Thursday, 26 July 2012

Bite the bullet, put Proton out to pasture

FREE YOURSAY 'After nearly 30 years, Proton still can't survive without being mollycoddled. This shows that Umno's protectionism has turned into a crutch.'

KJ: Cheaper foreign cars will kill Proton

your sayAnonymous #47094963: It is time the BN regime stopped using Proton to bleed the rakyat through high excise taxes and import duties.

It doesn't take a rocket scientist to know that Proton was a failure from day one if it could not produce/sell cars cheaper or at similar prices to imports (without raising/creating excise/import duties).

In fact, Proton cars are cheaper overseas than at home which a dropout would be able to tell you is ridiculous.

RockaBilly: Former PM Dr Mahathir Mohamad had made a mistake when he decided to set up Proton. Today, after more than 27 years, Proton has nothing to show for and be proud of.

Malaysia should have taken the Thailand approach. Instead of having its own national car, we should have allowed other car manufacturers to set up their facilities here and give them incentives and tax breaks, and that way we will not only have one Proton but tens of Proton-like companies all over Malaysia providing employment and boosting the economy.

Starr: Proton has burdened the nation for much too long. The whole country has been made to carry this project which has little or no hope of ever being profitable and self-sustaining without government support.

The auto industry is a highly competitive business requiring it to have a global reach for its products, without which it is doomed. Any government subsidy is only for short-term reliefs, but not for long-term viability.

Given the limited domestic markets, Proton cannot hope to survive merely on government subsidies alone without being able to compete in the global market.

What sense does it make when it's cheaper to buy a Proton car overseas than one at home? For every Proton car exported, the country has to subsidise it in a form of import duties for imported cars.

That is the reason why Proton is still making losses today and it is highly unlikely it will ever be profitable.

P Dev Anand Pillai: Proton has to be put out to the pasture once and for all with its assembly plants sold to the highest bidder and its workers retrained by their new employers.

At least they will stop making ‘s**t cars' for dumb folks to buy. Please see 'Proton and Angry Customer' on Youtube and you will know what I mean.

Proton is nothing but another failed project of the Great Revered Dr M. We could have produced air conds, fridges, tyres and other needy apparels and would have been world beaters by today.

Lim Chong Leong: Cheaper foreign cars will kill Umno cronies like the AP (approved permit) kings and queens who photostat APs and under-declare duties to make hundreds of millions.

Killing off Proton will also kill off all Umno rent-seeking suppliers to our car industries who over-bill and under-supply.

If Proton cannot survive in the open market, then it is a failure and must be euthanised like a diseased and parasite infested pet that it is.

Sayonara: Thumbs up to Anonymous #43051382 for saying, "By slashing the exorbitant excise duties on cars, there will be more spending power by the public."

With this increase in spending, more small businesses will flourish due to the savings being spend on their goods and services. This will have a multiplying effect on our domestic economy where every car buyers saved on taxes and loan interests.

The retailers who benefit from this will in turn spend on other goods and services and the wheel of 'economic multiplier' will be set in motion.

If taxes are high, only the BN cronies will benefit because the taxes collected will go to yet another 'mega-corrupted' project.

Danny Lazaroo: Proton will die if it is indeed producing a product that is inferior to its competitors. Is this what Umno Youth chief Khairy Jamaluddin and Proton are declaring? That Proton cars are inferior to other cars?

If they are indeed an inferior product, then this should be accurately reflected in its pricing. The price of foreign and local cars are artificially high - why should Malaysians pay more for a product?

Khairy's answer is that they should continue to pay more for the product because it means income for the government. It's an honest answer, but it is devoid of principle and places the government ahead of the people that it is meant to serve.

In actuality, eventual abolishment of these taxes will actually cause the prices of cars to stabilise to a realistic value - Proton cars will indeed be cheaper than foreign cars as they are manufactured locally, and that is how it should be.

Foreign, and better quality cars, will be more readily available and affordable. The average Malaysian wins on both counts.

Anonymous #18452573: In saying so, Khairy is admitting that the government is already benefitting excessively at the expense of the rakyat.

RM4.6 billion in revenue are technically borne by the purchasers of the cars, which is the reason why foreign cars in Malaysia are extremely costly.

The BN government has been using the rakyat's money like its personal piggy bank while enriching only a few, be it ownership of gas companies, toll, car-parts suppliers, etc, who are mostly BN cronies.

TimsTime: What is RM4.6 billion compared to RM65 billion spend on MRT that serve passengers from Sungai Buloh to Kajang only and RM6.8 bil for Langat 2 water treatment plant?

Having to pay duties of RM15,000 for a Perodua Kenari is equal to forcing the rakyat to pay an income tax of 15 years in advance, not including the RM15,000 in inflated insurance premium of RM390 per year (15 x RM26, per RM1,000).

These people in BN don't do their maths. Which political party is more rakyat-orientated? The answer is quite clear.

Bad Feng Shui: After nearly 30 years, Proton still can't survive without being mollycoddled. This shows that Umno's way of protectionism has turned into a crutch, similar to its NEP.

Save our currency: Find a suitable partner for Proton even if we lose control. Perodua can do it and succeed with Daihatsu and Toyota.

In the first place, our market was too small to support a car industry. Worst of all, our incomes were kept low and buying even a Proton is two or three years' salary compared to six to nine months in most other developing countries.

Buy a car and you sacrifice purchasing accomodation or housing. Cars are unavoidable because of the poor public transport system.

Our incomes have been sucked up by car purchases. Indeed, public transport and housing should have come first, instead of cars.

Black Mamba: KJ, if PKFZ (Port Klang Free Zone) wasn't built at an exorbitant price, we would have billions left in the Treasury. If Dr M didn't wasted billions in the London Metal Exchange, we would have billions in our Treasury.

If Limbang wasn't given away freely by your father-in-law, Petronas could be pumping barrels of oil by the day to earn us billions, but then the billions will be squandered off to bail out the PM's son and cronies who failed in business or paid off in inflated project costs in Putrajaya, KLIA, MAS and of course not forgetting, Proton, which sold its motorbike division for one euro, and became the laughing stock of the motor industry when the buyer later sold it for millions.

Look at Pakatan Rakyat-run states of Penang and Selangor - with prudence they have increased the state's coffer from almost negative left behind by the corrupt BN.

Give Pakatan the rein of federal government and all Malaysians will see true transformation, not of the alphabet-soup type promoted by BN.

Khairy, are you driving a Proton yourself to help the industry from dying?

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