PROTON NEEDS TO GO GLOBAL TO ACHIEVE ECONOMIES OF SCALE, SAYS DR M

From Umi Hani Sharani

GENEVA, March 3 (Bernama) -– Malaysia's national carmaker, Proton Holdings Bhd, needs to intensify its global footing to achieve economies of scale, said its adviser, Dr Mahathir Mohamad.

Therefore, he said, Proton was continuing to strengthen its export programme by
debuting a series of concept cars designed to appeal to the world market.

Dr Mahathir said the concept cars were a departure from Proton’s philosophy of
making cars for Malaysian consumers first, before thinking of exporting them.

"We used to build cars for Malaysia first, then export them. So we had
difficulty in going global. This time, we are designing this car for the world
market and can still use it for Malaysia.

"With a small number of less than half a million yearly for the Malaysian
passenger car market, we can’t achieve economies of scale.

"Therefore, we have to expand a little in order to present a new Proton for the
world market," he told Malaysian media at the 80th Geneva International
Motorshow here Tuesday.

Proton group managing director, Datuk Syed Zainal Abidin Syed Mohamed Tahir,said
the carmaker needed to make a quick strategic move to avoid missing the
opportunity to be a global player.

"Today we are not going to be a local player anymore. We need to work smartly
and adapt," he said, adding that it was better to build cars that were
marketable in other countries.

Citing the case of Proton Saga, which had to go through 200 changes before it
could be exported to the West, Syed Zainal said that should not happen again.

"After a quarter of a decade in the industry, Proton should be able to
strengthen its position, among others via a strong management, and not succumb
to the same fate as General Motor," he said.

Proton started with an initial investment of only RM480 million 25 years ago.
Since then, it had evolved and given a return of RM4 billion and another RM18
billion of income to the government.

On the hybrid concept cars, Dr Mahathir said they were designed in a way that
could also be used with other power trains such as electric-powered and the
conventional internal combustion engine, and this would make them more
attractive to the Western market.

He said although it would take about three years before a concept car could go
into production he has asked for it to be expedited.

"I tell them we must do it quickly because I’m getting old," he said in jest.

The car, designed in collaboration with Italy’s car interior designer,
Italdesign Giugiaro, could be produced in six variants, but only three would be
unveiled at the motor show.
-- BERNAMA