Proton fights to improve quality<\/p>\n
KUALA LUMPUR (AFP): Malaysia's national carmaker Proton is
\nworking to improve quality to ensure it can compete with global
\ngiants when the local market is opened up in 2005, a senior
\nofficial says.<\/p>\n
Perusahaan Otomobil Nasional Bhd. (Proton) is collaborating
\nwith the British Lotus Group, which it owns, and with Michigan
\nAutomotive Research, said International Trade and Industry
\nMinistry parliamentary secretary Fu Ah Kiow.<\/p>\n
\"Five factors influencing consumer tastes will be studied,
\nnamely pricing, design, engineering, safety and brand loyalty,\"
\nBernama news agency, in a report late Tuesday, quoted him as
\ntelling parliament.<\/p>\n
Fu said the carmaker also plans to build overseas plants to
\nincrease production capacity in certain sectors.<\/p>\n
Proton's tariff protection from imported cars will almost
\ndisappear in 2005 under the ASEAN (Association of Southeast Asian
\nNations) Free Trade Area.<\/p>\n
AFTA is due to come into force in 2003 but Malaysia won a two-
\nyear deferment for its auto industry.<\/p>\n
\"The deferment gave the local automotive industry, which is
\nsaddled with high production costs and the inability to attain
\neconomies of scale, breathing space to boost its capacity to
\ncompete in the open market,\" Fu told parliament.<\/p>\n
To attain economies of scale Proton would have to produce
\n350,000 cars a year against its current capacity of 230,000, he
\nsaid.<\/p>\n
Fu said Proton must strengthen research and development and
\ndesign and manufacture main components such as engines and
\ntransmission systems as well as cut costs.<\/p>\n
He said Proton was cutting costs by sourcing components to
\nmore than 2,000 suppliers of whom 20 would be main suppliers.<\/p>\n
It was also studying ways to penetrate the West Asian and
\nLatin American markets.<\/p>",
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