Malaysian Prime Minister Najib Razak says the launch of the new Proton Perdana executive sedan could be a turning point for the struggling national automaker.
Razak says the launch of the fourth-generation Perdana symbolizes the government’s determination to help Proton regain its glory days and put it on track to greater profitability.
The government’s Bernama news agency quotes him as saying Proton also could prove it is a serious player in the automotive industry and continue to have a major role in the development of local talent, vendors and entrepreneurs.
But Najib says today’s Proton is not in the position it should be, lacking both R&D proficiency and the production scale required to remain competitive.
“At times, there was a sense of hubris, that Proton could do anything as the government would always back it,” he says.
Two factories capable of producing 400,000 units annually were built, but Najib says Proton last year sold only 102,000 cars and its share of the domestic market fell to 15% from a peak of 74% in 1993.
Najib says the government has provided Proton grants of nearly 14 billion ringgit ($3.4 billion) in various forms of assistance and foregone taxes since its formation in 1993.
The government approved a soft loan of MYR1.5 billion ($366.5 million) in April and Najib says the urgent need for the cash injection exposed structural flaws within Proton.
The prime minister says Proton had flourished due to a high level of government assistance, and Malaysia’s national car industry grew under the umbrella of protectionism with quotas on engine sizes and high import duties on foreign cars.
He says with government assistance, Proton must meet stringent standards of professional management to move forward, ensure it has a model for long-term sustainability and immediately locate a strategic foreign partner.
“The company must prove itself, both in the domestic and international markets,” Najib says. “The launch of the new model Proton Perdana should be the start of a fresh chapter in the company’s history.”
Proton says the new Perdana, developed in collaboration with Honda, marks its re-entry into the D-segment market with a sophisticated yet sporty executive sedan.
“Proton stopped the production of the Perdana in 2010 and the anticipation of the general public for us to produce a new Perdana has pushed us to produce a new level of affordable premium comfort, packaged in this distinctive stylish car,” Proton CEO Fuaad Kenali says in a statement.
“We took great care to ensure that the car is ready to be launched as the new Perdana signifies a new Proton.”
Fuaad says Proton has received about 900 responses since it opened bookings for the Perdana in February and expects to sell about 3,000 units by year-end.
Priced at MYR113,888 ($27,830) and MYR138,888 ($33,936) for the 2.0L and 2.4L variants, respectively, the Perdana’s 4-cyl., 16-valve 2.0L produces 154 hp and 139 lb.-ft. (189 Nm) torque. The similarly configured 2.4L makes 178 hp and 164 lb.-ft. (222 Nm) of torque.
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