profit of 86.5 million ringgit ($25 million) a year earlier.
Proton is in negotiations with both Volkswagen AG and General Motors Corp. to form a strategic alliance to boost the carmaker, but no headway has been made.
Late last month Prime Minister Abdullah Ahmad Badawi said he still had to meet with Volkswagen executives to discuss a possible partnership.
For years, the company thrived in a protected environment that included high duties on imported vehicles and forced many Malaysians to buy Proton cars. But the duties have been slowly lowered in line with a regional trade agreement, and more Malaysians have sought out imported vehicles.
http://www.chron.com/disp/story.mpl/ap/fn/4811439.html
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ahboy@Sith_Lord HamsapNet
It's time to stop the dominance of the Malaysian car market by the Japanese marques! We need more buyers of the Continental and Korean marques! 
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DannyK
V12 Member
China
6663 Posts |
Posted - 17/05/2007 : 11:24:31 AM
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Siao, ar?!    |
ahboy@Sith_LordHamsapNet
It's time to stop the dominance of the Malaysian car market by the Japanese marques! We need more buyers of the Continental and Korean marques!
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Chips
Administrator
Malaysia
21989 Posts |
Posted - 17/05/2007 : 11:38:51 AM
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| There's actually someone to blame for this particular issue - the man who bought over USPD for Proton to create PE. The sales volume did not increase to match the increase in number of dealers and it was inevitable that eventually, many would be suffering as sales per dealer declined. Many people who saw it as a stupid idea were shouted down but I guess today, they are vindicated - but we the taxpayers pay for that stupid move. |
Chips |
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mug shoemaker
V6 Member
289 Posts |
Posted - 17/05/2007 : 2:42:31 PM
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| I dun understand why they have to be paid to close down? |
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demio121
V8 Member
543 Posts |
Posted - 17/05/2007 : 3:09:52 PM
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quote:
Originally posted by mug shoemaker
I dun understand why they have to be paid to close down?
why???
where else can you get compensation for a bridge that was never build??? where else can you build highway and guarantee profit (regardless of traffic volume)???
I guess there are really some businesses that is risk free with guarantee return. |
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mug shoemaker
V6 Member
289 Posts |
Posted - 17/05/2007 : 3:15:03 PM
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 aiyak, I forgot after living here over 30 years......I still need to ask meh ? |
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demio121
V8 Member
543 Posts |
Posted - 17/05/2007 : 3:57:44 PM
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hmmm.... the link to the Business Times is not working. It was this morning.
someone is not happy with this piece of news breaking out. |
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chenaf
1-cylinder Member
Malaysia
19 Posts |
Posted - 17/05/2007 : 4:38:28 PM
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| The link is now off. u r right Hmmmm someone is difinitely not very with the piece of news leaked out. The editor must kena kau kau now from the politikus. Wonder whether they have got the Cabinet approval for this 'VSS' payment. |
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flee
V12 Member
Malaysia
4075 Posts |
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lp16
V8 Member
585 Posts |
Posted - 17/05/2007 : 5:15:16 PM
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Maybe it's our Gahmen policy to make Bolehland attractive to foreign investors. No risk biz, money back guarantee..... Build something that cracks and get paid repairing it. If biz goes bankrupt, still can get paid and if not satisfied, can write in for more!
Weird/crazy/stupid Gahmen policies we have!  |
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cvchua
V12 Member
Malaysia
2574 Posts |
Posted - 17/05/2007 : 6:06:51 PM
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| quite a interesting policy by the gomen. I never knew there is such a thing where if ur business had to be shut down, u will be compensated. Hmm... may be we all should be in business then... its down side risk being guranteed by the gomen... when u untung u have it all by urself... when ur business is not good to the extend of closing u can cry to the gomen.. and u will be laughing to the bank with compensation.... no wonder proton is proton!! hahahah... |
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Gary Yap
V12 Member
Malaysia
2639 Posts |
Posted - 17/05/2007 : 6:28:24 PM
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| You have to understand, they have to include the bumis to participate and also to give them a safety net. Go check if income tax still owe you money. Better take it out cos our money is there. |
So let it be written so let it be done, I'm sent here by THE CHOSEN ONE. |
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kwkhong
V8 Member
Malaysia
1575 Posts |
Posted - 17/05/2007 : 7:42:22 PM
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i went to proton the other day and everybody seemed to know this was carried out. However i didn't know that they snubbed the VSS offer.
i was told 40 took up the offer and wanted another 1k for each 26k Saga order they took...dunno what happened after that.
by the way i have a question, when proton asked 16m more, where will the 16m come from? our taxes? or our epf? or the duties we paid for non-proton cars?
another question, is this VSS even rational? I mean are we stupid or something? i can't seem to understand the rationale of a business running at a loss can ask for "relief" from government to compensate their losses...i., i ., i., dunno lah, what the hell is happening nowadays....never mind lar, i just hope someone can help me when i'm in trouble in future just. |
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Chips
Administrator
Malaysia
21989 Posts |
Posted - 17/05/2007 : 8:22:42 PM
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I think that businessmen who are true businessmen with pride will accept their bad luck if a business goes down the drain and try to see how to recover. But to ask for COMPENSATION for business failure, that's a sign of a lousy businessman.
But you are right, in Malaysia, it seems that when a business fails and goes into debt, rather than letting it go out of existence since it is obviously a failure, the failure is kept alive by government support and those who caused the failure are allowed to continue their jobs... and they might even cause the company to fail again! So a lot of national funds are being wasted on such 'rescues'.
This is actually the same mentality that has brought Proton to the position it is in today - the mentality of 'if we fail, never mind, there will be no suffering because the govt will give us more money'. In this way, no one cares about performance and competitiveness. No one gets punished for failure. How nice if all the rest of us can enjoy such an easy life. But for the rest of us, if you screw up and lose money, you are out and you learn a lesson quickly and you try not to make the same mistakes again because being jobless is no fun. |
Chips |
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cvchua
V12 Member
Malaysia
2574 Posts |
Posted - 18/05/2007 : 12:55:01 AM
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i bet most of the dealers who existed in the 90s must have made their millions over and over. While i think it is only logical that all businesses have a downside to consider. In any event, if u make money u wouldn't give back to proton neither you should be compensated should your luck in the business doesn't seems to work out.
But then again, malaysia is a special country... tatz why i try not to contribute to EPF.... i think i m willing to consider the downside of investment and brave enough to do my own investment to hopefully generate positive returns....  |
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sphuah
2-cylinder Member
Malaysia
27 Posts |
Posted - 18/05/2007 : 08:56:42 AM
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the G's policy sucks!!!!
taking our hard earned tax money and feeding these donkeys!!!
No wonder Proton's surplus cash of 1.+b is now almost depleted. Never in this world I have heard people being compensated to close down a business, what about the times when they made money???? Perhaps BPR should look into this matter!!!!!!! THERE IS NO FARENESS IN BUSINESS ANYMORE IN MALAYSIA!!!!! |
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lp16
V8 Member
585 Posts |
Posted - 18/05/2007 : 10:46:17 AM
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I really don't understand why the Gahmen always pump in $$ to rescue failing companies.... Pride? What pride? It's a huge price to pay. They must remember the $$$ comes from taxpayers!
Maybe they shd appoint a chinese to help proton or nego with a buyer. Sick to even read abt potential merger! |
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DannyK
V12 Member
China
6663 Posts |
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flee
V12 Member
Malaysia
4075 Posts |
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lp16
V8 Member
585 Posts |
Posted - 18/05/2007 : 2:39:53 PM
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It just makes me sick reading the blog! Where in the world; perhaps the whole universe can one be guaranteed a profit when doing biz? Potong Dealers are also a bunch of @$$hole! Shd ask for RM1mil each since can ask for more! Cronies profit, rakyat die! Is this how our Guv operate? Toll goes up, flour becomes more expansive, everything goes up, blood pressure too!
Guv shd have the guts to tell these blood suckers to go fly kite. 20 years back, the same blood suckers made tons of $ when they're forcing buyers into taking unwanted "accessories". Now? Ask mama for money? Even lower than single cell animal!
With these type of mentality, how are we, as a nation going to move forward? No keris can help us! |
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DannyK
V12 Member
China
6663 Posts |
Posted - 18/05/2007 : 5:20:55 PM
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quote:
Originally posted by lp16
With these type of mentality, how are we, as a nation going to move forward? No keris can help us!
I remember someone wrote a book that says that if Bolehland and the Lion City goes to war, Bolehland would fall within a short time.
What keris? 
Give someone a Samurai sword or even a cheap-cheap Chinese sword and he'll slain the Malay 'warrior' who's been brandishing the keris in political assemblies easily. 
It's now 2007, 13 years to go to (TRY to) achieve the almost forgotten Vision 2020, we need no keris, we need brains, competitiveness and efficiency, not (false) pride and (blind) loyalty. |
ahboy@Sith_LordHamsapNet
It's time to stop the dominance of the Malaysian car market by the Japanese marques! We need more buyers of the Continental and Korean marques!
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Proton wants another RM16m (?!) to pay off dealers
