Uncle's New Car

My daddy's elder brother in Johor Baru just bought a new 2-litre SUV called Toyota Innova for RM107,900. He finally got rid of his Proton Waja for a mere RM34,000, after having paid some RM73,000 nearly four years ago.

Uncle was a bit miffed with the low price he managed to get for his Waja, which is produced by Malaysia's national carmaker Proton.

Car prices in the resale market have definitely tumbled in the country due to the flood of cheap imports from China and elsewhere. Even Proton, which was long shielded by high import duties for the past two decades as part of the country's industrialisation policy, is struggling to survive.

Please see article in Malaysia's Business Times

Proton posts RM59m loss in Q1 on lower sales
August 30 200

PROTON Holdings Bhd posted a net loss of RM58.65 million in the first quarter to June, on RM1.42 billion revenue.

The national carmaker had posted a loss of RM12.35 million on RM2.05 billion revenue in the corresponding first quarter of 2005.The firm attributed the loss to a decline in total car sales and the lack of a fresh line-up of car models at Proton, as it transitions to several new models starting in 2007.

Proton managing director Syed Zainal Abidin Syed Mohamed Tahir said 32,200 cars were sold in the first quarter compared with 44,367 units previously.

He said the drop in car purchases was proportionate to industry trends, where sales across the board declined by 5 per cent in the first half of the year against a year earlier.

"While overall industry sales have dipped, Proton has been affected mainly by the lack of new car models. The bulk of our models have been in the market for several years now while the market is seeking something more fresh and exciting," he said in a statement yesterday.

Syed Zainal said Proton's sales were further affected by loan terms, interest rates and lower used car values which required a higher cash top up to switch to a new car.