NationMaster - Encyclopedia: Proton (company)

Proton Holdings Berhad is the holding company for the Malaysian national carmaker Proton (Malay acronym for Perusahaan Otomobil Nasional, 'National Automobile Enterprise'), which was established in 1983 under the direction of the former Prime Minister, Tun Mahathir Mohamad. Proton is listed on the Bursa Malaysia. Proton corporate logo, qualifies as fair use. ... Public is of or pertaining to the people; belonging to the people; relating to, or affecting, a nation, state, or community; opposed to private; as, the public treasury, a road or lake. ... The Bursa Malaysia or Malaysia Exchange, MYX previously known as Kuala Lumpur Stock Exchange (KLSE, Bursa Saham Kuala Lumpur in Malay) dates back to 1930 when the Singapore Stockbrokers Association was set up as a formal organisation dealing in securities in Malaya. ... Year 1983 (MCMLXXXIII) was a common year starting on Saturday (link displays the 1983 Gregorian calendar). ... Nickname: Motto: Maju dan makmur (Malay: Progress and Prosper) Location in Malaysia Coordinates: , Country State Establishment 1857 Granted city status 1974 Government - Mayor (Datuk Bandar) Datuk Abdul Hakim Borhan From 14 December 2006 Area - City 243. ... Car redirects here. ... This article or section does not cite its references or sources. ... Look up revenue in Wiktionary, the free dictionary. ... ISO 4217 Code MYR User(s) Malaysia Inflation 2. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... Earnings before interest and taxes (EBIT), also known as operating income and operating profit, is a term used to describe a companys earnings. ... Image File history File links No higher resolution available. ... Net income is equal to the income that a firm has after subtracting costs and expenses from the total revenue. ... Image File history File links No higher resolution available. ... For the album by the Kaiser Chiefs see Employment (album) Employment is a contract between two parties, one being the employer and the other being the employee. ... A website (alternatively, Web site or web site) is a collection of Web pages, images, videos and other digital assets that is hosted on one or several Web server(s), usually accessible via the Internet, cell phone or a LAN. A Web page is a document, typically written in HTML... A holding company is a company that owns part, all, or a majority of other companies outstanding stock. ... Automakers are companies that produce automobiles. ... Proton cars are manufactured by Perusahaan Otomobil Nasional Sdn Bhd (Proton), based in Malaysia. ... The Malay language (; Jawi script: â€Ž), is an Austronesian language spoken by the Malay people who reside in the Malay Peninsula, southern Thailand, the Philippines, Singapore, central eastern Sumatra, the Riau islands, parts of the coast of Borneo, Cocos and Christmas Islands in Australia, and even in the Netherlands[1]. It... It has been suggested that this article or section be merged with Backronym and Apronym (Discuss) Acronyms and initialisms are abbreviations, such as NATO, laser, and ABC, written as the initial letter or letters of words, and pronounced on the basis of this abbreviated written form. ... Year 1983 (MCMLXXXIII) was a common year starting on Saturday (link displays the 1983 Gregorian calendar). ... The Prime Minister of Malaysia (in Malay Perdana Menteri) is the indirectly elected head of government of Malaysia. ... The Malay language has a complex system of titles and honorifics which is still extensively used in Malaysia and Brunei. ... Tun Dr. Mahathir bin Mohamad (b. ... The Bursa Malaysia or Malaysia Exchange, MYX previously known as Kuala Lumpur Stock Exchange (KLSE, Bursa Saham Kuala Lumpur in Malay) dates back to 1930 when the Singapore Stockbrokers Association was set up as a formal organisation dealing in securities in Malaya. ...

History

Based on technology and parts from Mitsubishi Motors, production of the first model, the Proton Saga began in September 1985 at its first manufacturing plant in Shah Alam, Selangor. Initially the components of the car were entirely manufactured by Mitsubishi but slowly local parts were being used as technologies were transferred and skills were gained. The 100,000th Proton Saga was produced in January 1989.^[1] Image File history File linksMetadata Protonoldlogo. ... Image File history File linksMetadata Protonoldlogo. ... Mitsubishi Motors Corporation ) is the fifth largest automaker in Japan and the thirteenth largest in the world by unit sales. ... The Proton Saga is the first car produced by Malaysian auto manufacturer Proton, based on the 1983 Mitsubishi Lancer Fiore. ... Motto: Indah Bestari (English: Beautiful,Brilliant) Location in Malaysia Country Malaysia State Selangor Establishment November 1978 Government - Mayor Dato Ramlan Bin Othman Area - City 290. ... State motto: Dipelihara Allah State anthem: Duli Yang Maha Mulia Capital Shah Alam Royal capital Klang Ruling party Barisan Nasional - Sultan Sultan Sharafuddin - Menteri Besar Dr Mohd Khir Toyo History - Federated into FMS 1895 - Japanese occupation 1942 - Accession into Federation of Malaya 1948 Area - Total 7,956 kmÂ² Population - 2005...

Until the end of the 1990s, the car's logo featured the crest from Malaysia's coat of arms, featuring a crescent and a fourteen-pointed star. The new Proton logo features a stylized tiger head. A modern coat of arms is derived from the medi val practice of painting designs onto the shield and outer clothing of knights to enable them to be identified in battle, and later in tournaments. ... For other uses, see Tiger (disambiguation). ...

In 1993, a model called Proton Wira was introduced based on the Mitsubishi Lancer/Colt. More than 220,000 units were sold between 1996 and 1998.^[2] Proton Perdana, based on the Mitsubishi Galant/Eterna, was first produced in 1995, intended for higher end market. Image File history File linksMetadata Download high-resolution version (1142x438, 416 KB)Proton Wira/Persona 5-door I, the creator of this work, hereby grant the permission to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1. ... Image File history File linksMetadata Download high-resolution version (1142x438, 416 KB)Proton Wira/Persona 5-door I, the creator of this work, hereby grant the permission to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1. ... The Proton Wira is a model of car manufactured by Malaysian national carmaker Proton Berhad. ... The Mitsubishi Lancer is a compact car built by Mitsubishi Motors. ... The Proton Perdana is a mid-size car produced by Proton. ... The Mitsubishi Galant is an automobile manufactured by Mitsubishi Motors since 1969. ...

By 2002 Proton held a market share of over 60 per cent in Malaysia, which was reduced to barely 30 percent by 2005 and is expected to reduce further in 2008 when AFTA mandates reduce import tariffs to a maximum of 5%. Template:ASIAN table ASIAN Free Trade Area (AFTA) is an agreement by the Association of Southeast Asian Nations, of local manufacturing in all ASEAN countries. ...

Proton Waja (Proton Impian in UK) is the first car model designed internally by Proton. It was launched in early 2001 The Proton Waja is a saloon car designed in-house by Malaysian automotive company, Proton, first released in August 2000. ... Proton The Proton (Perusahaan Otomobil Nasional Sdn Bhd) company, Malaysia, produced the following car models. ...

With the acquisition of Lotus technologies in 1996 from ACBN Holdings (a company owned by the same person who owned Bugatti), Proton has gained an additional source of engineering and automotive expertise. This led to the production of Proton Gen-2 which was code name Wira Replacement Model (WRM) before the launch. The Gen-2 is the first of cars to be manufactured and assembled at the new manufacturing plant in Tanjung Malim, Perak which is part of Proton City development project. The plant was opened in 2004. On June 8, 2005 Proton introduced the second model to be manufactured in Tanjung Malim, the 1,200 cc 5-door supermini, the Proton Savvy. Both the Gen-2 and Savvy, were models that MG Rover was looking to rebadge when the British firm entered into collaboration talks with Proton. However these joint-venture talks were unsuccessful and MG Rover subsequently collapsed. Image File history File links Proton_Word_Logo. ... Image File history File links Proton_Word_Logo. ... Lotus Logo with monogram of its founder, Anthony Colin Bruce Chapman Lotus Cars is a British manufacturer of sports and racing cars based at Hethel, Norfolk, England. ... Bugatti is one of the fastest marques of automobile and one of the most exclusive car producers of all time. ... The Proton GEN-2 is a car made by Proton launched in the third quarter of 2004. ... Tanjung Malim is a small town in southern Perak bordering with Selangor state. ... State anthem: Allah Lanjutkan Usia Sultan Capital Ipoh Royal capital Kuala Kangsar Ruling party Barisan Nasional - Sultan Sultan Azlan Shah - Menteri Besar Tajol Rosli Mohd Ghazali History - Pangkor treaty 1874 - Federated into FMS 1895 - Japanese occupation 1942 - Accession into Federation of Malaya 1948 Area - Total 21,006 kmÂ² Population - 2005... Proton City tagged as “City of the Future”, is a new township with industrial, commercial and residential activities spread over 4,000 acres. ... is the 159th day of the year (160th in leap years) in the Gregorian calendar. ... The Proton Savvy is a supermini with radical clamshell bonnet design for efficient air scooping produced by Malaysian car manufacturer Proton. ... MG Rover are the largest independent manufacturer of cars in the British motor industry. ... MG Rover are the largest independent manufacturer of cars in the British motor industry. ...

Exports

Proton exports cars to the United Kingdom, South Africa, and Australia and the company is aggressively marketing its cars in several other countries including the Middle East. Besides that, Proton cars has also been exporting a small volume of cars to Brunei, Indonesia, Nepal, Sri Lanka, Pakistan, Bangladesh, Taiwan , Cyprus and Mauritius. 14,706 Proton cars were exported in 2006.[1] A map showing countries commonly considered to be part of the Middle East The Middle East is a region comprising the lands around the southern and eastern parts of the Mediterranean Sea, a territory that extends from the eastern Mediterranean Sea to the Persian Gulf. ...

Recently Proton returned to Guangdong, China, where it did business in the past but withdrew after having poor sales record. In July 2007, Proton signed an agreement with Youngman Automobile Group Ltd. Co., paving the way for the national carmaker to offer its products and services in China. Under the agreements, Youngman will import 30,000 Gen.2 CBU (completely built-up) units and resell them under its own EuropeStar brand and eventually develop a new range of Made-in-China cars with the engineering services provided through Proton's Lotus.[2] Guangdong, often spelt as Kwangtung, is a province on the south coast of the Peoples Republic of China. ...

Proton began its exports from Malaysia to other right hand drive markets like New Zealand in the late 1980s, but its success was mostly limited to the United Kingdom where it entered the market in 1989. They advertised there with the slogan Japanese Technology, Malaysian Style, Proton cars proved popular among budget-oriented motorists, and like Japanese and South Korean models before them, led to the demise of Eastern-bloc manufacturers such as Lada and Zastava. By the 1990s, Proton had withdrawn from the New Zealand market after offering only the Saga four-door and Persona five-door models. The Persona and Natura models were sold in Chile briefly during the late nineties by a local Nissan importer, but few were sold and the venture ended after two years.^{[citation needed]} This article concerns rules of the road regarding land vehicles; for sea-going vehicles, see International Regulations for Preventing Collisions at Sea. ... For the history of Korea, see Korea. ... Lada logo Lada is the trademark of AvtoVAZ, a Russian car manufacturer located in the city of Togliatti (Tol`yatti). ... It has been suggested that this article or section be merged with Zastava Auto. ... Nissan Motor Co. ...

Proton also exports cars to Singapore and Australia, and now produces models in left-hand drive, for export to continental Europe. An entry into the US market was considered by Malcolm Bricklin following Hyundai's successful launch in the mid 1980s. However, exports to the US never materialized, as the cars required hundreds of changes to meet American safety standards in order to secure coverage from auto insurers and satisfy legislative requirements. Proton export models still do not comply to all environmental standards such as emission limits. Motto: (Out Of Many, One) (traditional) In God We Trust (1956 to date) Anthem: The Star-Spangled Banner Capital Washington D.C. Largest city New York City None at federal level (English de facto) Government Federal constitutional republic - President George Walker Bush (R) - Vice President Dick Cheney (R) Independence from... Malcolm Bricklin Malcolm Bricklin born March 9, 1939 ) in Philadelphia, Pennsylvania) is an automotive entrepreneur. ... The Hyundai Motor Company (hangul:í˜„ëŒ€ìžë™ì°¨; hanja:ç¾ä»£è‡ªå‹•è»Š), a division of the Hyundai Kia Automotive Group, is South Koreas largest and the worlds Sixth Largest Automaker. ...

The model that Malaysia has followed with the formation of Proton may be used as a case study for rent seeking as tariffs on imported cars rose almost immediately following the formation of Proton. Also AFTA agreements on relaxing entries into the ASEAN marketspace had exemptions specifically for Proton. The Malaysian government gained a three-year exemption for Proton from 2002 to 2005 where entry tariffs had to be lowered to 5%. This was replaced by other duties resulting in no net decrease in automotive prices for importers. The phenomenon of rent-seeking was first identified in connection with monopolies by Gordon Tullock, in a paper in 1967. ... Main languages See Languages of ASEAN Secretary General Ong Keng Yong of Singapore Area - Total 4,480,000 km2 Population - Total (2004) - Density 550,000,000 122. ... ASEAN[1], pronounced // (AH-SEE-AHN) in English, or the Association of Southeast Asian Nations, is a geo-political and economic organization of 10 countries located in Southeast Asia, which was formed on August 8, 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand[2] as a display of solidarity...

In the United Kingdom, Proton cars suffer somewhat from a poor public image. They are considered deeply unfashionable with younger drivers, they are identified as being a vehicle popular with elderly people.^{[citation needed]}

Drop of sales

In 2006, Proton's sales dropped 30.4% from 166,118 in 2005 to 115,538 for the Malaysia market,[3]^[3] with a later report indicating a 55% fall of sales to 962.3 million ringgit, its lowest in at least seven years.^[4] This allowed Perodua to overtake Proton as the country's largest passenger carmaker for the first time, with a 41.6% market share, while Proton's market share fell from 40% in 2005 to 32% in 2006. In the period ending December 31, 2006, Proton has also suffered three consecutive quarterly losses. Compared to a profit of 86.5 million ringgit in 2005, the car company lost 281.5 million ringgit in 2006. Proton blamed discounts from rivals. Total losses in 2007's financial year climbed to $169 million.^[4] This article does not cite any references or sources. ...

The Employees Provident Fund (EPF) acquired an additional 830,000 shares in a transaction that spanned between January 5 and January 12, 2007.^[5] The Employees Provident Fund (Abbreviation: EPF, Malay: Kumpulan Wang Simpanan Pekerja) is a government organisation in charge of social security or retirement planning for employees in Malaysia. ... is the 5th day of the year in the Gregorian calendar. ... is the 12th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ...

Strategic Partnership with Volkswagen AG

In October 2004, Proton announced that an understanding has been reached with Volkswagen AG of Germany to establish a strategic partnership. Under the tie-up, the two carmakers are expected to exploit each other's strengths. Proton would gain access to Volkswagen's superior technical capabilities and technology. In return, Volkswagen may utilise Proton's spare capacity at the latter's Tanjung Malim to assemble cars for export to the South-East Asian market, where the German auto giant has a weak presence. Furthermore, the tie-up may see Volkswagen assist in distributing Proton vehicles in China while Proton does the same for Volkswagen in South-East Asia. Nonetheless, none of the parties announced detailed and concrete plans for the partnership. On January 13, 2006, Volkswagen announced that negotiation of the partnership has failed because VW's plans were different and clashes with the terms and condition that Proton offered. VW are more interested to own Proton Holding than a strategic partnership. ^[6] Despite this, Malaysian news has announced Volkswagen AG has signed an agreement to buy a 51% share in Proton on January 26, 2007. Official announcement from the two companies was expected February 8. 2007.^[7] The deal still has yet to be finalised as of June 2007. In June Datuk Seri Abdullah Ahmad Badawi has asked Proton Holdings Bhd to start talks with other carmakers on a partnership because Volkswagen AG is not interested. [4] Later on the Khazanah Malaysia Bhd, main share holder of Proton Holding said talks with Volkswagen AG still on.[5] Volkswagen AG (TYO: 7659) is a German corporation. ... A strategic partnership is an alliance between two parties (frequently one corporation that provides engineering, manufacturing or product development services, and one smaller, entrepreneurial firm or inventor) to create a specialized new product. ... By the mid 20th century humans had achieved a mastery of technology sufficient to leave the surface of the Earth for the first time and explore space. ... Tanjung Malim is a small town in southern Perak bordering with Selangor state. ... Location of Southeast Asia Southeast Asia is a subregion of Asia. ... Volkswagen AG (ISIN: DE0007664005), or VW, is an automobile manufacturer based in Wolfsburg, Germany. ... January 13 is the 13th day of the year in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 26th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 39th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... Volkswagen AG (TYO: 7659) is a German corporation. ...

Stock acquisitions

Lotus

In 1996, Proton acquired a 63.75% share in Lotus Group International Limited for 40.64 Million Pounds Sterling. A later PriceWaterhouse Coopers audit would find that the CEO, Yahaya Ahmad, had inked the agreement on October 16, 1996. The agreement was presented to the board for approval on 27 November 1996. As part of the purchase agreement (signed prior to board agreement), there were restrictions placed on Proton's ownership of Lotus. One of the restrictions was a prohibition on diluting ACBN's remaining shareholding for a period of five years. This restricted Proton in its operation of the Lotus business and required Proton to guarantee a 40 million pound loan in 2000. is the 289th day of the year (290th in leap years) in the Gregorian calendar. ... Year 1996 (MCMXCVI) was a leap year starting on Monday (link will display full 1996 Gregorian calendar). ... is the 331st day of the year (332nd in leap years) in the Gregorian calendar. ... Year 1996 (MCMXCVI) was a leap year starting on Monday (link will display full 1996 Gregorian calendar). ...

MV Agusta

In December 2004, Proton purchased a majority share in MV Agusta of Italy at 70 million Euro. MV Agusta is the manufacturer of MV Agusta, Husqvarna, and Cagiva motorcycles. A year later, Proton sold off its 57.7% share in MV Agusta to Italy's GEVI Spa for a token of 1 Euro. Due to heavy debt by MV Agusta, the selling enabled Proton to write off the losses off its book. But the buyer would assume the 107 million Euro ($174 million) in debt. In August 2007, GEVI Spa the company that bought over MV Agusta for 1 Euro sold the brand Husqvarna and its factory to BMW for a reported 93 millions euros leading to speculations by the Malaysian public of bad management of the company's board of directors. MV Agusta was a motorcycle manufacturer founded in 1945 near Milan in Cascina Costa, Italy. ... Husqvarna is a manufacturer of power lawn equipment, sewing machines and formely mopeds. ... Cagiva is an Italian motorcycle manufacturer. ... A motorcycle (or motorbike) is a two-wheeled vehicle powered by an engine. ...

Trivia

When the first Proton appeared on Malaysian roads, local wits promptly dubbed it (Proton Saga) the 'Potong Harga', meaning the 'cut-price' Proton. And for good reason. The Proton was at least 20 percent cheaper than non-national makes in the same 1.3 to 1.5 liter class. With both the price and a dash of national pride working for it, the Proton got a rapid hold on the market. By 1988 the Proton had overtaken all other makes and grabbed 73 per cent of the passenger car market.

In 1983, when the 'national car' had been planned, Malaysia was selling just over 90,000 cars a year and the market was growing annually by 20 per cent. The Proton plant was designed to turn out 80,000 units a year and could gear up to 120,000 units. But in Proton's first full year of production (1986), car sales took a severe dip to 47,000 and next year, due to the worsening economic situation, just 35,000. Only in 1988 did the market begin a recovery to 54,000 units, by now most of them Protons. Since then, the market has grown steadily to a 2005 peak of 417,000 cars. [6]

Government policy has kept the Proton cheaper than other makes by the simple strategy of taxing the competition, while giving Proton exemptions from these same taxes. Duties on packages of parts for assembly into complete cars in Malaysia is said to average about 150 per cent. Proton is exempted from most of these.[7]

It is interesting to watch what happens in January 2008 when a major ASEAN Free Trade Agreement (that Malaysia signed on to many years ago) which specifically bars discriminatory practice against goods considered "Made in ASEAN", comes into play. Cars (and CKD kits) made by the major world players (like Toyota) and considered "Made in ASEAN" (in practice, "Made in Thailand") would if taxed like a Proton, instantly become very price competitive with a Proton instead of costing 30 to 60 percent more, pre-2008.

The design of the car is over a decade old and has a dismal reputation for styling and safety. Moreover, Proton's reliability record is one of the worst of any car, according J.D. Power.

Contents

History

Exports

Drop of sales

Strategic Partnership with Volkswagen AG

Stock acquisitions

Lotus

MV Agusta

Trivia

See also

References

External links

Contents

History GA_googleFillSlot("encyclopedia_square");

Exports

Drop of sales

Strategic Partnership with Volkswagen AG

Stock acquisitions

Lotus

MV Agusta

Trivia

See also

References

External links

History