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Proton

More than a hundred parts suppliers and vendors associated with Proton Holdings Bhd are facing severe financial strain due to escalating operational costs. Despite efforts by the Proton Vendors Association (PVA) to engage with the national carmaker regarding their challenges, appeals have gone unanswered, leading to a precarious business environment for suppliers.

According to NST,  Datuk Liu Guoquan, president of the Malaysian Fujian General Chamber of Commerce, suppliers are grappling with decreased orders, resulting in financial instability. Proton’s failure to meet promised quantities of parts orders for its models, including the X50, X70, and X90, has led to a production output reduction of 30% to 50%, exacerbating the situation for suppliers.

The financial strain faced by suppliers poses a significant threat to the automotive industry chain, potentially affecting approximately 50,000 employees. Many vendors are experiencing financial losses and some are forced to cease operations altogether, raising concerns about the industry’s sustainability.

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Lawatan media ke Proton Parts Centre Sdn Bhd (PPCSB) memberikan gambaran tentang ekosistem pergudangan syarikat dan menggariskan perkembangan terkini dalam pelan penambahbaikan pergudangan rantaian bekalan alat ganti Proton untuk 2024. Terletak di Taman Perindustrian Hicom-Glenmarie, Shah Alam, Selangor, PPCSB telah menjadi pemain utama dalam perdagangan komponen kenderaan bermotor, alat ganti, dan aksesori di seluruh dunia sejak penubuhannya pada tahun 1992.

Fakta dan angka yang dibentangkan semasa lawatan memberikan gambaran mengenai pelanggan yang luas di PPCSB, yang termasuk 354 Pengedar Badan & Cat, Stokis, dan Pusat Servis Berlesen, bersama dengan 26 pengedar luar negara. Secara ketara, PPCSB telah memperluas ruang gudangnya sebanyak lebih dari 35% dalam dua tahun terakhir, mencerminkan pelaburan strategik untuk meningkatkan pegangan stok dan memastikan bekalan pasaran tepat pada masanya di semua kawasan.

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The media visit to Proton Parts Centre Sdn Bhd (PPCSB) provided insight into the company’s robust warehousing ecosystem and outlined the latest developments in Proton’s parts supply chain warehousing improvement plan for 2024. Located in the Hicom-Glenmarie Industrial Park, Shah Alam, Selangor, PPCSB has been a key player in the worldwide trading of motor vehicle components, spare parts, and accessories since its inception in 1992.

Facts and figures presented during the visit shed light on PPCSB’s extensive customer base, which includes 354 Body & Paint, Stockist, and Authorised Service Dealers, along with 26 overseas distributors. Notably, PPCSB has significantly expanded its warehouse space by over 35% in the past two years, reflecting a strategic investment to enhance stock holdings and ensure timely market supply across all regions.

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Dalam usaha Proton untuk terus memperluaskan perniagaan, jenama  automotif nasional sedang mempelbagaikan operasi dan aliran pendapatannya dengan meneroka peluang di  dalam dan di luar ekosistem automotif. Peneraju usaha ini adalah Proton Global Services (PGS), anak syarikat  milik Proton Edar, yang dalam masa yang singkat mengukuhkan dirinya sebagai penyumbang utama kepada  rangkaian perniagaan Proton. 

Ditubuhkan pada tahun 2021 dengan hanya satu outlet makanan dan minuman dan barangan cenderahati, PGS  telah meluaskan skop operasinya dengan kini merangkumi enam bidang utama, iaitu Gaya Hidup, Kejuruteraan,  Latihan, Tenaga Baharu, Logistik dan R3 Motorsports. Dipimpin oleh Ketua Pegawai Eksekutifnya, Lee Yeet  Chuan, pendapatan telah meningkat secara eksponen daripada kurang RM1 juta pada tahun 2021 miningkat  pula 19 kali ganda pada akhir tahun 2023. 

Bagi pembeli dan peminat Proton, bidang perniagaan yang paling ketara ialah bahagian Gaya Hidup dan R3  Motorsports. Yang pertama untuk menguruskan perniagaan Proton Café dan barangan Proton manakala  yang kedua menumpukan pada membangunkan varian prestasi dan menjalankan aktiviti perlumbaan Proton. 

Proton Café yang dilancarkan pada tahun 2021 menawarkan kopi premium dan makanan kepada pelanggan  dalam suasana yang santai. Setakat ini, 16 cawangan beroperasi di pengedar Proton dengan rancangan  untuk mengembangkan jejak perniagaan kepada 25 cawangan menjelang tahun 2025. Bagi barangan  cenderahati, barangan berjenama Proton sudah lama dijual, tetapi PGS telah mula pengkomersilan. Bagi  memenuhi permintaan untuk barangan berjenama Proton dan R3, kini terdapat 20 rakan kongsi barangan  Proton di seluruh negara serta kedai maya di protonmerchandise.com untuk jualan dalam talian.

Bahagian perniagaannya yang paling dikenali, R3 Motorsports meraikan ulang tahunnya yang ke-20 pada tahun  2023 dengan pelancaran Proton X50 R3 edisi Ulang Tahun Ke-20. Tahun ini mereka memberi tumpuan untuk  membangunkan kereta lumba Proton S70 R3 dengan matlamat untuk menyertai perlumbaan S1K, dan  meningkatkan jualan minyak pelincir R3 berprestasi tinggi. 

Selain meneroka peluang jualan komersil, PGS juga menjalankan projek dalam ekosistem Proton. Ini membolehkan syarikat induk menerima hasil tambahan kerana keuntungan dikongsi dengan Proton Edar.  Contoh projek sedemikian termasuk menukar lampu di casting plant Proton kepada unit penjimatan tenaga  yang lebih cekap dan membekalkan perabot serta mentauliahkan ruang pejabat baharu untuk pemindahan  jabatan ke Proton Tanjong Malim. 

Bahagian Tenaga Baharu pula memberi tumpuan kepada pengenalan tenaga yang boleh diperbaharui untuk  membantu penarafan ESG syarikat sambil menjual penyelesaian bagi penjimatan kegunaan tenaga. Inisiatif  yang dijalankan termasuk penjualan dan pemasangan sel PV solar kepada pengedar dan vendor Proton serta  bekerjasama dengan rakan kongsi untuk membina bukti konsep untuk pengecasan EV mudah alih.

As Proton continues to advance its business expansion efforts, the national automotive brand is diversifying its operations and revenue streams by exploring opportunities both within and beyond the automotive ecosystem. Leading this initiative is Proton Global Services (PGS), a wholly-owned subsidiary of Proton Edar, which has rapidly become a significant contributor to Proton’s business network.

Established in 2021 with just one F&B and merchandise outlet, PGS has significantly broadened its scope of operations to now include six key areas: Lifestyle, Engineering, Training, New Energy, Logistics, and R3 Motorsports. Under the leadership of its CEO, Lee Yeet Chuan, revenues have surged from below RM1 million in 2021 to 19 times that amount by the end of 2023.

For Proton buyers and enthusiasts, the most visible areas of PGS’s business are the Lifestyle and R3 Motorsports divisions. The Lifestyle division manages the Proton Café and sells Proton merchandise, while R3 Motorsports focuses on developing performance variants and overseeing Proton’s racing activities.

The Proton Café, launched in 2021, offers customers freshly brewed premium coffee and food items in a relaxed atmosphere. Currently, 16 outlets operate at Proton dealerships, with plans to expand to 25 outlets by 2025. Additionally, Proton branded merchandise, previously available, is now commercially marketed under PGS. Leveraging the demand for Proton and R3 branded items, there are currently 20 Proton merchandise partners nationwide, alongside a virtual shop at protonmerchandise.com for online sales.

R3 Motorsports, perhaps the most recognisable division, celebrated its 20th anniversary in 2023 with the launch of the Proton X50 R3 20th Anniversary Edition. This year, the focus is on developing a Proton S70 R3 racing car with the aim of participating in the S1K race, while also boosting sales for their high-performance R3 lubricants.

Beyond retail opportunities, PGS undertakes projects within Proton’s ecosystem, providing additional revenue streams as profits are shared with Proton Edar. Examples include upgrading lighting at Proton’s casting plant for energy efficiency and supplying furniture and commissioning office space for department transfers to Proton Tanjong Malim.

The New Energy division focuses on renewable energy introduction to improve the company’s ESG rating and retails energy-efficient solutions. Initiatives include selling and installing solar PV cells to Proton dealers and vendors and collaborating on mobile EV charging proof of concept projects.

Operasi terkini yang dilakukan oleh Jabatan Kebajikan Masyarakat untuk menangani aktiviti meminta sedekah di pasar malam Sri Jaya, Maran, Pahang, telah membongkar seorang lelaki yang menyara dirinya melalui meminta sedekah tetapi memiliki sebuah kenderaan utiliti sport (SUV).

Menurut NST, semasa operasi itu, pegawai agensi telah mengamati seorang lelaki tempatan yang memakai jubah dan memakai taqiyah, melintasi pasar malam dan meminta sumbangan dari orang yang lalu di situ. Penampilannya, bersama dengan tangannya yang kecil, pada mulanya membuat pegawai menganggap bahawa dia mungkin memerlukan bantuan sebenar disebabkan oleh kecacatan fizikal.

Walaupun cubaan oleh pegawai penguatkuasaan untuk berkomunikasi dengan lelaki itu dan memahami tujuan di sebalik memintanya, dia tetap tidak responsif. Diperhatikan bahawa dia kelihatan pekak dan bisu, menambah kepada anggapan tentang kerentanannya.

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A recent operation conducted by the Social Welfare Department to tackle begging activities in the Sri Jaya night market, Maran, Pahang, led to the exposure of a man who had been sustaining himself through begging but owned a sports utility vehicle (SUV).

According to NST, during the operation, officials from the agency observed a local man clad in a robe and wearing a taqiyah, traversing the night market and soliciting donations from passersby. His appearance, coupled with his small hands, initially led officials to believe he might be in need of genuine assistance due to a physical disability.

Despite attempts by enforcement officers to communicate with the man and ascertain the purpose behind his begging, he remained unresponsive. It was noted that he seemed to be deaf and mute, adding to the assumption of his vulnerability.

Upon closer inspection, officials discovered a substantial amount of banknotes in his possession, suspected to be the proceeds of donations received from sympathetic individuals. Despite persistent requests for identification, the man remained silent.

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Memandangkan prestasi jualan domestik pengeluar kereta nasional Proton melebihi 150,000 unit pada tahun 2023, prestasi terbaiknya sejak tahun 2012, syarikat turut menetapkan semula  jangkaan di beberapa pasaran eksport. Salah satu pasaran terawalnya, Brunei Darussalam, menunjukkan  pertumbuhan luar biasa bagi tahun lepas dengan mencatat rekod jualan baharu bagi jenama Proton. 

Setahun selepas menjual 422 unit pada tahun 2022, jualan meningkat sebanyak 87% pada tahun 2023 apabila  789 unit kenderaan Proton dijual di Brunei pada tahun 2023. Prestasi luar biasa itu melonjakkan jenama itu ke  tangga kelima keseluruhan dalam jadual jualan dan memperoleh pegangan pasaran sebanyak 5.4%, naik satu  tempat dan meningkat 2.2% berbanding tahun sebelumnya. Jumlah Volum Industri (TIV) bagi negara tersebut ditutup pada 14,640 unit untuk tahun 2023, peningkatan daripada 13,000 unit bagi tahun 2022. 

Proton X50 menduduki tempat ketiga untuk jualan SUV segmen B 

Proton X50 telah menjadi model Proton siri X terlaris sejak diperkenalkan pada Oktober 2020. Lebih 100,000 unit  telah dikeluarkan dari barisan pemasangan di kilang Proton di Tanjong Malim, dan ini membuktikan popularitinya dengan pelanggan sama ada di Malaysia atau luar negara. 

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In 2023, Proton achieved exceptional sales performance both domestically and internationally, with its sales in the Kingdom of Brunei Darussalam reaching a new record. Following a successful year, where the company surpassed 150,000 units in domestic sales, Brunei showed remarkable growth, setting a new sales record for Proton.

After selling 422 units in 2022, Proton’s sales in Brunei increased by 87% in 2023, with 789 units of Proton vehicles sold. This outstanding performance elevated the brand to fifth overall in the sales table, capturing a market share of 5.4%, up one spot and an increase of 2.2% over the previous year. The Total-Industry-Volume (TIV) for Brunei also saw growth, closing at 14,640 units for 2023, up from 13,000 units in 2022.

The Proton X50, which has been the best-selling Proton X-series model since its introduction in October 2020, emerged as the top-selling model in the B-segment SUV category in Brunei. With 476 units sold in 2023, the Proton X50 accounted for approximately 60% of total Proton sales in Brunei and secured the third position in its market segment.

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Introduced towards the end of 2023, the S70 was one of the most highly anticipated new Protons simply because it is the first B-segment sedan the company has introduced in a few years. We shall debate whether it is a B or C-Segment model shortly, but every new Proton introduced in the past few years has been an SUV, and the S70 is a refreshing addition.

The S70 can be viewed as the successor to previous Proton sedans such as the Inspira and the Preve, but it does not share any technical similarities. In fact, the S70 is based on the Geely Emgrand which is a left-hand drive model in markets such as in China and the Philippines.

But it is not a simple rebadge, though the new Proton shares a number of commonalities with the Geely and is largely the same in terms of design except for a new grille and updated bumpers.

Proton did localise the S70 and says that it has been “tuned for Malaysian roads”. According to a powerpoint slide shared by Proton before a recent media drive, Proton spent 75,000 man-hours on testing the new car, 260,000 man-hours was also spent for R&D for Design Engineering, Proton’s engineers drove the car for a total of 1.2 million kilometres during road testing, and 453 new parts were developed to turn the Geely Emgrand into the Proton S70.

So, no. It is definitely not a simple rebadge.

The flagship variant, which is what we reviewed is officially known as the Flagship X and sits above three other variants. Prices for the S70 start at RM73,800 and goes up to RM94,800 for the top-of-the line variant.

During the launch, Proton said the S70 is a C-Segment model with B-Segment prices. Though we think that is far-fetched because the S70 is smaller than its C-Segment competitors, but the more for less marketing strategy is something Proton has used before and is in fact ingenious.

The reality is, the Proton S70 is closer to the Honda City and the Toyota Vios than it is to the Honda Civic and the Toyota Corolla Altis. Even so, it has the competition beat in almost everything, but pricing in particular.

The Honda City ranges in prices from RM84,900 to RM99,900. There’s also the most expensive City which is the hybrid variant that costs RM111,900, but because there’s no S70 hybrid, we shall leave that out of this.

Then there is the Toyota Vios which ranges in price from RM89,600 to RM95,500. So the Proton S70 is definitely the most obvious choice.

But the S70 is not only cheaper, but it also has an interior that is hugely impressive as well. The minimalist interior is similar to that of the Proton X50 and offers clean lines without the clutter of buttons and dials to distract you. It is also remarkably well built. Short of getting it stuck in mud and the beach, we drove it over all types of roads, and there was nothing that buzzed or rattled.

A few makers have tried the minimalist design approach and failed because the important buttons such as the air-conditioning controls and even audio controls are located deep inside in the infotainment system, which can be distracting.

But the S70 has physical buttons for the air-conditioning, while audio controls are located on the steering wheel. We would have preferred physical buttons for the audio as well so that the passenger can get to it easily, but we can live with the current set up.

The seats too are impressive with just the right amount of back support; however, thigh support could be better. It is difficult to beat the Honda City when it comes to seats, and the Honda still has plusher, more comfortable seats all around.

Though the interior is about the same as the X50, the S70 uses the same gear selector as the Proton X90, which means operating it needs some getting used to. You need to flick (not shift) the selector down twice to move from park to drive, and then up once if you want to select reverse.

There is also the option to shift manually, but even that requires a rewiring of the brain. Usually, manual shifting entail moving the selector down for upshifts, and up for downshifts. However, with the S70, you need to shift left for downshifts, and right for upshifts. Proton says this is a similar system to Volvo, but that does not mean it is good. Thankfully though, you simply need to press the P button to select park.

But that is about it as far as complaints about the interior goes. In fact, that’s as far as complaints about the S70 goes.

Tech wise, the interior of the flagship model offers a 10.3-inch digital instrument cluster and a 12.3-inch infotainment system with music played back through six speakers. There’s still no Apple CarPlay and Android Auto but the good news is that Proton acknowledges that its customers want those features so is actively working on it. And once it is offered, those features will also be offered in some older models, if the hardware of the car is able to support it.

The Flagship X model also offers a sunroof which is something that we appreciate as there is nothing like opening the roof on a cool morning or sunset.

What is also quite impressive is the way the interior refinement. When driving around town, the interior is quiet and does well at keeping noise and vibrations down to a minimum. However, tyre and wind noise is quite apparent at highway speed past 110km/h.

The S70 runs on 17-inch Goodyear Assurance Triplemax tyres which are designed for longevity and durability, as such it uses a harder compound, and a by-product of such compounds is that road noise gets transferred back to the cabin.

The suspension is a combination of MacPherson struts at the front and a torsion beam at the rear. The set-up is similar to its competitors but is a nice balance of comfort and sportiness. When chucked into corners at high speed, the S70 obliges with little body roll and near neutral handling (no understeer or risk of the rear snapping out of line).

And when you have your family or friends in the car, it does a brilliant job at soaking and isolating dips and road ruts. Some netizens have criticised Proton for using a torsion beam, saying that it is uncomfortable. But a properly set up torsion beam suspension is just as good if not better than a multi-link suspension, and Proton deserves credit for the impressive ride and handling.

The powertrain on the other hand consists of a 1.5-litre, three-cylinder, turbocharged engine producing 150PS and 226Nm. Power is sent to the front wheels through a seven-speed dual-clutch gearbox and the S70 needs nine seconds to reach 100km/h from a standstill. We saw a fuel consumption rating of 9.6-litres per 100km but that is after flooring it on the highway and getting stuck in Penang traffic. The official fuel consumption figure from Proton though puts it at 6.2-litres per 100km.

The engine has been reworked by Proton. It is the same engine that powers the Geely Emgrand but Proton added a turbocharger which in turn added performance. Power is decent and delivery is just shy of instantaneous with just half a second of turbo lag before a wall of torque meets the demands of your right foot.

However, Proton is still working on refining the turbo lag issue, particularly from a standstill. The moment of nothingness and the sudden surge of power often results in a wheelspin which can catch some drivers off guard, particularly when turning into a junction or getting off from a traffic light. This was felt by other members of the Malaysian motoring media fraternity who were unanimous in their feedback regarding the turbo lag.

But besides that, the Proton S70 is very nearly a perfect B-Segment car and will take the fight to the Honda City and the Toyota Vios. Particularly with its spaciousness, quality, pricing and powertrain.

While the competition makes do with whinny CVT gearboxes, the S70 stands out by offering a quick and smooth shifting dual-clutch transmission, just like the one in the X50 and X70. And the dual-clutch will always trump the CVT when it comes to refinement and response.

All-in-all, the Proton S70 seems like it is going to create some sleepless nights for the teams at Honda and Toyota. Proton is hell bent on offering a good product and has even resorted to delaying some deliveries to ensure that quality is not sacrificed.

But from what we experienced during our drive, Proton has a clear winner in the S70, but in a market that prefers SUV’s over sedans, time will tell how well it sells.

Specifications:
Engine: 1.5-litre, 3-cylinder, turbocharged
Power: 150PS@5500rpm
Torque: 226Nm@1750rpm
Transmission: 7-speed, dual-clutch
Suspension: MacPherson (front) / Torsion beam (Rear)
Price (As tested): RM94,800 (Flagship X)

We like: Design, quality
We don’t like: Gear shifter

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