VW-Proton Deal Off!

As expected, Proton's partnership deal with VW has finally called off, after months of negotiating. I don't really feel dissapointed as this has been expected since long time ago. For some reason I got a feeling that this deal would not happen at all. After few attempts trying to negotiate a deal, Proton is still unable to comes to term with VW that VW will gain full control upon its takeover bid.

I've heard some rumour that Proton is reluctant to let VW gain control of its operations and for their own egoistic, they just can't let VW gain the control of Proton. So for that reason, Proton is still unable to find a partner, or an investor to invest in their plant. Moreover the management of Proton from top management ill the bottom level is all a disease to its operationals.

Corruptions, incapability, mis-management, without long term view or prospect, fancy thinking, unrealistic thinking, poor control and many more issues had contributed to all its problem now, and yet they still don't realised it until today. Yet they still claiming that their business has started to turn good this year and they are capable to sustain its operation without foreign investor's help. It's all nonsense talk that trying to convince the nation and cover up their failure to lure a foreign partnership.

From an outside source, it is known that Malaysia should not have produce car in the first place simply because Malaysia's population is not high enough for it to produce its own car. It will take at least 20 years to recover back the costs of its products, which is the Proton Saga. Until today we still can see the similarity in this, which is the Proton Iswara. Now, 2007 is the 22nd years of its production, and they already recoup back its costs for this line, and they are now planning for its replacement car from next year onwards.

Country like Australia did planned to produce their own car, but due to this reason, they call it off. Australia does have a similar population as Malaysia, and if they think it is not feasible to produce car, why would Proton think it's feasible to produce? For 'Malaysia Boleh'? For their faces egoistic sake?

Secondly is Proton product has no quality control at all. Right from the very first model until now, the quality is so poor that it is known as a 'Milo tin' car. The quality from its engine to all the accessories is of poor standard product, or rather reject product, so they would be able to sold at lowest possible price. But to be honest, Proton car prices are not cheap now comparing to foreign car and its quality and safety features.

Another point is, for its Gen 2 car, I think it's a complete failure project, and all Gen 2 car came out from factory is without proper QC checked. They rushed the product in order to get them on road in the first instant. With this a lot ofGen 2 were recalled back to factory for replacement parts here and there. Some even get their car changed because it's irrepairable.

Proton has been putting up stickers on their car stating its car contained Lotus Engineering, Lotus Handling Engineering etc. All this is just a sticker and in actual fact, there is non of these thing exists in the car. They are able to put up such stickers simply because they cought over Lotus and making use of their name to boost its sales. In actual fact, all the Proton cars use sub-standard product in their cars.

As for the called off deals with VW, Proton thinks they have too much to lose if VW taking over the operational side of Proton. For them they would be losing control of the company and also their ego. This is a Malaysian car, and it can't be controlled by a foreign company. So they have no choice but to forced off foreign investor. Mitsubishi is another example. They pulled out long time ago after knowing such scenario would happened.

Just look at UK's Rover cars, they had been took over by BMW for few years, and guess what! BMW took over Rover purely because they would want the Range Rover 4x4 technology, which is famous for in 4x4 around the world, and in succeeding of getting the technology. Finally they came out with their own 4x4 product, X5 series and then sold off Rover because Rover has been losing money all the while since its taking over.

UK Government has no choice but taking over Rover back because it's a product of UK and the government can't see it collapse. Then what happen? Few years after taking over from BMW, UK government too was forced to call it quit, and let it go burst simply because they could not sustain the lost incurred by Rover year by year.

The same would happen in Malaysia Proton if it is not carefully dealed with. From what I could see, it will only be the same way as Rover of UK and UK government. Maybe, just maybe Malaysia government will not call it quit because it's one of the proudest Malaysian's 'Malaysia Boleh'!