Proton Satria 2006 News

The Malaysian car maker is now export—focussed and with a revitalised pricing strategy, an all—new model, as well as entry—level price point variants of its existing range, in the Australian market. The company has brought forward the introduction of what it claims will be Australia's lowest priced sedan, which will now arrive in October this year instead of early next year. With a sub—$13,000 pricetag Proton Cars Australia managing director John Startari says the car's compliance process was completed early and he saw no point in delaying new product. "We're offering a four—door where many are three—door — you'd argue that the buyer, if they can get more for less, might switch to a sedan if the price is right." "Initially we'll get the manual with the 1.6, early next year we'll have other variants in automatic and manual, with the 1.3—litre engine — it's based on the Campro 1.6 engine." Startari says the new—entry level models of Satria Neo, Gen2 and Persona would be introduced here just before the end of the year, a big part of the sales increase strategy. "We're looking to triple our sales over a two—year period, that's on the back of a substantial increase in marketing, the introduction of a more price—competitive range — we see the volume growth at the lower end," he says. Brand awareness and its dealer network have been two of the brand's main issues - something Startari aims to address within the new plan. "Our dealer network has undergone substantial change, we've parted company with 17 of our 41 dealers by mutual consent, we went to them with our plan, with infrastructure that was required, which required some investment on their part, those that didn't want to do it agreed to cease trading." "We've recruited seven new dealers in the last two months, which we have to fast—track now because the car is coming quicker — we need to be at 50 dealers by the end of 2011 nationally. "We've parted company with nearly half our network, we wouldn't have done that ... things needed to change and in the last 18 months there's been some dramatic changes, I'm not saying it's the last throw of the dice but things needed to change." Startari says the brand erred with its buyer—direct strategy and had needed to raise its profile with consumers. "We're dealing with an awareness problem, we should be selling 4000—5000 a year, we've researched this and found out why - there's nothing out of the ordinary — at the end of the day it comes down to awareness … if they don't know us, they shy away because there are other more visible brands out there," he says. "Proton has already recruited a number of new dealers and they have told us that they had considered taking on other low cost brands but did not want to take the risk with brands that do not have an established record in Australia." With a number of Chinese brands coming into the market, as well as existing Japanese and Korean brands increasing small—car numbers, Proton sees its strength in its 15—year presence in the market. Startari says the Australian arm's four—year business plan has factory support. "The factory knows it will be tough in the early stages, the market has changed but the foundations of our business plan is still sound and we believe we can achieve it," he says. "Clearly there will be new low cost brands entering the market in the coming months, however Proton's strength is that it has been in this market for close to 15 years and is a factory owned operation with the full backing of our parent company in Malaysia. "Product, pricing and marketing support have received major boosts from our parent company to ensure that we have the tools to expand our market share in this country," he says. "The next 12 months will tell if we've got it right - or if we've got it horribly wrong.”

The experience will go swimmingly for the brand, or it will backfire and become an embarrassing mistake. So when V8 Supercar driver, Mark Skaife, got behind the wheel of a Proton Satria recently for his stint as a celebrity driver on the local version of the UK hit Top Gear, Proton Australia company executives were justifiably nervous for their car. However managing director, John Startari, says the whole experience was a pleasant surprise. "When you get people like Mark Skaife commenting on how good our car is, that's been beneficial," he says. "We are happy to sign on for the next series." Apart from Skaife, Startari appreciates the feedback from the other celebrity drivers who have completed the track drive. The Top Gear Satria has sailed through its various track challenges without missing a beat, apart from a few minor scrapes. "Again, that's good news," Startari says. Startari says that he was initially sceptical about supplying a 1.6-litre Satria for the show, based on the experience of the UK show, which used a Suzuki Liana and in recent episodes a Chevrolet Lacetti, sold here as the Holden Viva. "I was a bit concerned about how the car would be portrayed, based on how the UK show treats its car," he says. "But the producers reassured me that it would be fairly treated and used appropriately." But the positive exposure has been a good thing and is helping Startari build the case for a GTi version of the Satria. With the aide of Top Gear, Startari is keen to reignite interest in a Satria GTi and get them into showrooms next year. "We also want to leverage our Lotus relationship after we build some market share," Startari says. But Startari says the company needs the right engine, whether it be a four cylinder turbocharged unit or high-performance naturally aspirated engine. The company showed off a tricked up Satria "Desire" concept at the Sydney Motor Show two years ago but until recently progress on the GTi had stalled. The Top Gear exposure may have been just the ticket to kickstart discussions with Malaysia and get the car back on track.  

A move towards large cars is part of Proton's growth plan. After years of concentrating on small vehicles, the Malaysian brand will step up to bigger cars with a people mover and possibly a compact off-roader.Recently speaking at the launch of the new Persona small sedan, Proton Australia managing director John Startari revealed the company's plans for the next two years.Several updated models are coming our way next year, including the new seven-seat MPV.The people mover is a big step for Proton, which has had only compact sedans and hatches.The van will be officially unveiled later this year in Malaysia, but Startari would not reveal details of the new model.He says the company is also considering a move into the competitive compact off-roader market soon, but the deal hinges on the company's expansion.“Proton is starting to seek partners in Russia. That, I think, will help Australia immensely,” Startari says.Startari did confirm that an upgraded version of the GEN.2 hatch is due at the end of this year and will begin a busy period for the brand.The face lifted GEN.2 is expected to use the company's new CAMPRO CPS engine that lifts power from 82kW to 93kW.The Saga and Satria R3 will be introduced early next year. The Saga will replace the Savvy light sedan and be available with either a 1.3-litre or 1.6-litre four-cylinder petrol engine. The Satria R3 is a performance version of the current hatch.Though the company hasn't said what will power the R3, Startari did say Proton is developing forced-induction engines.The Jumbuck light ute will also receive an update next year and is the “prime target” for Proton's eventual move into diesel powerplants.Since negotiations with Volkswagen for a joint-venture agreement to develop diesel engines broke down, Proton has been looking for a new partner.The Proton could produce a range of hybrid vehicles based on the Lotus-developed hybrid prototype. Lotus built the GEN.2 based EVE hybrid last year, but so far there has been no confirmation it will go into production. 

IT has been a long time coming but Proton is set to produce a worthy successor to its Satria GTi. The Malaysian car maker will show off the GTi descendant when it unveils the R3 Satria at the Melbourne Motor Show later this month.The hot hatch version of the Satria is destined for an appearance on local roads inside the next 12 months.While the company is not prepared to divulge any details, the high-performance Satria was developed by the company's special vehicles and motor sport arm R3 - Race, Rally and Research - under the eye of former Lotus engineer and race driver Tengku Djan Ley.“We have very much focused on the Lotus philosophy of performance through light weight, utilising intelligent powerplant solutions while minimising weight and enhancing Satria's already impressive handling,” Mr Ley says. Expect the R3 Satria to have under body upgrades to match the exterior tweaks, with the R3 engineers targeting a “significant” power increase over the standard Proton Satria.The Malaysian hot hatch was thought to be a chance of getting a small-capacity turbocharged powerplant through one of the joint ventures mooted with Peugeot or Volkswagen. But given the lack of progress on that front, Proton looks like it will be keeping the powerplant in house, but forced induction is likely, as is a power figure above 120kW.The R3 Satria will share Proton's stand at the Melbourne show with the company's new Persona sedan, which goes on sale in April.The new Persona, based on the Gen2 Hatch platform, is powered by Proton's 1.6-litre engine with 82kW and 120Nm, using either a five-speed manual or four-speed automatic transmission.Proton Cars Australia managing director John Startari says the presence of the R3 Satria on the Proton stand at Melbourne will be a huge drawcard.“The question we get asked all the time is when will the next Satria GTi be here,” Mr Startari says. “The first-generation GTi carved a real niche for itself and it is a bit of a cult car." 

Last week government ministers said they were in talks with Volkswagon and French rival Peugeot-Citroen about possible acquisition of the Malaysian government’s 42.7 per cent stake.Peugeot-Citroen last night bowed out of talks and said the company had no plans to buy any part of Proton.Volkswagon is also no longer believed to be interested after the Malaysian government refused to allow the German car maker to have management control.Proton has sold 1628 cars in Australia this year, comprising the light cars Satira and Savvy, plus small cars Persona and Waja.Investment companies including DRB Hicom and the unlisted Naza Group are believed to have expressed interest in the Malaysian Government’s share."We submitted a letter of interest to the Ministry of Finance about two months ago and are awaiting word from them," Naza Group chief executive Nasimuddin Amin was quoted as saying in the Star newspaper.Naza assembles cars in a venture with South Korea's Kia Motors Corp., while DRB Hicom has alliances with Isuzu Motors Ltd., General Motors Corp., Honda Motor Co. and is controlled by politically well-connected businessman Syed Mokhtar Albukhary.But Malaysian ministers are understood to be seeking foreign investment for Proton.Proton, established in the 1980s, is an icon of Malaysia's rapid industrialisation.Its fortunes in Southeast Asia's biggest car market have plummeted from about 60 percent three years ago to just 40 percent this year due to improving sales from second national manufacturer Perodua and cheaper foreign models.ASEAN's impending decision to liberalise decades-old protectionist policies in its auto sector also could hurt Proton's bottom line, analysts say.European automakers are attracted to Proton because it gives them a chance to break into the Southeast Asian auto market, historically dominated by their Japanese rivals.Proton has two plants in Malaysia, with a total capacity of 380,000 cars per year that can be raised to 1.2 million units per year if there is sufficient demand. The plants are currently using only half their capacity.-With wires

Industry figures released this week show the real boom in the market has been in four-cylinder cars valued at less than $25,000.Known as the light car segment, sales in the division are up 22.7 per cent for the year to date on last year, while the large car segment is down the same figure. Last month light cars were up by 31.4 per cent on August last year.Federal Chamber of Automotive Industries chief executive Peter Sturrock says this trend has increased over the past couple of years, with a recent acceleration put down to high petrol prices."Well, quite simply because they are more fuel efficient, small and less expensive to purchase in the first place and they're less expensive to run," Sturrock says.A total of 10,806 light cars were sold last month and 77,650 sold this year, which is 14,346 more than last year. Leading the line-up is the Toyota Yaris, with a starting price of $14,990, which recorded 2673 sales in August, taking the total to 18,064 for the year to date.Added to this figure are the remaining 304 Echos that Toyota has sold this year, before the nameplate was changed to be consistent with the Yaris badging used in Europe.Hyundai's small Getz, named Australia's Best Small Car for 2005 by Australia's auto clubs, has also achieved an increase in sales, with 1738 models sold last month, and 13,863 for the year, an 18.4 per cent improvement over the same period last year.Getz prices start at $13,990 and stretch to $18,380. The cheapest car on the market, the Holden Barina, starting at $13,490, has the third highest sales for the segment, with 1091 sales in August and 9567 for the year to date.The Barina is followed by the Suzuki Swift, Honda Jazz and Kia Rio, all recording between 5500 and 6800 sales each for the year-to-date and just under 100 sales in August.Sturrock says while fuel prices are contributing to a shift to these cars, good value at a low price is also converting buyers."The small cars now are very well equipped," he says. "Some years ago they were the basic models, but now they're well equipped with safety and anti-theft, occupant protection, airbags and ABS, and they often have Electronic Stability Control."Features in this segment on cars such as the Yaris and Getz include front airbags, an MP3 compatible CD system, airconditioning, power windows, central locking and ABS. Some even come with Electronic Brakeforce Distribution and anti-skid technology.Holden's Barina offers airconditioning as standard, a feature that has to be bought as an option in the $34,990 base model VE Commodore Omega. The Hyundai Getz also offers a five-year/130,000km warranty.Toyota spokesman, Mike Breen, says this segment also offers a good alternative to second-hand cars."With the options that you can get on a brand new car, plus the new car warranty, it's quite appealing, especially to younger people," he says. And it seems a wide variety of buyers are purchasing these light cars, from students through to families and retirees.Hyundai spokesman Richard Power says its small cars, the Getz and Accent, are finding a market among a variety of drivers."We get quite a few young people buying it as their first new car and there's loyalty from senior motorists, who don't need a big car any more and are very attracted by the long warranty," he says. Overall, the car market has dropped by 3.4per cent on last year, with 642,383 vehicles sold, a decrease of 22,513 vehicles. August was also down from 2005 by 4516 vehicles.In the small car segment, sales are up 3 per cent year-to-date, with the Toyota Corolla the segment leader with 4147 sales in August and 31,705 Corollas sold this year. But small car sales also experienced a slight drop last month, down 1.3 per cent or 244 vehicles.Sturrock says that although the large car segment is down by 26,461 vehicles, it is still an important part of the market."It has reduced over time from what it was to where it is today," he says. "But it's still about 25 per cent of the passenger car market. You see very strong interest in the new Holden Commodore and the new Toyota Camry, there's been an excellent reaction."WHAT'S SELLINGToyota Yaris 18,368Hyundai Getz 13,863Holden Barina 9567Suzuki Swift 6703Honda Jazz 5936Kia Rio 5579Ford Fiesta 4407Mazda2 3934Hyundai Accent 3593Mitsubishi Colt 1516VW Polo 1337Peugoet 206 1071Citroen C3 486Proton Savvy 357smart fortwo 326Renault Clio 173Citroen C2 139smart forfour 132Fiat Punto 113Daihatsu Sirion 40Proton Satria 9Suzuki Ignis 1*Source: VFacts (light car sales 2006 to end August)Note: Yaris sales includes 304 Echo salesTHE CHEAPIESHolden Barina from $13,490Hyundai Getz from $13,990Proton Savvy from $13,990Toyota Yaris from $14,990Hyundai Accent from $15,990Mitsubishi Colt from $15,990Suzuki Swift from $15,990Ford Fiesta from $15,990Honda Jazz from $15,990Kia Rio from $15,990Mazda2 from $16,335Peugeot 206 from $16,990VW Polo from $16,990

They show the Satria Neo, a compact hatch that will be in Australia in November with a sub-$20,000 price tag.The original Satria was a hero car for the Malaysian company and won plenty of friends as a GTi sporty in Australia.The style of the newcomer is very similar, which is why Proton has kept the name, but it has a funkier edge and the company is promising much better quality.It comes on the back of the breakthrough Gen.2 five-door hatch and the baby Savvy, which is just starting to arrive in local showrooms.Proton has only revealed bare details on the Satria Neo, which is powered by its in-house Campro four-cylinder engine and has suspension developed by Lotus, the British sports car and engineering company which it owns.

1. What is the background to Proton Cars? "The company was started by the Malaysian Prime Minister, Dr Mahathir Mohamad, in 1986 as part of the country's industrialization plan. "These days the shift is changing from affordable Malaysian motoring to a global plan. The company has nine models and produces 190,000 cars a year, and is also the owner of Lotus in Britain." 2. What makes a Proton different? "It's exceptional, class leading ride and handling. And value for money. So it's a combination of those two things." 3. How big is Proton in Australia? "We're only a small player, operating below the radar, however our five-year plan will establish us as a niche player competing with mostly European brands. "We currently only sell 2100 cars a year but we plan to lift that to 12,000 by 2010. This year we are aiming for 3990." 4. How does such a small operator get noticed in such a huge business? "The key is to spend our limited marketing budget in the key target areas for our vehicles. We're not trying to be all things to all people." 5. What about your current model lineup? "It is limited but expanding. We currently compete in two segments, however we plan to capitalise on the growing small and light segments. "Our models are the Jumbuck ute, which is totally unique in Australia and selling around 1200 a year, only limited by supply from Malaysia. We also have the Gen.2, which is Proton's first total in-house project and is manufactured in an all-new factory north of Kuala Lumpur. "We are now also introducing the Savvy baby car and will have a replacement for the Satria in the third quarter of this year. The Savvy is a five-door hatch, best suited to city use, and it's unique selling point is the ride and handling with exceptional fuel economy. The economy is 5.7 litres/100 kilometres, combined. We also think it looks pretty good." 6. Proton has been linked to both Mitsubishi and Volkswagen at times, what is the current situation? "Proton has just signed a Memorandum of Understanding with Mitsubishi to share technical expertise and platforms for future model development. In return, Proton will supply a Malaysian vendor base and manufacturing facilities within the Asean group of nations for Mitsubishi. "The Volkswagen deal has changed slightly and will now only involve technical and training assistance, and in return Proton will assist VW with Malaysian distribution and a dealer network. Terms could not be agreed on the finer details of the original plan, which was platform sharing and joint manufacturing with Volkswagen taking a majority stake in the company. "The new Mitsubishi deal takes the company full circle as Proton started its life as a re-assembler of Mitsubishi vehicles."