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Friday, July 26, 2019

The X70 is not a Farce, Proton is.

Someone wrote :

"The farce that is the Proton X70

The first thing to remember is that the new Proton X70 is not a Malaysian car, but one produced in China by Geely - and it is over seven months after the X70 was launched in Malaysia and over two years since Geely took a 49 percent stake in Proton. Let me emphasise that - two years later and we don’t have a Malaysian X70.

The X70 appears to be Proton Bhd’s saviour by making it profitable again, but so far it is farcical to think a Malaysian car is doing this. Even after it is “manufactured” in Malaysia, most likely next year, it would be pretty much a rebadged car and it would be many years before it becomes truly Malaysia..."

My comments : The illogic and non understanding of business and manufacturing behind this statement above is quite mind boggling. 

Neither was the Proton a Malaysian made car. The Protons were rebadged Mitsubishis. Have you forgotten? Except maybe for the Waja. And the last Proton Perdana was a rebadged Honda Accord.  


Proton Inspira Bin Abdullah aka Mitsubishi Lancer

The difference here is that Geely is running Proton now. Proton is just a manufacturing plant - hopefully more design work will take place here in future for Geely and Volvo cars. Geely owns Volvo.  

And it is Geely's own technology. Just like Toyota - Daihatsu has been running the Perodua plant. Perodua is NOT a Malaysian car. It is a Toyota - Daihatsu car. The Perodua Aruz is a Toyota Rush rebadge. 

It took a year and five months because Geely had to retool the Proton plant to prepare the plant to start manufacturing the "Geely"  X70. Everything was done in their timely schedule. Geely was able to change the quality of the food served to workers in the Proton canteen in just two weeks. 

We do have a Made in Malaysia X70. Just like we have had Made in Malaysia Proton Inspira bin Abdullah aka Mitsubishi Lancer. No one seemed to complain then. Or Proton Perdana Bin Abdullah aka Honda Accord.

The most important thing (for now) is that the manufacturing plant in Tanjong Malim is still operational and the workers jobs are secure. Few workers have lost their jobs despite the Geely takeover.  

If Geely had not bought over Proton, the plant may have had to close. Thousands of workers would be unemployed.  

If our universities can produce design engineers and automotive engineers who can compete and design engines and cars there is no reason why Geely would not switch some design activity to Malaysia. For all their cars  Geely, Volvo etc. 

Honda has an extensive manufacturing plant in Melaka. 
Toyota - Daihatsu has their local manufacturing plant in Perodua - Rawang. 
Geely has their local manufacturing plant in Proton - Tanjong Malim.  

These are all Made in Malaysia cars. 

The nature of the car business now is that unless you have say THREE MILLION unit sales a year you cannot survive.   That is why Volvo was bought by Geely.  Despite having world class technology Volvo could not survive on their own. 

Not only do they need the economies of scale they also need to make interchangeable car chassis and models.  That is why in Europe Peugeot, Renault, Citroen and Fiat share some of the same designs and chassis.  Rolls Royce and Mini Cooper now use BMW engines. 

It is truly a global supply chain.  Malaysia must be an integral part of the  global supply chain - of many, many industries. 

Malaysian entrepreneurs you must understand this and look for opportunities to become part of the global supply chain. Dont wait for the government to do anything. They do not seem to know anything. 

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