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July 19, 2007

Proton should be an assembler: senator
A Malaysian senator on July 19 suggested that Perusahaan Otomobil Kedua Bhd (Perodua) be made the sole producer of national car and Perusahaan Otomobil Nasional Bhd (Proton) a car assembler.

Senator Dr Mohd Puad Zarkashi said this was because Perodua had shown more success in terms of sales besides being more popular among local car buyers.

Proton on the other hand has not only been experiencing the problem of competing with the popularity of Perodua models, but has been also facing stiff competition from automobile assemblers like Naza Motor Sdn Bhd, DRB-Hicom Sdn Bhd and MOFAZ.

He said Proton was also facing difficulty reaching an understanding with an international automobile company like Volkswagen in its efforts to expand its sales.

Therefore, Proton should become an assembling company like Astra International in Indonesia so that its potential can be unlocked and that it does not just drown if it fails to achieve any deal with an international automotive company.

"I feel that Proton's role should be made like that of Astra in Indonesia, which is an assembler only for Toyota, Daihatsu and Isuzu vehicles and they have a huge market just as an assembler alone.

"There is no need for two companies to produce the national cars as we do not know if the negotiation (Proton) with Volkswagen will resolve the problem," he said when debating the bill on investment incentives at the Dewan Negara in Kuala Lumpur on July 19. Bernama

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