Proton News

Malaysia's state investment arm, Khazanah Nasional, which controls Proton has discontinued negotiations with VW.VW was the latest in a long line of potential venture partners that included Fiat, Peugeot and General Motors.It had wanted to buy a 51 per cent controlling stake in Proton, but the Malaysian Government baulked at losing control of the carmaker.Carsguide understands this has been a sticking point with other alliance contenders. Some auto analysts say Proton may find it hard to secure a partner in the future.But Proton Australia chief John Startari, who is in Malaysia, says the change of heart by the Government demonstrates its faith in the carmaker “to continue the work they've done in turning the company around.”“They've given new management the opportunity to continue the work they've done in turning the company around after the losses last year,” he says.“They've made significant gains so far this year.”The arrival of the new Persona sedan and models such as the BLM (for baseline model) and a people mover augur well for the future.“Proton at no time has said it won't need a partner, or it doesn't need a partner,” Startari says.“It's just saying the timing at this point is not right.”Proton Australia has sold 2035 cars this year, up 25 per cent on last year, admittedly off a low base.The arrival of the Persona and other products should lift its market share.VW started talks with Proton in 2004 with the aim of forming a strategic alliance and giving Proton better access to new technologies, platforms and better quality standards.The Malaysian Government says it has also ended talks with General Motors.Proton's domestic sales and exports are improving, which prompted the cancellation of negotiations.But the Government has not ruled out a technology alliance with another global automotive player at some stage.Proton Holdings managing director Syed Zainal says the latest development did not detract Proton from continuing its efforts to seek opportunities to enhance its product portfolio and access to markets, technology and operational efficiencies. 

  Proton Cars Australia chief John Startari, in hosing down speculation it will get all-paw traction, says it was seriously considered but dismissed on cost grounds. “It would price the car over $20,000 and that's not acceptable,” Startari says. The Jumbuck entry GLi model costs $16,990 and the upper-spec GLSi $18,990. It has been a consistent hit with rural buyers wanting a no-frills workhorse. Proton Malaysia is close to signing off on the new Jumbuck's design and will soon start development and engineering work. Carsguide understands the new Jumbuck will have an extended cab like the new VE Commodore ute, which will allow more storage room inside. However, Startari says it will remain a low-cost vehicle. An all-wheel-drive Jumbuck would have filled a niche left wide open by Subaru when production of its Brumby ute ceased in 1994. The just-axed VW and Proton technology tie-up could have given Proton access to VW's 4motion all-wheel-drive systems, making a four-paw Jumbuck more viable. Apart from the Jumbuck, Proton is looking at a range of vehicles to join its line-up, including a small sedan called the BLM (for base-line model). The BLM is expected to be launched in Malaysia next year and will arrive here in 2009; with either a 1.3-litre or 1.6-litre four-cylinder Campro engine. It's expected to cost less than $15,000, and Startari says it will be packed with equipment. The BLM promises spirited performance in 1.6-litre guise. The five-speed manual weighs 1060kg and the four-speed automatic 1080kg. In Malaysia it will replace the long-running Saga model. The 1.3-litre BLM is expected to cost about $10,000. The sedan's platform can also support a hatch and wagon, but Proton is yet to decide if additional models will be built.    

AS ONE-FIFTH of the upbeat phenomenon Hi-5, Nathan Foley is known around the world. He has sung and danced his way to worldwide acclaim with the multiple Logie and ARIA Award-winning group and children's show. The 28-year-old has been part of the successful Nine Network show, which is aired in 83 countries worldwide, for eight years. And, along with the other four members of Hi-5, he has become a cult star for under-10s. Foley, who has recently written and produced his solo album, Discovery, loves V8 engines, riding motorcycles and karting.What was your first car?I bought a 1983 Mazda RX-7 when I was 16. I started performing when I was 10, so I saved to buy a car when I got my Ls. I bought it secondhand and I still have it. It's bronze-over-brown - sounds disgusting, but it's really funky. I'm trying to sell it.What do you drive now?My main car is a 2003 Ford Explorer. I also have a 2003 Triumph motorcycle, and I've just sold a 1969 Mach 1 Mustang. In 1998 I won a Proton Satria in a singing competition and traded it in for the Mustang. I sold it because I want to renovate my house.Do you have a favourite drive, and who would you take along?I love driving down the south coast of NSW to Coolangatta with my girlfriend Melissa (not Coolangatta in Queensland). It's about a two-hour drive from Sydney.How far would you drive in an average year?Oh boy. We tour a lot and I drive both and in New Zealand. I live on the NSW central coast so I do a lot of driving back and forth to Sydney. I'd average three to four hours a day. What's that over a year? A lot of kilometres.Do you have a favourite motoring memory?I used to visit my dad on weekends at his farm in the central coast area. He bought me a $200 paddock-basher - I think it was a Corona. It was a five-speed manual, so I learned to drive a manual at a young age. I was 10 years old and had my own Dukes of Hazzard course. My mates would come over and we'd go around the paddock-bashing course.What would you buy if money were no object?I'm not a huge fan of new cars - they all look the same to me. But if I had millions of dollars to spend I would buy 50 to 100 classic cars. Get all the muscle cars from the late 1960s and early '70s.What music is playing in your car?I'm a huge Stevie Wonder fan but at the moment I'm really getting into Ben Harper -- Both Sides of the Gun. I always travel with my iPod. I have this huge transmitter that's really strong, so if I'm travelling in convoy with friends in three cars they can all pick up the frequency.How much is too much for a new car?I think car prices are going up ridiculously, especially if it's just to get you from A to B. The only way I would buy an expensive car is if it would hold its value like an investment. That's why I got the Mustang. If you spend $80,000 to $100,000 on a new car - which I haven't, that's way too much money -- in a few years they're down to $40,000. I think $450,000 is too much to pay for a car. If big businessmen have the cash to do it, then do it, but I think it's ridiculous.What should be done to make driving safer?People need to be more aware on the road. I find when I'm on my bike, people just don't look where they're driving. They don't indicate. I think everyone should do a road-rules test and be taken on a course once a year. If they're not up to scratch they should lose their licence. I really believe that. My pet peeve is people going slow in the right-hand lane on the freeway. It bugs the crap out of me.Are you sponsored by a car company?No, but I'm looking.

A new Malaysian flagship is being prepared for action in Australia next year. The Proton Persona sedan, unveiled in Kuala Lumpur, is locked into a role here next year at the top of the local range. It will slide in above the Gen.2 hatchback, which provides the Persona's mechanical and body package. But there are more improvements in the newcomer, which is expected to create about 20 per cent more sales for the company and improve customer satisfaction. “We have addressed concerns of customers in Australia,” Proton Cars Australia managing director John Startari says. “It's a fantastic car. It's very encouraging.” The changes include a new dashboard with a glovebox, something missing from the Gen.2, and better seats with more headroom. “Basically, it has an all-new interior. There is a new console, cupholders in the rear and the electric-window switches have been moved. It's a big change from the Gen.2,” Startari says. Proton has been overwhelmed in Malaysia, with more than 10,000 advance orders, and this has pushed the start of local sales back to next year, he says. “We will launch the Persona at the Melbourne Motor Show in February,” Startari says. This is not the first time Proton has had a Persona in Australia, the car was also sold as the Wira, but it is a big change in direction. The previous model was over-priced and underdone, but Proton knows it must do better this time. That means two models, with a starting price that should be in the low-to-mid $20,000 range. Standard equipment is expected to include twin airbags, anti-skid brakes, airconditioning, electric windows and parking radar. “The price will be somewhere around the present Gen.2,” Startari says. “The Persona will give us an extra 600 cars a year. It will be our flagship and help us improve on this year's target of 3200 sales,” he says. That should easily better the result of the Gen.2, which has struggled here after early quality problems.  

Audi was 123% more likely to be stolen than the average vehicle, followed by BMW (117%).However, the other German luxury brand, Mercedes-Benz was up only 19% on the average.The 2006 Suncorp statistics do not provide actual numbers, type or age of vehicle, only proportions stolen.Vehicles below the average were Volkswagen, Ford, Mitsubishi, Mazda, Kia, Peugeot, Daewoo, Nissan and the least likely to be stolen was Daihatsu.The research showed that the more expensive the vehicle, the more likely it was to be stolen.The most stolen vehicles were those in the $60,000 to $100,000 bracket, despite the fact that these have better theft protection.Suncorp also released claims information on crash frequency which shatters the theory that the better the car, the better the driver.Claims where the driver was at fault for the accident were 10 per cent more likely for cars that were worth $60,000- $100,000. Alfa drivers were 58% more likely to make an at-fault claim than the average driver.Suncorp motor insurance general manager Daniel Fogarty said the results could suggest that drivers of prestige motor vehicles may feel safer in their cars, which could lead to over-confident attitudes, resulting in more accidents occurring.“On the other hand, drivers of new prestige vehicles may feel slightly more nervous on the roads than if they were driving a mid-range car, which might potentially cause more accidents, as the financial implications of accidents are higher,” he said.One of the most common types of claims that Queensland drivers made was for a single-vehicle accident.Holden Special Vehicles drivers were 50% more likely to make a single-car accident claim, followed by Audi (49%) and Chrysler (44%).Least likely to make such a claim were Daihatsu drivers at 30% less than the average.The statistics also show that if you lend your new car to a friend or relative there is a 12% chance that they will scratch or damage it, but a 93% chance they will also own up to it. Frequency of thefts1. Audi 123%2. BMW 117%3. Jaguar 100%4. Alfa Romeo 89%5. Saab 74%Frequency of at-fault accidents1. Alfa Romeo 58%2. Proton 19%3. Mazda 13%Frequency of not at-fault accidents1. Audi 102%2. Alfa Romeo 94%3. Proton 75%Frequency of single-vehicle accidents1. HSV 50%2. Audi 49%3. Chrysler 44% Source: Suncorp claims statistics for 2006 

The show, which opens on Friday, will feature the Australian debut of several models at the affordable end of the car world.Leading the way, Holden is expected to take the "top secret" covers off the Epica, its next lower-priced, mid-size sedan.The Korean-made Epica — tipped by dealers to start at $24,990, with the choice of two six-cylinder engines — replaces the European-made Vectra.The Epica will fit into the Holden line-up alongside the Barina and Viva, budget-priced Korean replacements for models previously designed and built in Europe.Malaysian brand Proton will launch its second-generation Satria Neo three-door hatchback in the city that has been its strongest Australian market.The Satria Neo, with a 1.6 litre engine, looks chunkier than its predecessor and will be $18,990 drive away.Honda will unveil a fresh-design CR-V all-wheel-drive wagon, with prices expected to start near $30,000.Nissan's compact Tiida model, given a $2000 price cut to start at $17,990, is expected to attract budget-minded shoppers. Like the Honda CR-V, production of the Tiida has been moved from Japan to Thailand.Continuing the price-down trend, Suzuki's new face will be the SX4, a 2.0 litre all-wheel-drive wagon that officially goes on sale on Thursday, priced from $24,990. It had been expected to be $26,990.French brand Peugeot will use the show for the Queensland unveiling of its new small car, the near-$20,000 207, about to go on sale with 1.4 litre, 1.6 litre and 1.6 litre turbo petrol engines, and a 1.6 litre diesel.The show, at the Brisbane Convention and Exhibition Centre, South Bank, runs from Friday to February 11. It is open noon-10pm on weekdays, 10am-10pm on Saturdays and 10am- 6pm on Sundays. Admission is $16 for adults, $10 for children, and $42 for a family (two adults, three children).

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."