Proton Saga Malaysia - LATEST!!

For nearly three decades, Malaysia’s national car project, Proton, has suffered through endless troubles, nearing its demise several times only to be propped up again and again by the government.

The government has regularly sought foreign buyers to come in and save the project, Perusahaan Otomobil Nasional Bhd. The carmaker has cost the country’s consumers billions in lost opportunity costs from the steep tariffs levied against other carmakers in addition to the losses the company made on its own, estimated at US$2-3 billion, plus the cost of building its factories. The preferential tariffs haven’t stopped consumers from turning to other makes anyway.

In January, DRB-Hicom Bhd, controlled by billionaire Syed Mokhtar al-Bukhary, a longtime Mahathir friend and United Malays National Organization crony, agreed to take the ailing carmaker off the hands of Khazanah Nasional Bhd., the state-owned investment fund which owned 42.7 percent of the shares after taking the company over during an earlier period of distress. The subsequent events have raised many questions of insider trading, none of which have ever been addressed either by Proton, Hicom or Bursa Malaysia, the country’s stock exchange.

In the two months prior to the announcement of the sale, Proton’s shares went on a wild ride, beginning on Nov. 14, when the shares traded thinly, at only about 3,000 per day at a price of around RM2.70 (US88 cents)

According to official announcements by Bursa Malaysia, the Kuala Lumpur main board, the shares took off on Nov. 15, rising to RM3.21 on volume of 4.3 million traded. Over the next 12 days, daily volumes averaged 4.4 million shares. By Dec. 5, volumes increased to 20 million shares per day – 60 times the November average - with the price rocketing up by nearly 25 percent over the period to RM4.50 per share.

Proton was the focal point of Mahathir’s dream to turn Malaysia into an industrial powerhouse built on the country’s considerable natural wealth of rubber, palm oil and crude. The car was one of a flock of mega-projects that Mahathir forced onto Malaysia in the 1980s and 1990s, creating steel mills, the  US$475 million Petronas Twin Towers in Kuala Lumpur, a US$5.5 billion Putrajaya administrative capital, the US$2.4 billion Kuala Lumpur International Airport, the US$15 billion Multi-Media Super Corridor which was supposed to eclipse Silicon Valley. The Bakun Dam in Sarawak was to generate enormous amounts of electrical power to be piped through 1,500 kilometers of underwater cables to West Malaysia. A vast network of highways was flung across the country.

Japan’s Mitsubishi Corp persuaded Mahathir to retool an even-then ageing Lancer in 1985 and put an Islamic star and shield on the hood to create the first Proton Saga. Mitsubishi, however, quit in 2004 and sold its 16 percent stake back to Proton Holdings Bhd, the parent holding company.

After Mitsubishi pulled out, the absence of newer models and the inability to find a reliable and technically sound foreign partner meant that sales began to decline. Although Proton had more than 60 percent of the market in 2002, that fell to 30 percent by 2006. It has hovered around 30 percent ever since, despite the preferential government treatment. A 2007 Wall Street Journal-Asia report suggests that Proton burned up RM300-500 million ringgit annually.

Proton's Q1 earnings surge

PETALING JAYA: Proton Holdings Bhd recorded better earnings for the first quarter ended June 30 (Q1) year-on-year due to higher sales and better product mix.

The national car maker’s net profit surged 55.2% to RM84.7mil in Q1 versus RM54.5mil in the same quarter last year. Revenue rose 23.6% to RM2.29bil against RM1.85mil.

Proton said in a filing to the stock exchange that in line with the improved market sentiments, its domestic sales volume grew 17% due to demand for its three core models - Saga, Persona and Exora.

“The group will intensify its marketing initiatives for the current product offerings as well as refreshers and new models to increase sales volume.

“Internationally, the group will focus on improving sales volume through planned launches of its core models in key markets,” it said.

Proton saga for taxi model??

Back in May this year Datuk Noh Omar (and his Ministry of Entrepreneur and Cooperative Development) suggested that Proton develop a new vehicle designed to be used as a taxi similiar to the London Black Cab. The whole idea is that the Malaysian taxi system switch to this new standardized model rather than having multiple models like the Proton Saga, Proton Waja, Naza Citra, Renault Espace, Proton Perdana and even premium Hyundai Sonata and Nissan Cefiro taxis. According to Datuk Noh, this will help “standardize the image of taxis” in Malaysia.

Proton will be looking into the feasibility of the request and if possible, the Ministry of Entrepreneur and Cooperative Development will help “ensure take-up”. Ideally the taxi should also have a factory-fitted NGV system rather than with current taxis which have to retrofit the NGV system as an aftermarket addition to the car. In cars with smaller boots like the Iswara, the NGV tanks can take up a significant amount of boot space depending on the size of the NGV gas tank.

Firstly, the London Black Cab is only used in London. The rest of the UK, or rather the rest of the world uses conventional 4 door sedans or minivans as taxis. Do we really need Proton’s financial records to be plagued with yet another model that has a limited market?

Consumers purchase different types of cars for different needs, so taxis should use different models for different needs as well. A large and heavier taxi with lots of boot space and passenger room powered by a larger engine to move around with that extra capacity will be going around town wasting unnecessary petrol (or NGV) if it carries only one passenger on short trips most of the time.

A much better idea would be for Proton to offer a new taxi based on the new Proton Saga (sources inside Proton say one with a factory-fitted NGV system and a possible upgrade to a 1.6 liter engine is under development) for the purpose of short trips. Longer trips that require more passenger and luggage space can be serviced by larger models converted for taxi purposes like the Kia Rondo Taxi that we saw last year. It can be supplied by Naza Kia Sdn Bhd when it updates the Citra to the next generation Rondo. Just remove the option for the 3rd row of seats and use it for luggage.

On the matter of improving the images of taxis in Malaysia, the government can support this transition to the new models mentioned above by offering financial assistance and loans to taxi drivers for them to be able to afford the upgrade to a new generation of taxis easily. And while we’re at it, cut out the middlemen and give the taxi licenses to the people actually running the taxi services!

There is really no need to waste money and time on the R&D and production of a new specialised single taxi model that will serve nothing more than an ego boost to be able to say that we have our London Black Cab equivalent. It will be the case of the Eye on Malaysia emulating the London Eye all over again.

Proton's new KPIs achievable

The new headline key performance indicators (KPIs) announced by Proton Holdings Bhd is achievable as the company is already making steady inroads, especially in market share expansion and exports, according to MIDF Research.

New models planned, including the new Waja which is expected to make its debut in the coming months, will push the national carmaker's market share and revenue growth, it said in a
research note today.

"The mainstay of Proton's products remains the Saga and Exora and we expect it to remain as such for the foreseeable future," said MIDF Research, part of MIDF Amanah Investment Bank Bhd.

The new models are expected to open up greater sales opportunities that would translate into better market share and provide the boost to the company's revenue growth, it said.

Proton announced yesterday that it was targeting to achieve 20 per cent growth in revenue for the financial year ending March 31, 2011, under its headline KPIs.

Contribution of export sales to revenue is set to be 8.4 per cent while the domestic market share for passenger vehicle segment is targeted to grow at 33 per cent.

MIDF Research said Proton's current export markets are the African nations, the Middle East and countries in Asia Pacific region, including Australia.

"Proton is seen to stand a fair chance to convince Chinese buyers if they managed to sort out the pricing and product quality as the competition is stiff in China," it said.

According to MIDF Research, there are no major earnings surprises expected for the current financial year.

"Sales is improving, rising 18 per cent year-on-year to 80,126 units for first half 2010 with market improving to cross the 30 per cent level," it said. -- Bernama

Its not easy being Taxi Driver in Johor Bahru

Sometimes the direct route is to take if you are unemployed is to rent a car and a taxi driver. After all, if you are willing to work hard, you may be able to make a decent profit every day. Of course, providing we are willing to put in 12 hour shifts consistently, even on weekends.

In Malaysia (and especially in Johor Bahru), things get a little more complicated. And we list down exactly why it is not easy, a taxi driver in Malaysia.

First, if you are to the use of the device, your smile, roll their eyes in disbelief or passengers. The MR costs $ 2 departure, set 13 years ago, not even enough to buy you a plate of chicken rice. The additional fee of 10sen/200m is equally incredulous. cheap cheap!

And if you punish the most natural thing, something to turn off the meter and flat rate is, you can, if they are caught. In a particularly irritating day, you have a passenger from Singapore who missed it clear in the English rule and said: "Uncle, how can you not turn on the meter? Not deceive us, you need the meter!"

Price aside, there are the nagging questions that makes things even more difficult for a taxi driver in Johor Bahru.

There are few taxis in Johor Bahru away. You are taking a pause passenger side of the road. Suddenly someone knocks on your window - The man in white. The traffic police, the force of law or fact or a wink to you. However, you can be sure that your whole day is gone.

On clear days (when there is no man-in-White), undercover officers of the Council of Johor Bahru Transport Board can also give your car and do a spot check on you. If you do not wear a white shirt with long sleeves, or when taxi is not very clean, you risk a fine. Or, you can ignore.

And if people do not legitimate for you, you might have a chance with this kind of lawlessness. Johor Bahru unenviable about a crime.

Human factors aside, there's even more irritating questions that add to the difficulty.

The Proton Saga drive hardly seems like a good place to work, especially when you look across the street and taxi drivers in Singapore are the 2000cc engine Hyundai Sonata, Skoda and Toyota Camry the same. You get a terrible cramp leg of the clutch and back pain poor suspension. The windows are not tinted, and your right arm is similar to a driver of the trailer.

It gets worse at night. With the exception of the main roads, the roads are not lit well and work hard you really distinguish between a passenger in a Pontianak.

Once in 10 years, notes Mr. PJB Johor Bahru City Council or a big project. For example, the new CIQ Johor Bahru Wong Ah Fook Jalan throws all into confusion. You're confused, fear and helplessness. For a few days, ask for no passengers in sight. The only consolation? You are not the only one affected.

After mentioning that some of the bad things, a taxi driver in Johor Bahru, there is something positive to report. Mm .. Parking is expensive!