Thursday, 2 July 2009

EDAM is frustrated..

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I read the Utusan Malaysia dated 2 July 2009 (see: utusan) and felt the need to clarify the press statement by EON Dealers Association Malaysia or EDAM that may be confused with Proton Edar Dealers Association Malaysia (PEDA).

In the statement, EDAM expressed their regret and dissappoinment with the management of Proton Edar for offering them an exit plan with compensation.

According to EDAM President Dato Man Mat, EDAM dealers require more time to deliberate instead of the 2 weeks 'take-it' or 'leave-it' offer. Forgotten, the compensation scheme was offered even much earlier (2 years ago) and as Dato Man quoted in his press statement, 70 dealers had already accepted the offer and there is only 65 EON dealers left (from previously 135 dealers). Hence, the 2 weeks is probably the cut-off time from a more than 2 years old offer.

"Persoalan pembayaran pampasan itu, kata Man, sememangnya diperjuangkan oleh EDAM sejak 2007 yang menyaksikan bilangan ahli EDAM ketika itu sebanyak 135 buah, kini berkurangan menjadi 65 sahaja."

Dato Man further reiterate:

''Sekarang pun, ada kalangan ahli yang bersedia menerima pampasan itu kerana pengurusan Proton mengkehendaki pengedar melabur lagi, terutama dalam pemaparan imej korporat yang sama. Ini memerlukan tambahan dana yang tidak mungkin dapat kami semua penuhi."

Dato Man said the majority of EON dealers do not have the required fund to upgrade the showroom as per their new principle Proton Edar's (from previously EON Berhad) requirement. Proton Edar dealers had already complied and conformed to Proton Edar new corporate image renovation that cost them between RM300,000-500,000. EON dealers showroom was a legacy from EON and some of EON dealers is even without any airconditioning.

Personally, I believed the offer was extended in good faith and if the offer is not feasible, then EDAM members should just reject it. The offer was more than 2 years old and should have a cut-off time for the exit-plan acceptance. There must also be a deadline for the corporate image compliance that PEDA dealers had to earlier complied with. There were many PEDA dealers that was terminated for breach of Corporate Image compliance without even any compensation, hence, the offer to EON dealers was a cushion for their exit.

Dato Man further called for EON branches to be closed if the EON dealers had to surrender their dealership.

''Persoalannya, jika pengedar EON ditutup, mengapa perlu ada 32 cawangan EON pula? Mengapa tidak ditutup kesemua 40 cawangan EON supaya 40 ahli perniagaan EDAM boleh meneruskan kesinambungan hidup dalam penjualan automotif," ujarnya.

PEDA is opined and had on various occasion communicated and even appealled for the closure of not only EON but the Proton Edar operated branches as well to allow individual entrepreneurs to be nurtured and developed. Proton Edar unofficially accepted PEDA's proposal for the closure of Proton Edar operated branches but subjected to the majority of dealers are able to upgrade their showroom into a Platinum Showroom.

Proton dealers (PEDA & EDAM) have a choice to either exit with the negligible compensation or to consolidate and become stronger or risk being terminated without any compensation. Either way, its a business decision that is not only affecting EDAM but the whole Proton network.



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