Wednesday, April 15, 2009

Proton - Paying a price for its arrogance?

In Malaysia, Proton and Perodua produce the cheapest cars.  For simplicity sake, I shall omit the other "national" cars.

Compared to other makes like Toyota, Nissan, Honda etc., is Proton really competitive in their pricing? 

Would Proton be able to sell their cars if the high tariffs on non-national cars are removed?

I don't think so.  In fact, I think Proton is a very high cost producer of substandard quality cars.  Unfortunately for Proton, their problem does not stop there.  Arrogance seems to be another aspect they have excelled in.  

Now let us have a look at Perodua.  Like Proton, Perodua is also a high cost producer of cars in Malaysia.  But fortunately for Perodua, it has been able to maintain certain minimum standards and is not trapped by "arrogance attitude".

So between these two national car producers, I would vote for Perodua any time!  In fact, my first vehicle was a Perodua!  No regrets and complains for eight faithful years!

After more than 20 years, Proton is now paying a heavy price for its arrogance (customer is always WRONG!) and substandard culture.  On the other hand, Perodua has been able to avoid this pitfall and are doing reasonably well.

What do you think?

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