Geely Archives

Proton now has the largest 3S/4S network in the country

Every car company wants to sell as many vehicles as possible and each year, there is the expectation that there will be more deliveries than the year before. However, as some companies have discovered to their regret, the pursuit of more and more sales without equal attention to expanding the aftersales network – especially authorised service centres – can create problems for customers. Lack of advance planning to cope with an increased number of new vehicles requiring regular servicing will mean customers have to wait longer for an appointment.

Push to upgrade network for future
One of the first things which Proton did after it had Geely as a partner was to review its entire network and upgrade it. Though there were many dealers all over the country, not all were offering the full range of services for customers and in order to enhance the ownership experience, Proton aimed to get its network to be majority 3S/4S outlets. This meant that they would have sales, service and spare parts (3S) at one location, and those with additional space would also have extra services such as painting and body repair (4S).

The initiative was initially met with resistance as it required large investments. There were many small dealers who had just a showroom in a single shoplot and were satisfied just selling a few cars a month all the while. They didn’t understand that with additional investment to upgrade their dealership, they could grow their business further and derive extra income from aftersales services. Instead, their customers were being ‘stolen’ by dealerships which would look after their needs and probably sell them their next Proton. So these one-shoplot dealerships (referred to as ‘1S’ in the industry) could never grow as the only money they made was from the sale of the car. As those in the car business will tell you, there is much more money to be made in the aftersales side.

Proton’s CEO, Dr. Li Chunrong, pushed hard for the upgrades in spite of criticism by certain groups but he explained that it was necessary to prepare the network for growth and to ensure that customers would have a better ownership experience. There was no point in developing better models if the aftersales support was poor and people felt the brand image was not something they were proud of.

100 3S/4S outlets to date
With the opening of a new outlet in Seremban, Negeri Sembilan, recently, Proton now has 100 3S/4S outlets nationwide, which makes it the brand with the largest such network. The new 3S outlet at the Oakland Industrial Park was built with an investment of approximately RM4 million. Located near the Seremban 2 Township, it is surrounded by new malls and housing areas which already have many Proton owners and will have many more in future.

“What we have achieved is the culmination of hard work, dedication and commitment by the entire Proton family, from our vendors, dealers and talents in the company. From the beginning, we held the belief that to progress, we need sufficient outlets, good products, great technology in our cars and talent to manage the expectations of the company,” said Dr. Li.

“The results speak for themselves. Our sales have soared and we have since reclaimed the second spot since April this year. Total sales for the month ending July stand at 52,269 units compared to 35,561 in the same period last year, which equates to 47% growth in overall year-on-year sales,” he added.

Click here for other news and articles about Proton on PISTON.MY

Visit www.proton.com to locate showrooms and service centres in Malaysia

Lotus Evija Revealed! Facts & Figures + Video of the world’s most powerful series production road car

♦ The Evija (pronounced ‘E-vi-ya’) means ‘the first in existence’ or ‘the living one’. Each car will have a starting price of around £1.7 million (equivalent to about RM8.7 million in the UK). To book one, you need to pay a deposit of £250,000 (RM1.27 million).

♦ The first hypercar from Lotus and the company’s first model with an electrified powertrain. It is also the first completely new car to be launched since the 71-year old British company was acquired by the Zhejiang Geely Holding Group in June 2017.

♦ Only 130 cars will be built, beginning in 2020. The number pays tribute to the car’s project code, ‘Type 130’. Lotus road and race cars throughout the brand’s seven decades of success have been assigned a Type number, and the Evija is no exception.

♦ This is the first all-electric British hypercar and with a target power output of 2,000 ps (and maximum torque of 1,700 Nm), it lays claim to being the world’s most powerful series production road car. It has more power at each wheel than the total power of any other Lotus road car ever produced.

♦ Ultra-lightweight carbonfibre monocoque construction also makes it the world’s lightest production EV hypercar, at 1,680 kgs. This contributes to the claimed 0 to 100 km/h time of under 3 seconds and a top speed over 320 km/h.

♦ At the heart of the Evija is a 2,000 kW battery pack powering 4 electric motors. That means it’s 8 times more powerful than a Formula E race car and can generate enough electricity to boil water in more than 1,600 kettles. A fully charged battery pack is expected to last 400 kms but the range depends on driving style and conditions.

♦ Using existing charging technology – such as a 350 kW unit, which is currently the most powerful available – the Evija’s charge time will be 12 minutes to 80% and 18 mins to 100%.

♦ The Evija signals the start of a contemporary new design language for Lotus, which will evolve and reappear on future high-performance cars.

Geely opens EV research centre in Germany

The Zhejiang Geely Holding Group, or more commonly known as Geely, has announced that they have started operations on a new EV research centre based in the heart of Germany. The brand-new Geely Auto Technical Deutschland (GATD) facility is looking into employing roughly around 300 high-profile engineers and experts from around the world. (more…)

Proton X70 Amazing Trip to China – COMPLETE!

Remember the group of Proton X70 owners who set out on an adventure of a lifetime a few weeks back? Well, the Proton X70 Amazing Trip participants have completed their 13,000km drive through four countries and 13 cities where they finally reached the home of Proton’s joint venture partner, Geely! (more…)

Proton In 2018: Part 11 – Ensuring Aftersales Improves & Geely Moves Up 76 Places in Global Fortune 500 [+Video]

The Zhejiang Geely Holding Group has announced that the company has moved up a whopping 76 places in the Global Fortune 500 ranking, after posting revenues in excess of US$41.1 billion in 2017.

This is the 7th year in the row that Geely has been listed in the prestigious Global Fortune 500, and for full details you can download this: ZGH 7 Years in Fortune 500 Press Release

In other news, the inaugural PROTON After Sales Service Competition 2018 will be held from 20 July to 19 August 2018. Hundreds of after sales personnel from PROTON dealers and branches will be put to the test to prove their skills, speed and accuracy in their areas of expertise. This is part of PROTON’s talent management initiative.

Designed as a platform for all after sales personnel around the country to showcase their ability and quality of work in handling customers’ cars, the competition offers an incentive trip and cash prizes worth RM50,000 to the winners. “The PROTON After Sales Service Competition is part of PROTON’s continuous effort to enhance the skills of our technicians to serve our customers better and also to reward those who show exceptional ability.

“Winners will be rewarded with an incentive trip to Shanghai, China, where they have the opportunity to visit Geely Headquarters and Geely Research Centre. This will be an eye opener for our local technicians to explore the full breadth of capabilities at Geely from design to development of the complete vehicle,” said Abdul Rashid Musa, Chief Executive Officer of PROTON Edar.

“Exceptional after sales service is the key to retain our existing customers as well as attracting new ones. When we provide good quality services to them, we are able to increase customer loyalty and benefit from them spreading the news via word-of-mouth. Technicians or mechanics play an important role in ensuring this to happen. Throughout the Competition, our technicians will compete against each other, helping them improve their skill level. Ultimately, this assists to build the quality of our after sales services and take it to a higher level to be on par with global standards,” he added.

The pre-qualifying round for PROTON After Sales Service Competition 2018 will be held in 5 regions starting from 20 July. Top three participants at the regional level will compete in the Final at COE, Subang Jaya on 13 – 15 September.

During the regional level competition, participants will be given an Engine Overhaul task where they are required to dismantle and assemble a Proton VVT engine within three hours. They will be judged based on their speed, accuracy and troubleshooting competencies throughout the process. “With improvement in sales and quality month by month, we are confident that PROTON is on the right track to grow. We recognise that good quality products allow us to sell more cars, but great service goes a long way to retain and grow our customer base so this is what PROTON is striving to achieve,” Rashid added further.

Vote For The Name Of Proton’s First SUV & Win Prizes Worth More Than RM100,000!

First national carmaker PROTON has launched an online poll, inviting the public to vote for the name of its first SUV. The online poll will run for one month on the official PROTON Facebook page (www.facebook.com/ProtonCarsOfficial) and is open to all Malaysians with no purchase conditions attached.

“We would like to share this significant milestone for PROTON with our fellow Malaysians as the new SUV (video below) also represents a symbol of Malaysian achievement. Therefore, we will reward the public for participating as well as select five lucky poll respondents as winners to receive some exciting prizes” said PROTON VP of Sales and Marketing, Abdul Rashid Musa.

RM100,000 worth of gift vouchers will be shared among participants as a token of appreciation while the five winners will be chosen based on the best reasons given for the name they have voted. Their prize package will consist of a ‘money-can’t-buy’ experience consisting of exclusive VIP invites to the launch as well as the honour of being among the first people to test drive and experience the technology and advanced features of the SUV at PROTON’s test track in Shah Alam.

There is also the option of proposing an alternative name for the SUV. Should the alternative name be picked, one lucky winner will be rewarded with a 4D/3N tour package to Hangzhou and Shanghai for two, inclusive of a visit to the headquarters of Geely.

PROTON’s first SUV is the first model to be jointly developed with Geely. It will be the first premium C-segment SUV produced by a Malaysian automotive brand and will be equipped with features usually found on more expensive rivals including a long list of passive, active and cognitive safety systems. It is also the first of many future products that will go on to revamp the brand values of PROTON in the next few years.

The closing date for submitting the survey is 30^th April 2018 at 11.59pm and winners will be announced closer to the launch date of the SUV, which is expected to be in the 4th quarter of 2018.

What’s PROTON Doing In 2018? [+Videos]

Can you believe it? We’re already in the third month of 2018, almost into the second quarter, and thus far, our first national carmaker has been keeping rather quiet insofar as launches are concerned, so what are they up to? Well, this for starters…

Apart from that, believe it or not, there’s really not much going to happen car-launch wise until the ‘big event’ in the fourth quarter of this year, when Proton unveils its new SUV based on the Geely Boyue. Sources have speculated that buyers will have all the space, performance and kit of a Honda CR-V, but at a HR-V price. That’s pretty good I’d say. Here’s a look at the Boyue in action (dialogue in Chinese):

But February 2018 apparently was a busy month for Proton as the company concentrated on activities aimed at having a successful year ahead. Initiatives for Sales, Marketing and Quality Improvement were put in place, while testing for its first above-mentioned SUV developed together with Geely continue. Here’s some of the local media testing it in China last year (dialogue in Bahasa Malaysia):

These initiatives will carry on in March and beyond, with specific models and areas targeted for improvement, namely:

Global Horizon…
On the international scene the Chairman of Zhejiang Geely Holding Group, Li Shufu, announced he had acquired a 9.69% stake in German company Daimler thus making him the single largest shareholder of Mercedes-Benz and Daimler trucks. PROTON could gain from it via its partnership with Geely who currently owns 49.9% of the total shares of Proton.

The ongoing quality journey…
Ever since the tie-up with Geely was announced, PROTON has undergone a quality improvement programme with its partner by using an assessment system that is based on Volvo’s global scoring criteria. In December 2017, an audit was performed by Geely and showed a remarkable threefold improvement, which is testament to the effectiveness of the ongoing work between the two companies.

Further improvements are gradually being introduced and with the next audit scheduled to take place in March 2018, PROTON is confident of achieving a further improvement of its audit score. These improvements are vital as preparations get underway for the launch of PROTON’s first SUV, currently scheduled for the end of 2018.

Iriz in focus…
Despite the advent of the new MyVi and the runaway success story it has become, for February 2018, PROTON achieved sales that were equivalent to a 9.6% share of the overall Malaysian automotive market. The majority of sales was accounted for by the Saga, Persona, Exora and in particular Iriz, which “continues to attract strong interest due to their design, technology and value for money proposition” (source: Proton). Here’s our video take on the Iriz Premium 1.6:

In March 2018, PROTON’s ‘My Style, My Drive’ campaign hits sales galleries nationwide and for this month, it focuses on the Proton Iriz. Customers are invited to rediscover the award-winning compact hatchback by taking a comprehensive test drive to appreciate the new features that were introduced in the updated model in 2017. You can read our full review with videos on it here.

At the same time, PROTON staff will also engage customers to offer advice on how to best use the various smart features of the car while select showrooms are equipped with a safety corner to demonstrate the safety aspects of PROTON’s 5-star ASEAN NCAP rated hatchback. Here’s my final say on the car…

This roadshow is still on-going so head over to your nearest Proton showroom to check it out.

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Proton Clarifies Statement By Pekema

Our first national carmaker Proton has responded to a statement issued by PEKEMA recently, and here it is in its entirety, unedited, unembellished and uncut. – Piston.my

(As a refresher, this is what they were responding to, courtesy of SAYS.com)

“PROTON would like to respond to the article entitled, Pengedar Bumiputera Proton Tertekan that was published on 11 February 2018 by Utusan Malaysia. We would firstly like to thank PEKEMA and its members for highlighting issues faced by its members as it gives the Company an opportunity to address the challenges faced by its dealer network.

The search for a Foreign Strategic Partner
Addressing the article specifically, PROTON acknowledge the tough challenges it faced over the preceding years. Since 2000 a decline in market share and sales volume had affected the ability of the Company to finance its research and development activities, which led to falling behind its competitors in terms of technology and product competitiveness. It also indirectly affected investments in developing the network, staff and manufacturing abilities of the Company.

In its efforts to address the decline, PROTON tried various approaches ranging from platform sharing with other brands to developing its own engines and transmissions to reduce dependence on imported parts. While these actions brought about positive results, none were able to arrest the continuing decline in sales and market share that were apparent both in Malaysia as well as in foreign markets.

Therefore, the need for a Foreign Strategic Partner quickly became more apparent if PROTON wanted to stage a recovery to its former position at the head of the Malaysian automotive market. It would also help in our aspirations to grow the brand both locally and abroad, which is a key thrust for the future business plans of the Company.

Following an exhaustive search that had taken a considerable amount of time, Zhejiang Geely Holding Group Co. Ltd. (Geely) was identified as the most appropriate foreign strategic partner. Due to their global reach, aggressive business strategy and the ownership of other automotive brands, most notably Volvo Cars, it would allow for the sharing of technologies and quick expansion of the brand that would put PROTON back at the forefront of the automotive industry.

The steps taken to engineering a turnaround It was decided that the recovery of PROTON in Malaysia would encompass a number of areas. Among the areas involved would be an improvement of the dealership network, the introduction of a new model range over the next few years and an increase in customer satisfaction via an improved sales and service experience.

The improvements to the dealership network would be in line with the practice of other brands in Malaysia, where the majority of their dealers sell from 3S/4S outlets. Of the PROTON outlets currently in the nationwide network, about 70% are 1S facilities where the dealers only sell vehicles without offering any after sales servicing. This is a far higher representation of such dealers than other popular brands, which limits the ability of PROTON to offer a premium customer experience.

Due to the lack of 3S/4S outlets, PROTON’s Sales Satisfaction Index (SSI) and Customer Satisfaction Index (CSI) scores have suffered as compared to other automotive players. With a plan in place to increase the number of such outlets, it is expected that both SSI and CSI scores will grow along with a corresponding increase in sales.

These new outlets will go hand-in-hand with the launching of an all-new range of PROTON models that will be developed with infusion of advanced technology.

These initiatives will push PROTON further, introducing new groups of customers to the brand who may have been considering competitor products previously. Addressing statements brought up by PEKEMA Relating specifically to the statements brought up by PEKEMA, PROTON would like to address these statements in order to explain the development of its business model:

With regards to the lack of time given to dealers to upgrade their 1S outlets to 3S/4S outlets, dealers are encouraged to upgrade their outlets over a period stretching from 2018-2020. The target for 2018 is to substantially increase the number of 3S outlets located nationwide, which will enhance overall customer experience with the introduction of our new models beginning 2018. Currently the 3S/4S dealerships nationwide, is equivalent to only 30% of our total dealerships.
PROTON recognizes that a substantial sum of money needs to be spent by the dealers on this exercise. Therefore, we introduced a special scheme that offers upfront support to assist dealers in upgrading to brand new premises. Additionally, these dealers will enjoy extra margins on cars sold for up to three years.
In the past, our dealers enjoyed a 4% margin based on a monthly volume of 40 units agreed with PROTON to qualify for their sales incentives. We have now revised the scheme by lowering the threshold to encourage overall business growth for dealers. This scheme is in line with current challenges faced by dealers and PROTON will continue to monitor the situation to ensure business growth is achievable. In addition, PROTON also provides quarterly incentive scheme throughout the year, where dealers can earn extra income by exceeding their sales targets. PROTON also provides state incentive support for on-ground activities by dealers.
The industry practice in Malaysia is for automotive companies to demand cash before delivery or to provide dealers with up to 14 days of credit terms. Considering the competitive situation faced by its dealers, PROTON extends this period for up to 60 days with certain terms and conditions. This is a special effort offered by PROTON in order to help facilitate dealers to manage their cash flow as they strive to conclude sales. By doing so, dealers will have additional time to move their current stocks without worrying about their accounts being blocked.
The Payment After Registration (PAR) system is not practiced by other automotive companies in Malaysia. PROTON has decided to end the scheme in order to ease the Company’s tight financial situation. Currently, PROTON finances a total of RM650 million a year for its dealers. If we continue to practice PAR, the amount payable to PROTON by the dealers will grow resulting in a negative effect on our cash flow.
In order to promote sales to corporate fleet customers, PROTON extends special packages to interested corporate customers, associations, organizations and institutions, subject to certain terms and conditions. Dealers are encouraged to focus on retail sales as corporate fleet sales make up a very small share, which accounts for less than 5% in total Proton car sales in 2017.
With reference to the issue of unhealthy competition between dealers, we wish to reiterate that the new margin and incentive schemes referred to in item 2 above is also meant to prevent disorderly marketing amongst the dealers. PROTON is also guided by the laws and regulations of the country such as the Anti-Competition Act.
Upon the signing of the strategic partnership agreement, PROTON established a 10-year business plan focusing on key elements comprising products, operations and sales growth. Detailed studies have been carried out leading to a comprehensive product strategy for the introduction of new models over the next five years. Due to the infusion of advanced technology, expertise and capital of our partner, we are confident that PROTON is on the path towards a turnaround and sustainable growth.
The new SUV, which will be launched by end of the year, will be positioned as a technological landmark of PROTON. As it will be positioned as PROTON’s premium model, the sales and servicing experience will be carefully managed to exceed customer expectations. Therefore, PROTON’s 3S/4S outlets will manage the sales of the SUV exclusively. However, 1S outlets will still be allowed to sell the SUV via the 3S/4S outlet closest to their location. Ultimately all dealers will have the opportunity to sell new models as long as all requirements are met.

It is recognized that PROTON and its networks of dealers have come a long way. Therefore, PROTON reiterates its intention is to prosper instead of to burden the dealers. The journey is long-haul; it is a must for PROTON, dealers and business partners to first excite and serve the market the best we can.

In conclusion, PROTON hopes and aspires to grow the business with its dealers, creating confidence in the public and enhancing brand perception with renewed customer experience. Moving forward, the business model of PROTON must focus on market requirements that are sustainable in the long-term.” – Issued by Group Corporate Communications Division, PROTON

Volvo XC60 wins praise in America

Volvo’s mid-range SUV, the XC60 has been named 2018 Utility of the Year by the Detroit Free Press, Detroit’s largest daily newspaper. Built using the Scalable Product Architecture platform, the 2018 model year is new from the ground up, combining Swedish elegence and precise craftmanship. The vehicle was given the accolade because of what it brings to the table.

Like it’s bigger brother, the middle child of Volvo’s SUV family features striking good looks that is topped off by the signature ‘Thor’s hammer’ headlights. This complements the slew of safety features very well. The XC60 is able to monitor it’s blind spots and take control of the steering if it detects an impending collision.

Besides this, it’s various front and rear sensors help prevent head-on collisions and other fender benders, acting as the driver’s third eye. Then there’s also the semi-autonomous safety system that is able to steer and keep the XC60 at a constant speed provided that the road lane markings are clearly visible.

“The XC60’s value, design and advanced safety features set it apart from other utility vehicles,” Detroit Free Press auto critic Mark Phelan said. “It sets a high standard for other SUVs.”

The Volvo XC60 is offered with a number of powertrains including the award winning T8 Twin Engine plug-in hybrid at the top of the powertrain range delivering 400bhp. Expect the automaker to chalk up a number of other awards in the coming months as more publications get their hands on this sophisticated machine.

SISMA Auto launches new Volvo Showroom in Bukit Bintang

Malaysia’s newly appointed authorised dealer for Volvo Car Malaysia that is SISMA Auto has just launched the all-new showroom located at Menara Worldwide on Jalan Bukit Bintang. The brand new city centre showroom is strategically placed just a stone’s throw away from the Pavillion shopping centre.

Offering the best of what Swedish motoring has to offer, the heart of Kuala Lumpur’s premier and residential district has been ‘blessed’ with the finest Swedish luxury and Scandinavian appeal dubbed the “Volvo Retail Experience” or VRE for short.

According to Managing Director of Volvo Car Malaysia, Lennart Stegland, “VRE is designed to reflect our Scandinavian-inspired values of calm with clean lines that exude a cool and refreshing visual exterior appeal whilst the interior offers customers a warm and inviting feeling.”

In addition to the new showroom that’ll help to boost the brand’s presence in the country with their wide range of luxury vehicles, SISMA Auto Managing Director, Syed Khalid Syed Ibrahim also added “We are very proud to be associated with Volvo, a brand that is clearly on the ascent after releasing an amazing range of new models.”

He then added, “The range that include the XC90 to the new S90 T8 Twin Engine. With this new showroom, we hope to bring the Volvo experience closer to those who live or work in the city.”

To add yet another premium touch to the Volvo ownership experience, the showroom also features SISMA Auto’s Concierge Service. As one of SISMA Auto’s key signature, this service offers great ease for customers with its home or office vehicle pick-up and drop-off.

In conjunction with the new Volvo showroom launch, customers will stand a chance to win a premium all-expense paid for two to Sweden when they purchase any new Volvo from SISMA Auto.

To know more about the new SISMA Auto Volvo showroom, head on over to the ground floor of Menara Worldwide which is located at 198, Jalan Bukit Bintang, 55100, Kuala Lumpur. Operation hours are from 9am to 7pm on weekdays and 10am to 5pm on weekends.

Article by Sepp Iran