Proton told to set sights abroad<\/p>\n
Agence France-Presse, Tanjung Malim, Malaysia<\/p>\n
Malaysia's prime minister on Saturday told Proton to set its
\nsights abroad as he launched the national carmaker's 1.8 billion
\nringgit (US$474 million dollars) new manufacturing plant.<\/p>\n
Abdullah Ahmad Badawi, who is also finance minister, said
\nProton had become the country's national pride but added the
\ncompany needed to improve the quality of its vehicles and boost
\nits global competitiveness.<\/p>\n
"Proton can't escape having to compete. It is a challenge they
\nmust meet," he told a news conference after officially launching
\nthe plant.<\/p>\n
"We will give them the backing and the support but the support
\nis for them to produce cars of high quality and that are priced
\ncompetitively in the market not only in Malaysia but also
\nabroad."<\/p>\n
Proton's sales are suffering amid increased competition from
\nforeign auto giants and three other national carmakers as the
\nMalaysian auto market gradually opens up under a regional free
\ntrade pact.<\/p>\n
Abdullah said the new Proton plant, which has an output of
\n150,000 units a year and could be ramped up to one million units
\neventually, was a key step in Malaysia's effort to become a
\nregional auto manufacturing hub.<\/p>\n
He declined to say if the government would provide further tax
\nrelief to Proton, but told them to "work hard and make good
\ncars."<\/p>\n
Asked if Malaysia could support four national carmakers
\nincluding Perodua, Naza Kia and Inokom Hyundai, he said: "The
\nmarket is not only Malaysian market but is beyond Malaysia, so I
\ndon't believe it's too many."<\/p>\n
"At the moment, there is no talk about merging (the four
\nnational carmakers). I won't know about the future."<\/p>\n
Abdullah also denied reports former premier Mahathir Mohamad,
\nwho was appointed adviser to Proton last year, was interfering
\nwith management efforts to revamp the long-protected automaker.<\/p>\n
"No, no, I appointed Dr. Mahathir as an adviser not only
\nyesterday. Stop all these allegations. That's never been an
\nissue," he said.<\/p>\n
Mahathir, who retired in October 2003 after 22 years in power,
\ncreated the company in 1983 as part of Malaysia's drive into
\nheavy industry.<\/p>\n
Proton used to sell six out of every 10 new cars in the
\ncountry, but its market share fell to 44 percent last year, from
\n48 percent in 2003.<\/p>",
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