The Proton vs Mercedes Issue
The recent revelation of Terengganu’s state expenditure worth RM3.43 million to purchase 14 Mercedes-Benz E200 Kompressor at RM 3.43 million to replace the Proton Perdana V6 used by its state executive councillors (EXCO) and senior officials has provoked an outcry. However, Terengganu Menteri Besar Datuk Ahmad Said argued that the decision is in fact a wise one, as it is more economical and cost-saving in the long run, although the cost of purchasing may seem unreasonable at present. The explanation may to certain extent justify the expenditure, but more importantly, it offers an insight into how Malaysian leaders deal with issues and resolve problems concerning the public.
One of the top leaders claimed that all the menteris besar in other states knew that the official Proton Perdana V6 Executive cars were faulty, but did not want to admit it. I find it disturbing to hear this as I always thought that leaders are supposed to be opened to ideas and constantly seek improvements, especially when the issue is related to one of Malaysia’s prides–Proton–and reluctance to admit the problems seems unacceptable. As Malaysia is slowly graduating from a developing country into a developed one, it is crucial for Malaysia to produce products of relatively good quality. I can understand if a Singaporean opts for a Mercedes over a Proton, as Singapore does not produce its own cars and if he is to buy a car, of course a better car (in terms of quality, performance, design and reputation) will be on top of his mind. However, it is very disappointing to see the Malaysian leaders themselves do not support our own products, and yet put the blame on the poor quality, instead of seeking for solutions. Let me put it this way, if the ones leading our country are reluctant to voice out their opinions to gain improvements, how are we going to achieve our aims of becoming a developed country? Leaders are supposed to lead, and leading here means that they are supposed to make us and the country go in the right direction. Are we going to head to the right direction if our leaders themselves are burying their heads in the sand and pretend that the problems do not exist? Unlikely.
Yes, we have got figures showing that a Mercedes will be more cost-saving and economical compared to a Proton in the long run and the Ministers can use the state expenditure to purchase the Mercedes so that they can save the rakyat’s money (as claimed by the leaders). Saving rakyat’s money however does not appear to me as justifiable. Fair enough, a Mercedes is more cost-saving but not everyone can afford a Mercedes. At least I personally can’t afford one and the best that I could get is still a Proton. So what will happen to those who cannot afford a Mercedes and they can only buy a Proton? You do not have to be an actuary to realise that people like us who cannot afford a so-called cost saving Mercedes will end up paying more for maintenance for our Proton. Our money is saved when the Ministers do not use the funds to repair their Protons, but our money is wasted, when we have to send our cars for maintenance. So in what way is our money saved?
To me, the main argument should not be on the issue if the leaders should buy the Mercedes or not. The issue should be focused on how to improve the quality of the cars (which are not even favoured by our own leaders) so that the public can benefit more by supporting our Protons. It is hard for our voice to reach to the management team of the country, but the leaders can do their best in representing the public because they are part of the public themselves. If they “have” to buy a Mercedes, all of us have to as well.
Of course, this is only an example (a bad one, perhaps) that reflects the way our leaders lead and think. This example alone should not generalise all leaders in Malaysia as I do believe that there are still good leaders who aim to bring Malaysia to a greater height and care for the nation. I believe that if our leaders put self interest aside and plan well to develop Malaysia, our country is going to gain success very soon. Meanwhile, the leaders should try to face the problems and solve them, instead of choosing alternatives to cover the problems. So long as the root of problem is not confronted, the Proton vs Mercedes issue, where those in power get to benefit at the expense of other people, is likely to repeat itself.
July 24th, 2008 at 8:36 pm (#)
The more pressing issues for me:
1) Why Mercedes? I think the Toyota Camry would’ve made a much better and cheaper alternative. It’s comfortable, classy, big, fast, and only about RM150,000 and it’s Japanese so that means the parts are cheaper and the resale value is higher?
2) Where did they buy the Mercedes cars from? Naza? That’ll certainly raise a few eyebrows.
July 24th, 2008 at 8:39 pm (#)
I think the reason Mercedes was chosen is because of its appearance and the status at which it symblosises. Mercedes=Classy. Maybe that’s the reason.
I certainly have got no idea where they bought the car.
July 24th, 2008 at 8:46 pm (#)
Typical Malaysian, la. Everything looks great, but working well? A big maybe.
July 24th, 2008 at 8:50 pm (#)
Yes. Malaysians like to have things which look good and tend to neglect practicality, maybe that explains why most Malaysia’s products look nice from the outside but the quality is always questionable.
July 24th, 2008 at 9:37 pm (#)
Hm. Ever since Kompressor was released into the market I began shaking my head in disbelief and saying, “Mercedes’ reputation’s going down.” Now those menteris are having it ! That’s the price we sometimes pay for voting people whom we trust - and turn out to be unscrupulous.
Meanwhile, except for the look of the Myvi, has Perodua done any mistakes ? I quote your previous statement “Malaysia’s products look nice from the outside but the quality is always questionable” - I’m talking about cars now - Proton has lost its lustre. It’s evident. After having rejected all those foreign partners (BMW and such), they’re now at a dismal state and are pressing for a partner. Perodua, on the other hand, has Daihatsu, a force to be reckoned with, and so for the most part, the quality isn’t that questionable. People who do Business Studies with me talk about this among themselves and say that Proton has to merge with Perodua; then only will things get better. But what do you think ?
July 24th, 2008 at 11:22 pm (#)
Well, first of all, I quite like the look of Myvi and I don’t quite get the “mistake” you are refering.Mind elaborating more on the issue? =p
I was making a general statement about Malaysia’s products. The reason why Malaysia isn’t competitive enough is because Malaysia (generally) produces products with good looks, but the quality isn’t as good as expected. I suppose merging will help provided that the technology and expertise are properly shared. Otherwise, if the companies stay under the protection of government, there isn’t going to be much improvement as the companies have the tendancy to get complacent.
July 24th, 2008 at 11:40 pm (#)
The Kompressor is an excellent piece of technology. It makes an engine behave like a similar engine several hundred ccs more. How would it bring the downfall of Mercedes? Makes no sense.
Proton and Perodua merging will just make the Malaysian car monopoly more so. Then the govt. will act to safeguard this merged company, “Produa” or “Peroton” (haha they sound like their old names anyway) even more!
They can only improve by getting back to basics; making high quality parts FIRST, like the Koreans did (and whom we are actually emulating), and then progress to making the whole car proper. After they have done this FIRST can we progress to discuss about improving the overall car.
July 24th, 2008 at 11:48 pm (#)
Another question here, are they ready to go back to basics? Or, are they willing to admit their mistakes and revert to basics?
July 25th, 2008 at 1:43 am (#)
#1. I don’t think what the top leader meant by other top politicians not admitting proton V6’s weaknesses as a sign of their performance in terms of managing the country, i.e. not improvising. it’s quite a common and known fact that Proton’s quality isn’t really world-class.
But i do understand where you’re coming from - you want to see active voices by these people to push for improvement in Proton (and other things related to governing msia).. and that’s a good point.
#2. I can’t really make comparison between qualities of cars cos im not one who really keeps up with new models.. but I think I agree with michaelvaght in questioning - WHY buy a mercedes that’s worth millions when you can get a less costly or just as good quality car at a lower price (i.e. Toyota Camry or Kompressor)? IF it’s really quality and practicality that is the main concern.
#3. A little fact on Proton and Perodua - Proton makes its cars from scratch and Perodua only assembles a car (which btw isn’t all Malaysian-made)..so both companies have diff concepts of work and deal with diff things. Perodua’s already dealing with non-Malaysian companies, and merging them both may result in making Proton NOT truly Malaysian made anymore… because to think about it, what would be Perodua’s interest to let go of its partnerships (i.e. Daihatsu who holds a major stake in Perodua)?
Just something to think about.. =)
July 25th, 2008 at 9:38 am (#)
puteri: and for the very fact that Proton has refused to deal with other MNCs, look at the state it is in right now. For the fact that Proton makes its cars from scratch, it may be a good thing (in the sense that it’s all made and assembled in Malaysia), but can’t they do the same with an MNC around ? And then again, working on their own has made them rather product-minded and not market minded - when they worked on the Juara, for example, the functionality was there, but not the look. When it was placed on the market, it was a total goner. Just recently they recalled back all their Savvy models (when they actually said that THAT was the only car built tougher than any other model, and that was the only car which obtained a TUV approval).
boonseonglim, michael: =) thanks
July 25th, 2008 at 12:03 pm (#)
i think toyota camry or honda accord is the new “mercedes” in town. there are big, fast and classy. like michaelvaght said. he lack of ability of our leaders to admit the V6 is faulty is dissapointing. yes, everybody know that the V6 is not good anymore. in fact, the proton people also know that the V6 isn’t cool anymore.the design is old. come on, all these years and the V6 hasn’t changed its design/everything even a bit?its like Nuri helicopter, only that it hasn’t crashed or broke in the middle of nowhere, yet.
the question is, why we want the leader to admit that the V6 is not good anymore? the answer is simple. the leaders have the power to make things change. and we the rakyat don’t have the power. we can keep saying “please change/update the perdana!” for 20 years straight and the it will not turn into a new perdana. that’s why we need the power of the leaders.
July 25th, 2008 at 5:48 pm (#)
It’s true, Juara wasn’t much of a champion was it?
And i do agree w annette that Proton should consider merging with MNCs. But looking at the social condition and the pride of gov in wanting Proton to be truly Malaysian.. i don’t see it happening.
Whatabout another alternative in improving Proton which doesn’t require merging w MNCs.. like hiring fresh automative engineering grads w innovative ideas for betterment in the creating and quality control process itself OR allocating more money towards Proton’s R&D to produce better cars.
But i have one other question too.. if all these were to happen, the price of Proton cars will definitely be higher.. given that the average income earning Malaysian is already comfortable using the current Protons (well, we dont see all protons breakin down everywhr now, do we?) and it suits their economy level very well.. wouldn’t it also cause a drastic change? Is it really necessary to increase car price now with the price of oil booming in the market?
I believe to do improvements, we must also prioritise and consider a LOT of other factors. in this case, there’s too much involved.
…And mind you, personally, i dont mind if the Proton cars’ improvement is focused on making it more fuel efficient because that’s really what the world (malaysians, etc) needs right now.
Another 2 cents from me.. (which makes my opinion now worth 4 cents.. hm. why can’t oil price be as cheap? haha)
=)
July 25th, 2008 at 9:25 pm (#)
puteri:
down with the champion. Meanwhile, we do see Protons disintegrating every now and then - think why they recalled all Wira and Savvy models, and why a Tiara sells in the second-hand shop for only RM 500. (Surprisingly enough, Tiara’s parts come from Citroen).
Speaking about fuel efficiency, do you think Perodua made any mistakes ? (I reckon the only mistakes they did were the looks of the Kenari and the Myvi, and the assembling of the Nautica - which was not done locally, but that’s all) o.O
July 25th, 2008 at 10:26 pm (#)
I find it positively entertaining how half this site talks about relationships and love and now we have a car forum here haha.
Essentially the problem with Proton is like this. From its inception, it has always been protected, so competitiveness flew out of the window a long time ago.
At the time Proton came about, foreign car companies have already been aggressively innovating themselves. They were also working hard to achieve economies of scale and produce better and more cars than what Proton can. Because of this, Proton had to be protected. But because they are protected, they are not competitive, so the drive to innovate and achieve economies of scale is not as strong. And this is why without the safeguards, RM100,000 will always get you a better foreign car than a similarly-priced Proton.
And this problem will never end as long as the safeguards will always be there. Sans safeguards, Proton will be forced to be more competitive and hence better, or, fail miserably. The government is too afraid of the latter option that it doesn’t want to find out.
And until then, we will always be offered these plastic, lifeless cars .
July 29th, 2008 at 3:50 am (#)
First of all, C&C/NAZA…Mercedes manufacturer should thank & be grateful for the FREE ads by our government promoting the Mercedes.
It doesnt matter whether a Proton, Mercedes, Honda, Toyota, Nissan, BMW, Audi, Peugeot or any brand of vehicle been use. The justification shall base on the value/sizes rather than the brand of vehicle. For example : current issue V6 vs E200K.???? what if a
V6 vs Camry??? V6 vs Waja Chancellor?? V6 vs 4×4???? V6 vs MPV??? Is the problem now because of the Brand or the Price????
July 29th, 2008 at 9:40 pm (#)
I think the politicians placed their priority at the wrong place. To me, it seems like they are choosing the cars based on the brand (as I have mentioned earlier, Mercedes=Classy) and not other factors. I do agree with Michael- as long as the protectionism is not lifted, there will not be incentives for Proton to innovate and stay competitive. They are protected because they are not competitive but they will stay so as long as they are protected. The spiral effect has to be stopped. Otherwise, the X-inefficiency will only lead to poor quality products produced by our country.
August 2nd, 2008 at 12:06 pm (#)
Shouldn’t this (ideally) be a wakeup call for Proton ?
August 11th, 2008 at 1:16 am (#)
politics!
enough said.
October 9th, 2008 at 2:03 pm (#)
Proton did not refuse any deal from any MNC. it was rejected by the MNC. that is because proton wanted 51% stakes in the company giving them control.
the MNC or VW of coz declined. here we have a world class corporation and another, a half past 6 corporation producing cars that can be squashed as easily as a coke can. why would VW ever agree?
our first proton ever to roll out of factories was said to be copied from Mitsubishi. Including the engine. if we did, the engineers werent wearing their spectacles when they were coping it.
the japanese corporations, rebuilt after the devastation of the war were never this big. back in those days, they were small companies like proton. but they copied models from GM and Ford. not only did they copy it, they made it better. Well, GM arrogance where their cars could burn helped japanese corporations but those are secondary reasons.
Introducing proton created jobs in many ways, eg building roads that had pot holes after 3 months, linking up family and friends.
However, please note that proton was rich enough to buy over Lotus a reowned british sports car company; which iwas also losing money. Lotus is for city driving and u can only fit a single luggage inside. If proton was so rich, where has all the money gone?
Let proton be run by a private company and see how much more it can become instead of producing cars.
All car companines copy each other models. look at how the new S class Mercedes look like a toyota camry. lets not mention korean car companies that copy BMW, mercedes. they at least produce quality copies.