Into the arms of the Rising Sun: Malaysian national car maker Proton cooperates with Suzuki

[Aepsilons]

KUALA LUMPUR, Malaysia – Malaysia's struggling national carmaker Proton is joining forces with Japan's Suzuki Motor Corp. in its latest bid to boost sales.

Proton on Monday inked a memorandum of understanding and license agreement with Suzuki to "form a long term strategic collaboration and partnership."

Proton Chairman Mahathir Mohamad, who is a former prime minister of Malaysia, said partnership details will be ironed out by next year.

He said Proton may initially sell rebranded Suzuki models before exploring the possibility of jointly developing new models in the long run.

Loss-making Proton, once king of the road in Malaysia, is struggling to boost sales after its fortunes dwindled due to greater foreign competition.



Malaysia's national carmaker Proton ties-up with Japan's Suzuki to expand compact car business | Fox Business

 

[Aepsilons]

Comment: This is the first step , the second step should be Suzuki subsuming Proton Corp and make it a subsidiary of Suzuki Motor Corp.

Merdeka !

 

[Indika]

Why should govt be involved in manufacturing cars , is it a essential service that ppl cant live without ?.

Govt should leave manufacturing to private sector and allow more foreign players in for competition. Then better cars will be produced. India had the same collaboration model till 1990's with suzuki running riot with 2 models. With introduction of many other manufacturers things changed to better.

 

[70U63]

1. Malaysia government can't afford to close down the national car maker (Proton) because it will cause a lot people losing their job. When people not happy with them = no vote = hurray to demoncrazy ideology.
2. I feel very sad they want to join venture with Suzuki. I don't find the product line-up interesting except the swift. Not saying Proton have the luxury to choose which partner they want.
3. Suzuki might just ask Proton to assemble their car instead of wearing Proton badge, what's the point...
4. NEP - impossible the country will sell the Proton to outsider. Just laugh at us (for our incompetency) if you want.

 

[Aepsilons]

1. Malaysia government can't afford to close down the national car maker (Proton) because it will cause a lot people losing their job. When people not happy with them = no vote = hurray to demoncrazy ideology.
2. I feel very sad they want to join venture with Suzuki. I don't find the product line-up interesting except the swift. Not saying Proton have the luxury to choose which partner they want.
3. Suzuki might just ask Proton to assemble their car instead of wearing Proton badge, what's the point...
4. NEP - impossible the country will sell the Proton to outsider. Just laugh at us (for our incompetency) if you want.

The collaboration is definitely a welcome step, however, my conservative prediction is that Proton will be be subsumed. All it takes is for Japanese investors to gain 51% share of Proton stock, and , well.

Good article btw.

Proton to get Suzuki tech for new models - The Rakyat Post - The Rakyat Post

 

[70U63]

Like i said before, there is no way they going to let go the control of the car maker. We might as well close Proton down if it happen, and just let oversea investor use the existing infrastructure.

Remember last time they talked to VW and GM, they don't want to let go the control which was one of the factor why the collaboration failed.

They only way it will happen (for the good) is when the whole political system reform successfully. I think you know the big businesses in Malaysia have very close relationship to the politician and those powerful behind the scene.

 

[Aepsilons]

Like i said before, there is no way they going to let go the control of the car maker. We might as well close Proton down if it happen, and just let oversea investor use the existing infrastructure.

Remember last time they talked to VW and GM, they don't want to let go the control which was one of the factor why the collaboration failed.

They only way it will happen (for the good) is when the whole political system reform successfully. I think you know the big businesses in Malaysia have very close relationship to the politician and those powerful behind the scene.

Perhaps you need to understand that the last time VW and GM talked to Proton was several years ago, Proton, currently, is in the verge of collapse. Anyways, even if Suzuki Motoro Corp was to subsume Proton (most likely), the titular control of Proton would remain with the Malaysian side; its just that the fiscal policies and decision making (strategic management, as we say) would lie in the Japanese Brain. So to say.

I think its a win win relationship. Proton stays afloat, will most probably flourish, the Malaysians keep their jobs, and Suzuki embeds itself ever deeper in Malaysia.

 

[70U63]

No point to do that, unless the Proton is no longer state-owned company.
I don't want Proton to become like some car manufacturers in Australia, which the gov need to pump money into it just for sake of keeping the jobs for the people (& engineering capability). After so many years, all decide to leave by 2017.

Perhaps you need to understand that the last time VW and GM talked to Proton was several years ago, Proton, currently, is in the verge of collapse. Anyways, even if Suzuki Motoro Corp was to subsume Proton (most likely), the titular control of Proton would remain with the Malaysian side; its just that the fiscal policies and decision making (strategic management, as we say) would lie in the Japanese Brain. So to say.

I think its a win win relationship. Proton stays afloat, will most probably flourish, the Malaysians keep their jobs, and Suzuki embeds itself ever deeper in Malaysia.

 

[Aepsilons]

No point to do that, unless the Proton is no longer state-owned company.
I don't want Proton to become like some car manufacturers in Australia, which the gov need to pump money into it just for sake of keeping the jobs for the people (& engineering capability). After so many years, all decide to leave by 2017.

If Proton is subsumed into Suzuki Motor Corp, then Malaysian Government no longer has to "pump" money into it.

 

[powastick]

If Proton is subsumed into Suzuki Motor Corp, then Malaysian Government no longer has to "pump" money into it.

Suzuki will regret it when it happens, trust me, unless you guys take over 100%. Proton sell cars in China using Lotus brand. Tony Fernandez is the one who promoted the brand value, and the government swoop in.

Gold Gen 2 aka China Lotus L3

 

[macnurv]

1. Malaysia government can't afford to close down the national car maker (Proton) because it will cause a lot people losing their job. When people not happy with them = no vote = hurray to demoncrazy ideology.
2. I feel very sad they want to join venture with Suzuki. I don't find the product line-up interesting except the swift. Not saying Proton have the luxury to choose which partner they want.
3. Suzuki might just ask Proton to assemble their car instead of wearing Proton badge, what's the point...
4. NEP - impossible the country will sell the Proton to outsider. Just laugh at us (for our incompetency) if you want.

Of course government will never shut Proton down, not only loss of jobs but the huge revenue government generates by imposing up to 300% import duty on vehicles all in the name of protecting Proton. Lets not forget the biggest profiteer racket in Malaysia is being run by government.

In Malaysia, Suzuki markets a very limited range of its products but that does not mean they don't have much to offer.
Mitsubishi finally ended its long running partnership program with Proton few years back, how competent Proton is that is something everyone knows. After 35 years they still can't produce one single product worth mentioning. Latest failure was inability to design new Perdana, instead they rebadged a Honda Accord.

The collaboration is definitely a welcome step, however, my conservative prediction is that Proton will be be subsumed. All it takes is for Japanese investors to gain 51% share of Proton stock, and , well.

Good article btw.

Proton to get Suzuki tech for new models - The Rakyat Post - The Rakyat Post

You really don't know Malaysian government it seems. They will never allow any outsider to takeover Proton, its a cash cow for them and a source of handing out favors resulting in votes.
There is a reason why AirAsia's headquarters is in Indonesia not in Malaysia, just look at the Garnier Bread takeover. Mitsubishi gave up on them, Suzuki might do the same after sometime. For now it seems Proton might provide some penetration in Malaysian market for the brand.

Perhaps you need to understand that the last time VW and GM talked to Proton was several years ago, Proton, currently, is in the verge of collapse. Anyways, even if Suzuki Motoro Corp was to subsume Proton (most likely), the titular control of Proton would remain with the Malaysian side; its just that the fiscal policies and decision making (strategic management, as we say) would lie in the Japanese Brain. So to say.

I think its a win win relationship. Proton stays afloat, will most probably flourish, the Malaysians keep their jobs, and Suzuki embeds itself ever deeper in Malaysia.

Again Nihonjin, you are over estimating the intention of Protons and Malaysian government. Proton produces toilets on wheels and it will keep on doing so because like most Malaysian government owned businesses its not based on competency but on race and politics.

No point to do that, unless the Proton is no longer state-owned company.
I don't want Proton to become like some car manufacturers in Australia, which the gov need to pump money into it just for sake of keeping the jobs for the people (& engineering capability). After so many years, all decide to leave by 2017.

Thats is what they like to say, but its still a state owned entity just look at the majority of people hired on key posts. Proton and Perodua are substandard manufacturers who for the most part sell under equipped cars with less safety features at a higher price to Malaysian consumers. Their monopoly benefits the government as it can tax heavily on import of vehicles, thus win win situation for them.

This pretty much sums up my feelings toward Proton and Perodua LOL

 

[Echo_419]

KUALA LUMPUR, Malaysia – Malaysia's struggling national carmaker Proton is joining forces with Japan's Suzuki Motor Corp. in its latest bid to boost sales.

Proton on Monday inked a memorandum of understanding and license agreement with Suzuki to "form a long term strategic collaboration and partnership."

Proton Chairman Mahathir Mohamad, who is a former prime minister of Malaysia, said partnership details will be ironed out by next year.

He said Proton may initially sell rebranded Suzuki models before exploring the possibility of jointly developing new models in the long run.

Loss-making Proton, once king of the road in Malaysia, is struggling to boost sales after its fortunes dwindled due to greater foreign competition.



Malaysia's national carmaker Proton ties-up with Japan's Suzuki to expand compact car business | Fox Business

Hope this JV will achieve the same lvl of prosperity as the Indo-Japanese Maruti Suzuki

 

[Indika]

Suzuki-Proton deal may bring benefits for Maruti -Economic Times
suzuki in india is already getting ready to provide CKD's. It will take years for them to pour more money into real r&d and come up with a local product. Most of these companies already have sufficient capacity built outside.

Of course government will never shut Proton down, not only loss of jobs but the huge revenue government generates by imposing up to 300% import duty on vehicles all in the name of protecting Proton

Once suzuki starts manufacturing they should reduce the duty to 15% or so. It will heat up the competition and bring better cars to consumers. Its not the jobs at the main plant but the ancillary industries that provide more employment. As more manufacturers come in they will localize the content to reduce the cost sourcing them to local industry. Then govt can shut the tap on proton.

By the way even maruti-suzuki started out in similar fashion like proton in early 1980's by late sanjay gandhi. Things never went any where (only 2 pathetic tin models) till 1995 once liberalization took place and more manufacturers came in, suzuki started feeling the heat and they brought in more models.

 

[macnurv]

Once suzuki starts manufacturing they should reduce the duty to 15% or so. It will heat up the competition and bring better cars to consumers. Its not the jobs at the main plant but the ancillary industries that provide more employment. As more manufacturers come in they will localize the content to reduce the cost sourcing them to local industry. Then govt can shut the tap on proton.

By the way even maruti-suzuki started out in similar fashion like proton in early 1980's by late sanjay gandhi. Things never went any where (only 2 pathetic tin models) till 1995 once liberalization took place and more manufacturers came in, suzuki started feeling the heat and they brought in more models.

Highly unlikely, the import duty generates a sizable revenue annually, if my memory serves me correctly its upward f 30 billion ringgit. That is serious source of income and Malaysian government is highly unlikely reducing any import duties.
You are correct, it is also the matter of supply chain for all different parts. But Malaysia uses government owned businesses as patronage system as well, MAS that national carrier had over 20,000 staff.
Malaysia lacks economic liberalization policies, government actively works against competition and supports monopolies.

 

[Indos]

Highly unlikely, the import duty generates a sizable revenue annually, if my memory serves me correctly its upward f 30 billion ringgit. That is serious source of income and Malaysian government is highly unlikely reducing any import duties.
You are correct, it is also the matter of supply chain for all different parts. But Malaysia uses government owned businesses as patronage system as well, MAS that national carrier had over 20,000 staff.
Malaysia lacks economic liberalization policies, government actively works against competition and supports monopolies.

As ASEAN Free Trade will come soon, so I guest many Japanese cars can come to Malaysia with low tax from Thailand and Indonesia (Toyota) next year.