Proton Needs to Aim Higher, New Chairman Says

Proton’s new chairman says the Malaysian automaker has to change its strategy from being a maker of cheap cars to becoming a world-standard car manufacturer.

Mahathir Mohamad, the former prime minister, tells reporters Proton always has been labeled as a cheap or poor-quality car maker.

“Now Proton wants to produce cars which are of world standard, but you have to pay a higher price,” he says. “You can't have a good car and pay a bad-car price.”

The government’s Bernama news agency reports Mahathir made the comments when reporters asked about his immediate plan for Proton.

He says when Proton produced the good quality Preve and Suprima cars selling for RM80,000 ($25,000), people claimed the price was too high for Proton.

If the market wants cheap cars, Proton can build them, Mahathir says.

“Proton has to make a living,” he says. “If consumers want cheap cars, Proton will make cheap cars; they run three miles and break down.”

Bernama says Mahathir told reporters Proton never has asked the Ministry of International Trade and Industry for funding, and he won’t be doing so now.

“No way,” he says. “Proton is a private company now and it is able to make progress in research and development.”

Mahathir was critical of the present government’s policy, saying it was encouraging importation of cars rather than supporting local industries.

“When you import cars, money flows out and you don't get any technology from them,” he says.