PROTON EDAR SIGNS NEW DEALERSHIP AGREEMENT WITH EON TO RATIONALISE DISTRIBUTION NETWORK

PROTON EDAR DEALERS ASSOCIATION MALAYSIA
Press Release

“PROTON DEALERS ARE UNITED AND STRONGER TO COMBAT THE RECESSION AND STIFF COMPETITION FROM NON-PROTON COMPETITORS”

MAY 2009, KUALA LUMPUR. “Proton dealers are now united with Edaran Otomobil Nasional Berhad (EON) signing the Master Dealership Agreement with Proton Edar. Proton Edar branches, dealers as well as EON branches and dealers should not be competing with each other but should be competing with the non-proton competitors” said Armin Baniaz Pahamin, Acting President Proton Edar Dealers Association Malaysia (PEDA).

1. Currently there are 4 types of showrooms and Service centres in the Proton network. Firstly, Proton Edar branches which are Proton showroom and service centers that are owned and operated by Proton Edar. Secondly, dealers showroom and service centers which are owned and operated by entrepreneurs appointed by Proton Edar. Thirdly EON as a Super-dealer having owned and operated their own chain of showrooms, service centers and authorized to appoint their own dealers. Fourthly, the EON appointed dealers which are sub-dealers to Proton Edar under the management and supervision of EON.

2. The signing of the agreement today will eradicate the Proton Edar sub-dealer status or the EON dealers. The EON dealers will be absorbed directly under Proton Edar as Proton Edar authorized sales and service dealers subject to the compliance of Proton Edar terms and conditions.

3. EON will not be a Super-dealer and no longer allowed to appoint any dealers. EON will be similar to other Proton Edar authorised dealers.

4. Currently, there are significant differences in the Corporate Image compliance between Proton Edar and EON dealers. Proton Edar dealers had to comply to the stringent and exorbitant new Proton Corporate Image requirement whilst EON dealers corporate image had tainted the new corporate image implemented by Proton Edar.

5. There are also various differences in marketing strategies and approach applied by EON that created an indirect competition between EON and Proton Edar dealers. This internal competition should be entirely eradicated but instead dealer’s network should be united against non-proton competitors to increase Proton market share especially during this economic downturn.

6. Proton branding and goodwill is destroyed by unscrupulous dealers whom practices disorderly trade practice. The network merger with EON will see a standard ONE marketing, ONE operation procedures, ONE trade practice and especially ONE standard and ONE uniform Proton branding for the benefit of the public in line with the Government new motto of 1Malaysia.

7. EON Dealers Association Malaysia (EDAM) should be dissolved and de-registered with the new Proton dealership structure.

8. Proton Edar Dealers Association Malaysia (PEDA) welcomes EON dealers to be a part of PEDA with 1 goal and 1 objective and invite all EON dealers to attend PEDA Annual General Meeting & Election on 20 JUNE 2009.