PROTON DEALERS CONFIDENT OF BREAKING-EVEN WITH NEW PROTON EXORA IN LINE UP

“PROTON EXORA WILL DETERMINE THE BREAK-EVEN POINT & SURVIVABILITY FOR PROTON DEALER”

APRIL 2009, KUALA LUMPUR. “The average monthly car sale per dealer had improved from 28 car sales to 35 cars of various mix model variance. Urban dealers need to sell at least 40 car sales per month to break-even. The launching of Proton Exora today, will increase the average car sales per dealer by 10 additional units per month to break-even.” said Armin Baniaz Pahamin, Acting President Proton Edar Dealers Association Malaysia (PEDA).

1. The new Proton Exora will be the 9th addition to Proton range of cars. Currently there are 8 model variances under Proton brand, namely Proton Satria Neo, Proton Waja, Proton Gen2, Proton Persona, Proton Arena (base on request), Proton Perdana, Proton Savvy and Proton Saga. Currently, the most sellable model are only Proton Saga and Proton Persona.

2. Given the quality and the price structure of the new Proton Exora, we are confident the new car will be well received and will increase Proton average car sales by at least 30%.

3. Proton Exora together with Proton Saga and Proton Persona is expected to contribute 80% of total Proton sales. Based from the expected monthly production, every branches and dealers will be allocated at least 10 Proton Exora per month.

4. This will be the basis for customer’s waiting list. Customers that booked prior to the launching today will be given the main priority for deliveries. Todate, we received more than 2000 bookings for the new Proton Exora nationwide without the customer sighting the new car.

5. The increase in total car sale per dealer, were attributed to the improvement in customer’s hire-puchase loan. Proton car buyer approval rate was critical at 30% approval rate or only 3 approvals for every 10 application for hire-purchase loan. Now approval rate has improved from 30% to 50% but PEDA believe the percentage of approval can be further improved.

6. Although the monthly average number of car sold per dealer has improved, but the profit per car sold is declining due to unhealthy practices by some unscrupulous dealers. Some irresponsible dealers offered higher commission to other dealers’ sales personnel to bid for customers. This is in adverse to the allowed commission fixed by Proton Edar and created an inevitable environment of highest bidder wins that resulted in major loss to dealers.

7. Dealers should be competing with Perodua or other competitors and should not be competing with other Proton own dealers. PEDA urge all Proton dealers to stop all form of disorderly trade practices that had damage the network and is not in the spirit of camaraderie and teamwork. PEDA is bounded by its constitution to protect all Proton dealers as well as the public and will not hesitate to recommend (to Proton Edar) for termination any dealers that are involved in any disorderly trade practices especially since Yg Bhg Dato Nadzmi Salleh, Proton Chairman had specifically and explicitly reiterate to rationalize the number of dealers.

8. Proton Chairman and management together with PEDA had agreed the first priority for any termination will be on the dealers practicing disorderly trade practices.

9. PEDA urge the public to visit and only pay for booking fees at the Proton authorized showroom/office and avoid making any payment to any sale representative outside the Proton authorized showroom and always insist for a duly signed valid official receipt bearing Proton logo and the authorized dealer’s name, address and contact number.

10. The scrapping policy introduced had negligible effect on new Proton car sales although there were a lot of inquiries. This may be due to the stringent qualifying requirement that requires all cars for scrapping to possess a valid road tax, in road worthy condition and pass the Puspakom inspection. The scrapping policy was introduced to spur the automotive sales during the current recession. The budget allocated for the scrapping policy will be a waste and the objective to spur the automotive sales will not be achieved with the unnecessary stringent requirement to scrap the 10 year old cars.

11. The 2nd financial stimulus that was announced earlier does not have any material affect yet on Proton car sales, dealer’s business operation or the automotive industry.

12. The public is still burden and are not able to dispose their existing car due to the low valuation. PEDA had proposed for the Government to establish a body that is independent from the bank to value the second hand car in Malaysia similar to other developed nation. The second car valuation should take into consideration the government policy in Bank’s margin and duration of finance, physical condition of the vehicles including any added accessories, accident history status, mileage of the vehicles, number of ownership, service and maintenance record and any history of criminal or fraud. There are various other factors that can be considered into the official valuation. The public will be less burden and the automotive sales will be in stronger with the establishment of the independent body.