Proton S16 2012 News

The Malaysian brand's latest model, the Proton S16 FLX, sporting a long list of enhancements, more dynamic styling and design. The small sedan comes in two variants, GX and GXR, both available in manual and CVT transmissions, and priced from $13,990. Standard safety features across the entire range include Electronic Stability Control, ABS, Dual front airbags, pretensioning seatbelts and reverse sensors. Also new are fender design, hood, headlamps, grille, and front and rear bumpers and the side mirrors now incorporate LED turn signals. Inside, the S16 FLX has new seat and door trim fabric, a radio CD/ MP3 player with AUX and USB ports, and a steering wheel with built-in audio switches. Outside, it gets foglights and alloy wheels, and the GXR adds features like a rear spoiler and leather interior. The car has a three-year, unlimited km warranty and includes 24 hours roadside assistance. Drive-away prices are $13,990 for the S16 FLX GX manual and $14,990 for the GXR. CVT auto adds $2000 in each case.  

She is just like the Emperor who goes strutting in public without clothes, despite claims of an impressive new wardrobe, in the 1800s short story by Hans Christian Anderson.  In this case, the Prime Minister is wearing nothing for the election despite the impressive claims on her 'Cash for Clunkers' scheme.How? Why? The basics of the proposed car scrap scheme look good, with a $2000 bounty on any pre-1995 gross polluter turned in for crushing in favour of a green new car.  The government forecasts up to 200,000 trade-ins over four years on cars which have to meet either a six-star rating in the Green Vehicle Guide or emit less than 220 grams/kilometre of CO2. It is talking about lots of new cars, with safety benefits on the side, as Australians convert their rusty old hulks into something new in the driveway.  But as you drill deeper into the proposal you find flaws, and then one fatal error. It all looks simple for anyone who has a pre-'95 car in the family.  You bank the bounty, take the car to a dealership, then drive away in something shiny and new. But did you know the car must have been registered and insured for two years before the trade-in deal? Or that the paperwork must match the person doing the deal?  It's a way to ensure there are no $20 wrecker's specials rolled out by bounty hunters. Did you also know the cost of a new car against the valuation on a 1995 model?  The cheapest new cars in Australia today are the Suzuki Alto and Proton S16, which both sit at around $12,000 driveaway. But the Alto is tiny and the Proton is old, so the realistic new-car choices don't start until $15,000 and a new Commodore or Falcon is more like $40,000 on-the-road. Compare those numbers with the valuations for a '95 Commodore or Falcon.  Glass's Guide says the current figure is $2400 for an EF GLi or $3000 for a VR Executive in average condition. But what about the success of overseas schemes?  Yes, 'Cash for clunkers' schemes have worked well in other countries, but most have a bounty of at least $5000 against secondhand prices which are much lower than Australia. That's definitely true in Britain and France, where basic new-car prices are also lower. So now we come to The Big One.  Anyone doing the sums on a clunker deal is probably assuming they get $2000 cash from Canberra in addition to their trade-in. So the numbers don't look too bad. But the clunker is worth zero. Nothing. Not one dollar.  It will be going straight to the scrapyard, so there is not a single dealer in Australia who will give a single dollar for the car. That means the changeover price, which is what new-car deals are really about, goes way the wrong way.  And don't forget the Government is planning a $2000 bounty on cars which have a trade-in value above that figure.  That's why Emperor Gillard is wearing no clothes. Follow Paul Gover on Twitter!

The price fight is being sparked by Proton, which has taken the lead from Suzuki as both brands - and a bunch of others - brace for the first Chinese passenger car imports later this year. Suzuki dived first into the sub-$12,000 range with an $11,790 showroom sticker for its baby Alto, as well as a drive-away deal that runs through January at $12,490. On-road costs are generally set around $1500. But Proton is now ready to go with a $10,990 price fighter.  It is a 1.3-litre version of its S16 sedan and, even though it will only have a single airbag for the driver, the Malaysian make is expecting a solid response. "We'll have the car in showrooms on June 1. We're finalising the plan at the moment," says John Startari, managing director of Proton Cars Australia.  We're still working on the specification and assessing the market situation. We need to determine which strategy we use going forward." But he confirms the $10,990 starting price - before on-road costs - and says it is a follow-up to the current 1.6-litre S16 at $11,990.  "The S16 is already a winner. We only got the car into showrooms in December and, of the 334 cars we sold last month, 228 were S16s. It's certainly had the impact we were after." Proton has taken over from Korean cars - Hyundai led the way - as Australia's price fighter and Startari makes no excuses for trying to drive the brand forward. Proton came to Australia in 1995 and, despite some successes with a GTi and its Jumbuck ute, has never made a real breakthrough onto shopping lists. "The price thing is more about establishing the brand. It's about time we established Proton as a contender and built the sort of carpark we need to allow us to expand," Startari says.  "We need a minimum of 25,000 cars in the carpark and at the moment we're around 15,000. We have a five-year plan in place to grow that. "We'll be very aggressive in the initial stages. So there has never been a better time to buy a Proton."

The Malaysian carmaker has acted early to head off the potential price threat from Chinese imports, and to try and reach critical mass in local showrooms before the Geely and Great Wall brands gain traction in 2010. The Proton price fighter in the S16, a four-door sedan with a 1.6- litre engine, and the company is aiming for around 1800 sales a year. The S16 is a major gamble for Proton, which has never gone beyond a bit player in Australia despite good looking cars including the baby Savvy. It has struggled to meet quality expectations and performance targets for local buyers. "We're doing this to establish the brand in Australia. Set the foundations for the future," says Proton boss, John Startari. "Proton has been in Australia for 14 years, but the results over the years don't represent the true potential of the brand." He believes the S16, which was originally intended as Australia's cheapest four-door sedan but now also undercuts the $12,490 Suzuki Alto hatch, shows what Proton can do when it is serious about selling. "The product is the strongest point of the car. The price has been set up intentionally to draw attention to the car, and people will be pleasantly surprised when they drive it," Startari says. The only real shortcoming is a single driver's side airbag. Otherwise the car comes with aircon, power steering, remote central locking and CD sound. There is no automatic, at least at first. Proton says it will come early 2010. Proton also boasts about 82kW of power, economy of 6.3L/100km and Lotus-tuned suspension. It has signed Miss Universe Australia, Rachel Finch, to tout for the S16. Startari is hoping the car works and says Proton has done all it can to make it a success, including an early bonus from the import duty car for automotive imports from January 1. "We're on sale from December 1 and, at this stage, we'll hold the price into the forseeable future. The exchange rate is also helping," he says. "We have already factored the five per cent duty cut into the price of the car. In the 2010 financial year we're intending to sell 1800 S16s. That will take our volume to just over 3500, then moving up to 5000 cars after that."