Proton eyes world market in pact with Hawtai

Sunday, October 23, 2011


Proton eyes world market in pact with Hawtai

NANNING (China): Proton is not only planning to expand its presence in China through Hawtai Motor Group Ltd but will be using the partnership as a springboard to the world market.


It's not your typical joint venture. It's a cooperation that covers many areas," said Proton chairman Datuk Seri Mohd Nadzmi Mohd Salleh.

"We are looking at the low-cost base of China. We should capitalise on that.

In Malaysia, it's difficult for us to achieve economies of scale because of our low volume."
proton.jpg
Mohd Nadzmi (right) and Syed Zainal Abidin.


"Going to China, we can leverage on its low-cost base, especially on the component industry, which is important because 70% to 75% of the cost of a car comes from its components," he said.

Proton exchanged a memorandum of understanding (MoU) with Hawtai Motor at a roundtable dialogue between Malaysian Prime Minister Datuk Seri Najib Tun Razak and Chinese CEOs here on Friday.

Speaking to Malaysian journalists covering the 8th China-Asean Expo here, Mohd Nadzmi said the MoU would result in an agreement in about 90 days and during the period both parties would study how the cooperation would take place.

"We are talking about product collaboration. Immediately, our (Proton) Saga is ready to come to China, followed by the Exora and also our new model that we will make available for this collaboration with Hawtai," he said.

Proton managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said both parties were still discussing whether to use Proton brand or Hawtai brand in selling cars in China.

"What we look forward to is one day to get our cars produced in China. From China, we can export to other left-hand-drive markets, for example, the Middle East.

"The production cost will be much more competitive. This is one of the big objectives we have.

"We can't rely on Malaysia to export left-hand-drive vehicles. We can use China as a base and because they have a big volume here and our partner will provide us with the facility, knowledge and infrastructure," he said.

Syed Zainal Abidin said Proton products in the C and B segments would complement Hawtai Motor's 4X4 vehicles and D-segment sedans.

Hawtai also has a major plant producing diesel engines for the domestic and export markets.

"So we can also use their diesel technology in our cars to exploit the diesel market, for example, in India," said Syed Zainal.

So, the discussions are not only about products but also on technology transfer."

Hawtai Motor has an annual production capacity of 200,000 vehicles, 300,000 engines and 300,000 auto transmissions.

As for the China market, Syed Zainal said Proton was targeting sales of 50,000 to 100,000 per year and for every unit, Proton would receive revenue whether in terms of components or sales or royalties for the technology transferred.

He also said Proton would not be sourcing parts from China for its Malaysian operations.

"Our priority to support our local vendors."

On Youngman Automobile Group,Syed Zainal Abidin said: "Our relationship with Hawtai is complementing our existing relationship with Youngman. We will continue to support Youngman based on our current business arrangement,"

"Youngman is a straight forward licensing agreement. Hawtai is a different arrangement altogether ... different platform, so there is no conflict of relationship with Youngman," he added.
-Bernama

Car production bases to remain in Thailand despite floods

 

(picture source AFP)

BANGKOK: Despite the floods, car makers will not shift their production bases from Thailand but will only suspend production due to the shortage of auto parts, Thai News Agency (TNA) reported.


Piangjai Kaewsuwan, president of the Thai Automotive Industry Association, said on Thursday although industrial estates in Ayutthaya province were flooded and automobile and auto parts manufacturers affected, the floods should not prompt car-making companies to move their production bases from Thailand because it was a temporary natural disaster.

Piangjai, however, said she expected the supply of auto parts to drop by 10-20 percent.

She added that the Thai automotive industry should take at least three months to recover and that the actual automobile production should reach at least 1.5 million units this year instead of the annual production target of 1.8 million vehicles.

Toyota, Ford, Nissan and Isuzu companies have so far suspended their production for two days to assess the situation, saying they may source auto parts from China and India instead.

Meanwhile, Anuparp Tadpitakkul, state affairs director of Ford Operations (Thailand) Co, said the company suspended its production for two days to examine its stocks of parts as seven plants were affected.

However, he said he did not think the floods will have an impact on the long-term investment of the company in Thailand.

Some 10 Malaysian companies have been found affected by the severe flooding.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said most of them were involved in the automotive and electrical and electronic sectors.

"Those who are affected operate in the flooded Ban Wa, Rojana and Navanakorn industrial parks," he told reporters after the ministry's monthly assembly in Kuala Lumpur today.

The Thai News Agency reported Deputy Prime Minister Kittirat Na-Ranong as saying that the ongoing flood crisis could reduce the country's GDP growth by at least 0.6-0.9 per cent due to expanding damage to its farm and industrial sectors.

 -Bernama(Photo by AFP)

Budget 2012 Highlights

October 07, 2011 19:36 PM

2012 Budget Highlights

(Highlighted in BLUE is Automotive industry related issues)

(Highlights in RED is MY OPINION!)

KUALA LUMPUR: Highlights of Budget 2012 tabled by Prime Minister Datuk Seri Najib Tun Razak in Parliament Friday.
- Last year our FDI growth was the strongest in Asia and in the first 6 months of this year have already reached RM21.2bil
- In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic investment
- GDP in the first 6 months of 2011 was 4.4%, driven by strong domestic consumption
- In 2011, the economy is forecast to grow by 5-5.5%
- Private and public investment are forecast to increase by 15.9% and 7%, supported by foreign investment, the ETP and 10MP
- In 2012, the service sector is expected to grow 6.5%, the construction sector 7% and GDP is forecast to be between 5 and 6%
- Budget 2012 allocates RM232.8bil for Government plans, including RM181.6bil for management and RM51.2bil for development (181.6billion for Management!!!)
- RM29.8bil has been allocated for investment in infrastructure, industrial and rural development
- RM13.6bil has been allocated for the social sector, including education and training, welfare, housing and community development
- Total revenue for 2012 is forecast to increase 1.9% to RM186.9bil and the deficit to decrease to 4.7% of GDP from 5.4% in 2011
- The theme for Budget 2012 is “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation” (We'll see)
- We will focus on accelerating investment and further liberalise 17 services sub-sectors, in places enabling 100% foreign equity.

- RP2 will be implemented in 2012, and it will be allocated RM98.4bil, to be split evenly between 2012 & 2013

- RP2 main projects will include the East Coast Highway from Jabor to Terengganu and road upgrades from Kota Marudu to Ranau
- RM18bil of the RM20bil PPP Facilitation Fund will be used for high impact projects, with RM2 billion for bumiputera entrepreneurs
- In 2012, the Government will allocate RM978mil to accelerate the development in five regional corridors
- The Treasury Management Centre will be established and offer incentives to develop M'sia as a competitive financial centre

- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms
- Income tax exemptions for non-ringgit sukuk issuance and transactions will be extended for another 3 years
- To promote the development of Exchange Traded Funds products I-VCAP will provide RM200mil for Shariah-compliant ETFs
- Felda GVH will be listed on Bursa Malaysia by mid-2012 to raise funds for the company to become a global conglomerate. Felda settlers are expected to receive a windfall, and the amount will be announced before listing
- A RM2bil shariah-compliant SME Financing Fund managed by selected Islamic banks will be established in 2012
- A RM100mil SME Revitalisation Fund offering loans up to a maximum of RM1mil for entrepreneurs will be available from Jan 2012

- Full exemption of import duty and excise duty on hybrid cars and electric cars will continue to be given until 2013

- To promote tourism, the Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420mil

- The real property gains tax will be reviewed so it doesn't jeopardise the ability of low- and middle-income groups to buy homes

- The Malaysia Healthcare Travel Council will be privatised to promote and develop Malaysia as a healthcare destination
- Budget focuses on developing human capital, creativity and innovation and 2012 will be the National Innovation Movement year
- The Govt has allocated RM100mil promote innovation including the 1Malaysia Award (C1PTA) for innovative student inventions
- To enable SMEs to commercialise research products a Commercialisation Innovation Fund totalling RM500mil will be established
- RM50.2bil will be allocated to the education sector so that it can continue to develop talented, creative and innovative people (WOW! RM50.2billion!!!)
- RM1bil will be provided through a special fund for the construction, improvement and maintenance of schools
- We will abolish payments for primary and secondary education, making these free for the first time in our history
- Private schools registered with the Education Ministry will be given incentives including an Investment Tax Allowance
- The Govt will give tax exemption for contributions to educational institutions and all places of worship
- To encourage private sector human capital development incentives including a double deduction on scholarships will be offered
- Budget 2012 introduces a Rural Transformation Programme, so that rural areas can attract private investment and create employment

- RM5bil to develop rural infrastructure, including RM1.8bil to the Rural Road Programme & Village-Link Road Project

- RM500mil to expand the programme to supply clean water to the rural community in Sabah
- RM400mil to upgrade the water supply infrastructure in selected Felda areas
- To provide greater access to bank services for the rural population, Bank Simpanan Nasional will appoint agents in rural areas
- RM90mil for the Orang Asli for basic necessities, including the expansion of the clean water supply project. For the Orang Asli affected by the landslides at Sungai Ruil, RM20mil is provided for their relocation to new homes
- 600,000 Govt pensioners will benefit from an additional annual pension increment of 2%
- Civil servants get pay rise between RM80 to RM320
- Govt will extend the compulsory retirement age from 58 to 60 years old to optimise civil servants' contribution
- Civil servants will be offered tuition fee assistance for part-time studies, including 5,000 masters and 500 doctoral scholarships
- A special programme will be introduced for 175,000 army personnel who are not eligible for pensions
- RM3,000 will be given to ex-members of the special constable and auxiliary police as well as widows and widowers
- The Govt is mindful of the plight of the rakyat due to rising food prices and will take measures to address this
- The National Agro-Food Policy 2011-2020 will be launched and RM1.1bil allocated for the development of the agriculture sector
- In the spirit of “People First,” all subsidies, incentives and assistance totalling RM33.2bil will be continued
- 500,000 will benefit from KAR1SMA, which provides assistance to poor senior citizens and children and disabled people
- My First Home Scheme will be expanded to increase the limit of house prices from a maximum of RM220,000 to RM400,000
- Govt will identify areas in the vicinity of MRT, LRT and other public transport to be developed by PR1MA
- Govt will continue to implement the Program Perumahan Rakyat by building 75,000 units of affordable houses
- Govt will establish the Special Housing Fund for Fishermen to build and refurbish houses
- Healthcare will be allocated RM15bil operating expenditure and RM1.8bil development expenditure (Another potential leakage)
- Hospitals will be upgraded and constructed as well 81 rural health clinics upgraded and 50 new 1Malaysia clinics launched
- Hospital Kuala Lumpur - the oldest in Malaysia - will be upgraded to be the country's premier hospital
- Skim Amanah Rakyat (SARA) 1Malaysia will benefit 100,000 households with income below RM3,000 per month

- To assist taxi owners facing increased operating costs, measures will be introduced including tax exemptions on taxi purchases

- The National Legal Aid Foundation will ensure that every individual who is charged in court will be given free legal aid
- To assist the homeless, the Govt established a social assistance centre known as Anjung Singgah
- A training allocation of RM10mil will be provided for women to develop leadership and managerial skills
- To prevent cervical cancer, the Government will provide free Human Papilloma Virus immunisation nationwide
- MyCreative Venture Capital with an initial fund of RM200mil to be established
- RM15mil will be allocated to build 150 futsal courts to achieve the “One Court for One Mukim” target (This is insane.  RM100,000 per futsal court.  Wonder which Crony get this project?)
- To ensure the welfare of retirees measures including a tax relief on Private Retirement Schemes contributions are introduced
- Senior citizens aged 60 years & above will be exempted from outpatient registration fees in Govt hospitals & health clinics
- One-off assistance of RM500 to households with a monthly income of RM3,000 and below will be provided
- For those in private sector earning RM5000 and below, employers' EPF contribution will increase from 12% to 13%
- Book voucher worth RM200 will be given to Malaysian students in all private and public institutions of higher learning
- Civil servants will be given an additional bonus of half-month salary and pensioners RM500.

END OF SOURCE... 

For more info about this "BIASED" Budget:  Surf to:

2012 Budget Business Highlights:
http://www.bernama.com/bernama/v5/newsbusiness.php?id=618522

Why BIASED?  Here's my highlight:

* Tax deduction on expenses incurred for sukuk wakala to be given for a 3-year period from 2012. (WHAT IS SUKUK WAKALA? Islamic Bonds - thanks Google)

* Income tax exemption for non-ringgit sukuk issuance and transaction extended for another 3 years until 2014.

* Valuecap Sdn Bhd to provide RM200 million as seed monies for syariah-compliant Exchange Traded Funds

* Felda Global Ventures Holding to be listed on Bursa Malaysia by mid-2012 to raise funds and emerge as a global conglomerate
* A syariah-compliant SME Financing Fund totalling RM2 billion to be managed by selected Islamic banks by 2012

* Syariah-compliant Commercialisation Innovation Fund totalling RM500 million to be set up

* RM200 million allocated for the development of Bumiputera entrepreneurs and contractors through the Ministry of Rural and Regional Development

* Government proposes allocation for TEKUN to be increased to RM300 million

* Amanah Ikhtiar Malaysia will provide RM2.1 billion for micro financing to entrepreneurs, particularly for women. From this, RM100 million will be for Malaysian Indian entrepreneurs and another RM100 million for Chinese entrepreneurs (See.  >90% allocated to Bumis. How Unfair)

THAT"S ALL FOLKS! Thanks for having the time and patience to read this blog entry.

Cuba lifts 50-year ban on buying and selling cars

HAVANA: Cuba has authorised auto sales among individuals easing a 50-year-old ban that has helped make the island a living museum of vintage cars.

Until now, Cubans have only been permitted to sell each other vehicles built before the country's 1959 revolution, which has given long life to the US chrome and fin-tail antiques that swarmed pre-revolutionary Havana.

The new regulations, published in the Official Gazette, had been expected as part of a series of reforms being undertaken by President Raul Castro to ease state controls on the economy and encourage some forms of small-scale private enterprise.

The regulations provide for "the transfer of ownership of vehicles for purchase-sale or donation among Cubans living on the island or foreigners who are residents of Cuba."

Ordinary Cubans will still be prevented from buying new cars, which are restricted under the new rules to buyers with dollars or convertible pesos engaged in "work on assignment by the state or in its interest".

But tens of thousands of Cubans who were allowed to buy Soviet-made vehicles through their workplace before 1990 will now be able to sell them legally.

Also on the market will be newer imports that the government has allowed artists, athletes and doctors working in overseas missions in places like Venezuela to bring home with them.

Foreigners living in Cuba will be allowed to buy or import up to two vehicles under the new rules.

Cubans who emigrate - some 38,000 a year - will now be allowed to sell their vehicles or transfer ownership of them to family members.

For retired musician Lazaro Gonzalez, the new measures provide the long-awaited opportunity for him to buy a Russian Lada from his sister, who works in Chile.

"This (transaction) is something normal, which never should have been banned," Gonzalez said. "It's another one of these absurd prohibitions that Raul Castro has removed since coming to power."

Allowing car purchases and sales is seen as among the most important of some 300 reforms adopted in April by the Communist Party Congress, which aimed at keeping the centrally planned system from collapse but stopped short of embracing a market-led economy.

Other measures expected to shake up the lives of ordinary Cubans included introducing the right to buy or sell homes or receive a bank loan.

Most Cubans own their homes and do not pay taxes but have only been allowed to exchange, not sell them until now. Details on the home sales measure should be published before the end of the year, sources said. – Bernama-NNN-Mercopress

Govt reviewing National Automotive Policy

Friday, September 23, 2011

Govt reviewing National Automotive Policy
Friday, September 23, 2011

GURUN: The Government is reviewing the National Automotive Policy (NAP) to meet the needs of the customers and industry players, locally and overseas.

Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir said the Government was talking with industry players to obtain feedback on how to create a better environment to boost the growth of the industry.

"The industry is very important and it has recorded high earnings for the country.

"I'm confident that Budget 2012 will give more emphasis to the sector considering that it is contributing to the economic growth apart from creating high-income jobs for Malaysians."

Mukhriz said this to reporters after Naza Automotive Manufacturing's celebration of the production of its 150,000th unit here Thursday.

He said the local car sector has grown tremendously compared to the neighbouring countries in which Malaysia is not only an assembler but also a manufacturer.
 -Bernama

KL roads almost deserted

KL roads almost deserted

KUALA LUMPUR: The city is gradually becoming deserted as more people leave for their hometowns to celebrate Aidilfitri, which is expected to fall tomorrow.

It was a very different scene of smooth traffic compared to the snarled conditions of the past two days.

The Sungai Besi Toll, North-South Highway and Jalan Duta Toll saw fewer vehicles today.

A private sector worker, Liyana Yusoff, 26, said traffic was smoother this year compared to previous years.

"I am on the way to Melaka from Bandar Tun Razak and find it is not as bad as it was during the weekend," she said.

Another worker, Maisara Ahmad, 42, said she chose to go back to her hometown in Taiping today as there was less traffic and she was confident it would be a smoother ride on the highways.

Civil servant Mazlan Abdul Hamid, 33, said he checked the PLUS Expressways Bhd schedule last night before leaving the house earlier this afternoon.

"My number plate ends with an odd number and that means I can travel this afternoon," he said.

Meanwhile, a scan of the Pudu Sentral area saw fewer people at ticket counters.

A Kesatuan Ekspres ticket seller who identified herself as Sharifah, 41, said bus ticket sales were lower this year and there was only one bus to the north tomorrow while none were scheduled to the east coast.

It was a time of joy for student Nurul Syazwa Azmi, 23, who said last-minute travelling was fun because she would have a smooth journey and reach her family home in Sungai Petani, Kedah, just in time for the start of the festivities.

-Bernama

Auto players unhappy with Hire-Purchase Act

Auto players unhappy with Amended Hire-purchase Act

Auto dealers are doubtful whether the targeted 2.1 per cent increase in total vehicles sales to 618,000 units this year can be achieved, no thanks to the amended Hire-Purchase Act 1967, which although aimed at protecting the rights of consumers, was dampening bookings.

Several auto companies have complained that their daily bookings mainly for cars had declined by an average of 20-30 per cent since the amended Act came into effect on June 15.

Local automotive players, while appreciating the amended Act which upheld the rights and interest of consumers, are already feeling the pinch of flat sales which they expect will continue for the next few months due to new requirements under the Act.

At least three auto industry players Proton, UMW Toyota and Edaran Tan Chong, with a combined market share exceeding 50 per cent of the total industry volume (TIV), said they might revise the company's initial sales targets.

The amended Act, which came into effect a month ago, has resulted in cash flow problems for dealers, as the maximum booking fee of only one per cent of the total selling price of the car imposed on buyers, was too small compared with the previous requirement of 10 per cent.

To make matters worst, if the deal falls through, the buyer gets back 90 per cent of the booking fee, leaving very little for the dealer.

The Executive Director of Edaran Tan Chong Motor Sdn Bhd Datuk Ang Bon Beng said customers can change their mind to purchase a car even at the eleventh hour in view of the low booking fee.

In other words, there was no commitment to the deal, he said, adding that the burden of this uncommitted relationship has to be borne by car dealers or the principals of automotive companies.

Besides, customers only need to sign the purchase agreement when the car is produced and shown to the customer and if the customer opts not to buy the car, dealers again tend to lose out.

If the cars are not sold, then it causes disruptions to the supply chain as orders were already made for the cars.

As a result, car dealers were now recording a 20-30 per cent decline in bookings per day owing to the longer process required to get a car under the amended Act as buyers now have to deal directly with the bank which means increased documentation and processes.

Previously, a dealer would be able to handle the entire documentation and buying process of a vehicle. "We (Tan Chong) used to record about 200 bookings per day, but now it has dwindled to about 100 bookings only," Ang said.

Ismet

Moreover, due to the low booking fee, car dealers could not distinguish between genuine and phantom buyers, as many opted to switch to other cars at the last minute.

Dealers also complained a buyer could place phantom bookings at several different car dealerships without paying booking fees, resulting in a waste of loan application resources and inefficiencies for banks and car dealers.

President of UMW Toyota Motor Sdn Bhd, Ismet Suki, while concurring that the intention of the government to ensure consumers were not cheated and misled was noble and accepted by all industry players, however, felt there were weaknesses.

"The act is flipped, from the automotive perspective, as many segments are disrupted, namely manufacturing, production and the (vehicle) ordering system," he said.

Ismet said the longer documentation and paperwork process between banks, car dealers and customers have actually slowed down the delivery system as the process of finalising a vehicle purchase agreement took an extra 3-4 days.

The manufacturer and marketer of Toyota marques as well as the distributor of Lexus-brand vehicles also said that the main issue now was not selling the cars, but taking the risk of producing cars according to the order bank, without knowing whether the orders were genuine or would be met.

Proton Edar Sdn Bhd General Manager for Marketing Sidik Abdul Hamid said as far as the national car maker was concerned, the reaction to the amended Act from consumers was positive.

However, he said, the company was looking at revising downwards Proton's initial sales target of 173,000 cars as the number one automotive player has registered a 30 per cent drop in bookings since June 15.

Against such problems faced by car sellers, the government had last month promised to resolve their grouses over the implementation of the Act.

 -Bernama 

Related: 

Government open to reviewing act

Public response to new Myvi overwhelming, says Perodua

Bernama: Monday, June 27, 2011 

AYER KEROH: Perodua says the public response to its new Myvi has been "overwhelming", with 12,000 bookings received.

"As of June 24, we have received bookings for about 12,000 MyVi units and we expect, by end-July, for about 2,000-3,000 new Myvi cars to be on road," said Perodua managing director Datuk Aminar Rashid Salleh.

He said the company was maintaining its sales target at 195,000 units and the new MyVi would account for 50 per cent of that sales.

On another matter, Aminar said Perodua will open its first sales, service and spare-parts (3S) centre in Malacca next year.

He said the company was finalising a land agreement with the state to locate the centre in Ayer Keroh.

"Previously, the state offered us a piece of land at Autocity, Malacca, but since the place is still new, we don't think it suits our interest.

"Therefore, we are selecting a place somewhere nearby "Taman Buaya", Ayer Keroh, as a major hypermarket is expected to be built here. We believe it can attract a crowd," he told a media briefing on the sidelines of the "Perodua Eco-Challenge 2011", here on Saturday.

He, however, declined to reveal the cost of the 3S centre expected to start operations by the end of next year.

To date, Perodua operates 16 3S centres nationwide.

 -Bernama 

Foreign vehicles to be barred from filling up on RON95 petrol and NGV

 Tuesday, June 14, 2011 9:05 PM

KUALA LUMPUR: RON95 petrol and NGV fuel will be banned from being sold to owners of foreign-registered vehicles from tomorrow, the Ministry of Domestic Trade, Cooperatives and Consumerism announced Tuesday.

RON95 petrol would however be allowed to be sold to those having foreign-registered motorcycles as an exception.

Following the move, the requirement to produce Mykad by Malaysians using foreign-registered vehicles for buying RON95 petrol at all petrol stations throughout the country had been withdrawn, the ministry said in a statement here.

On Aug 1 last year, a directive to ban sales of RON95 petrol to foreign-registered vehicles nationwide was imposed with the exception given to Malaysians who could produce the Mykad for verification.

The ministry in the statement clarified that the government had received feedback of leakages due to abuse of of the Mykad for purchasing RON95 petrol.

According to the ministry, petrol station operators at border areas had also complained of difficulties in controlling and ensuring the directive on the petrol ban was fully complied with.

"On this issue, the government is of the view that the ban on all foreign-registered vehicles from buying RON95 petrol and the withdrawal of the condition that allowed purchase of RON95 petrol on producing the Mykad throughout the country with the exception of motorcycles, is reasonable," the ministry said.

The ministry clarified that the ban also covered NGV fuel following the discovery that 311,000 litres of NGV fuel were sold to foreign registered vehicles each year.

"At the rate of the current subsidy, the NGV fuel subsidy enjoyed by foreigners amounted to RM360,000 each year," the statement added.
 -Bernama

Govt suspends plans to scrap old cars

 KUALA LUMPUR: The government does not plan to dispose of all vehicles over 15 years old because it does not yet have a suitable mechanism for doing so, Deputy Transport Minister Jelaing Mersat said.

The government would also have to get the views of non-governmental organisations and the public before disposal of all old vehicles could be enforced, he told the Dewan Negara.

Although use of these old vehicles was allowed, the road transport department and police were ensuring that they were road-worthy, he said when winding the debate on the motion to thank Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin for his royal address on Tuesday.


 -Bernama

Six men arrested, stolen car and lorry parts seized

KUALA LUMPUR: Police have crippled a syndicate specialising in stealing cars, stripping their parts, storing and reselling them as spare parts in the Klang valley, Malacca and Johor, after arresting six men in two separate operations.

Police also recovered 1,603 components and engines worth a staggering RM5mil during the raid while seven vehicles were also detained.

Bukit Aman CID Director Datuk Seri Mohd Bakri Mohd Zinin said during the first raid on April 8, two men in their 30s were arrested after inspecting three stores in Batu Berendam and Durian Tunggal, Malacca.

"Six cars reported stolen in the Klang valley and a lorry reported stolen in Johor were also seized," he told reporters here Monday.

He said the second raid was carried out a day later in Johor and involved a store, two shops selling spare parts and two houses while four men in their 30s were detained.

Mohd Bakri said with the arrests, police would be able to solve 250 car theft cases involving Waja, Wira, Iswara and Hicom lorries.

He said the modus operandi of the syndicate was to steal cars or lorries and hide them at stores before stripping them of their parts before selling the parts at a lower price.
 -Bernama

Monday, April 11, 2011

GM Korea says goodbye to Daewoo, hello to Chevrolet

GM Korea says goodbye to Daewoo, hello to Chevrolet


SEOUL: GM Korea Co, the South Korean unit of US automaker General Motors Co, will officially launch the Chevrolet brand in South Korea this week, saying goodbye to Daewoo, a name that has endured in South Korea for the past 28 years, Yonhap News Agency reported the company as saying Monday.



The name of the company will officially be changed to GM Korea from GM Daewoo also from Tuesday, it added.


"The change of the company name is an evolution from a company that does export sales and also domestic sales. We are a global company that works in Korea. This is a revolutionary pivot for us and an imperative decision," GM Korea president and CEO Mike Arcamone had said, introducing the new company name and the Chevrolet brand for the first time in January.

GM Korea has already introduced three Chevrolet vehicles in South Korea - the multi-purpose vehicle Orlando, small passenger car Aveo and Chevrolet's iconic sports car the Camaro - with their deliveries scheduled to begin late next month.

The company plans to introduce an additional five Chevrolet vehicles here this year under what Arcamone has called an "unprecedentedly aggressive launch programme" designed to boost the company's domestic sales.

"This is a good change. It is in the best interest of customers, our company, its employees, shareholders, dealers, suppliers and indeed the people of Korea," he had said.

All new makeovers of former GM Daewoo cars will also come with the Chevrolet brand.
The only immediate concern for GM Korea and its officials is that many local customers, unfamiliar with the Chevrolet brand, may mistake their new vehicles as products by an entirely different or smaller manufacturer as, in South Korea, the name of a vehicle brand is almost without fail the name of its maker, a GM Korea official noted.


To prevent such confusion, the company is planning a massive launch event here Tuesday when it will also announce new marketing strategies that have "never been seen before" in South Korea for new Chevrolet vehicles, the official said.


GM Korea is struggling to increase its market share in South Korea to a double-digit number as it failed again to do so in 2010, though only by 0.5 percentage point.


The company currently is the third-largest of five automakers in South Korea, where over 80 per cent of the market is controlled by top automaker Hyundai Motor Co and its affiliate Kia Motors Corp.

-Bernama

Government To Maintain Present RON 95 And Diesel Prices

Government To Maintain Present RON 95 And Diesel Prices

KUALA LUMPUR, Feb 24 (Bernama) -- The government will maintain the current fuel price for RON 95 at RM1.90 and diesel at RM1.80 despite the escalating global oil price, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said on Thursday.

It will instead discuss with the Finance Ministry for alternatives to cushion the increase, he said.

"The government will retain current prices and look at other options or alternatives even if the government's load increases.

"So far the situation can be handled without raising the price of RON 95 and diesel," the minister told reporters after announcing Bank Rakyat's annual financial results here.

He said the budget allocated for subsidy this year was RM10.3 billion and if the price trend continued, this could reach up to RM14 billion.

The RM10.3 billion subsidy covers petroleum, RON 95, diesel, LPG gas, sugar, rice and cooking oil.

Last December, the prices of RON 95 and diesel price were each increased five sen to RM1.90 and RM1.80 per litre respectively.

On the alternatives being looked at, he said there would be a review on the petrol and diesel quotas received by certain parties.

Asked when both ministries would finalise the discussion, he said decisions would be made as soon as possible.

"It won't take long. The more time is taken, the higher the amount of subsidy the government would have to bear," he added.

He said as an importer of food products, the country would also have to bear the increase in the prices of imported food products.

Commenting on whether prices for other subsidised products would be increased since the fuel price would not be hiked, Ismail Sabri said the government was not looking to increase the prices of other subsidised products.

"Effective Feb 1, subsidy has been stopped for all factories producing food products and drinks using 500 metric tonnes of sugar a month.

"The government would be able to save RM128 million," he said.

-- BERNAMA

Forget merger, think Proton-Perodua alliance

Forget merger, think Proton-Perodua alliance

SOURCE: Star Motoring  via BERNAMA

In fact, they are already cooperating in a limited way by having common parts vendors.

Currently, Perodua and Proton share 91 vendors. Even now, Perodua makes Campro cylinder heads for Proton.


Car industry analysts believe that both companies could also cooperate in logistics support like transportation of new cars or maybe there could be outlets that could sell two national brands.

What needs to be done is to take these linkages to a higher level, which can be further helped with the consolidation of the auto vendors in the country.

This is where the Ministry of International Trade and Industry can help and show the way by facilitating and consolidating local vendors.

They have been consolidated from 500 to about 250 now with nearly 100 shared by Proton and Perodua.

Pushing for higher quality and competitiveness will also help further develop competitive vendors for auto firms not only for the country also the region.

It must be remembered that the auto vendors do not only service Proton and Perodua, but the entire automotive industry in the country.

Also, it is only fair that Perodua be given the chance to implement its five-year road map premised on improving quality, costs and efficiency to stay competitive as a regional auto player.

It plans to reduce costs through efficiency, a move seen as crucial to keep the prices of its new cars low.

Otherwise, the company will be forced to raise car prices to achieve returns on investment since a sizeable sum is spent for every new model and maintaining brisk sales for Perodua cars.

It is also to make Perodua competitive in the post-2015 scenario, and in this regard, vendors have to seize opportunities and see the big picture and not just be vendors to Perodua and Proton alone.

Perodua's long-term plans is wrapped around a green and economical technology called metal-free liquid feed cell system.

There could also be interest from new vendors, foreign ones, who could own up to 100% equity, and this means that local vendors would be left out if they didn't shore up their capability, efficiency and quality as Perodua and Proton may resort to cheaper but quality vendors to stay competitive.

To keep strong interest in the brand and stay ahead in terms of market share, Perodua is expected to roll out the replacement model for the Myvi later this year although orders for the existing model, introduced five years ago, is still going strong.

For 2010 Perodua sold some 188,700 cars with an industry market share of 31.2%.

The Myvi is the best selling model with nearly 78,000 units sold in 2010 and is the highest selling model for five years running.

Analysts say there will be major enhancements in the new model compared to the current Myvi.

There will also be a special edition Alza, which will pay tribute to former Prime Minister Tun Dr Mahathir Mohamad as the man who jump-started the country's automotive industry.

Some of the proceeds will go to the Perdana Leadership Foundation as Perodua's Corporate Social Responsibility.

Under its five-year plan to remain a viable auto player, Perodua has successfully convinced Daihatsu to locate an electronic automotive transmission plant in Serendah this year, which will likely entail an investment of between RM200mil-RM250mil.

Perodua sees this project as one where Proton can also come in to collaborate and help consolidate the local auto industry in terms of upskilling and technical know-how.

Perodua also aims to double its engine components export business from about RM25mil a year currently to RM50mil in three years' time.

This will be done through increasing the export volume to existing countries such as Indonesia, Pakistan and Japan as well as looking for new markets.

On the export of completely-built-up units, Thailand and South Africa were quoted as countries Perodua is keen to explore.

This is an area where local vendors could reap rewards if they are competitive as their markets are not limited to Malaysia but where Perodua and Daihatsu have a strong presence.

The government had clearly pointed out that it wanted to see the two manufacturers emerging as highly competitive entities able to stand on their own in a post-liberalisation period under the Asean Free Trade Area as well as through the World Trade Organisation.

Against such a backdrop, it is best both companies endeavour to raise their level of competitiveness to prepare for post-liberalisation period under the National Automotive Policy and help Malaysia emerge as a regional auto hub for Asean as well export national cars.

But exporting national cars to Asean can be sticky as the technical partners might not be too keen in seeing Malaysian cars compete with their cars in Asean.

In addition, it takes a lot of effort and expense to develop one's own brand as Perodua had found in some markets.

A more acceptable arrangement could be that the national car maker produce the cars to be sold under the technical partner's brand name.

Although, it might not amount to selling the national car overseas, foreign exchange earnings will still accrue to the country even if they are sold under a different name.

Analysts said that Perodua has indicated to the ministry that it has the ability to undertake this on behalf of Daihatsu in markets that the latter may have diminished interest.

At the end of the day, it means that Perodua can reap better economies of scale and bring in valuable foreign exchange by being a contract manufacturer for its principal but the process can also help the local auto industry to flourish in that local auto components will be used.


It is for this reason Perodua is pushing local vendors to upgrade their quality, efficiency and productivity so that they can stay relevant under more competitive conditions post-liberalisation.

Another proposal is for Perodua to both export the Perodua and Daihatsu brands but for different models in markets where Perodua has already built up a strong brand presence.

There is no denying that one of the difficulties towards a merger involving equity holdings as Perodua's technical partner, Daihatsu, may not see a strong business case to work with a different entity with different technical partners and philosophies.

That aside, there are many areas that Proton and Perodua can work on and work together in moving Malaysia's auto industry up the value chain and entrenching it as an industry to be reckoned with regionally and globally.


 -Bernam/The Star

'Proton-Perodua merger a distant possibility'

The merger between Proton and Perodua is still a distant possibility, given the limited synergy and discomfort from Perodua's stakeholders, says MIDF Research.

On Tuesday, Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed said, the government would not force Proton and Perodua to merge, and any such move would be based on mutual agreement between the stakeholders.

According to MIDF Research, should the merger go through, Proton could resolve its excess capacity issues, streamline purchases with vendors, share research and development capabilities.

It would also enable Proton to spread its wings to the networks and good affiliates of Perodua, UMW and Daihatsu.

MIDF Research also contends that Perodua is less keen on a merger as its forte was in compact cars that would not use the same platform as Proton.

Both its affiliates also appear less keen on the merger as Proton could regain its throne in the market,lost to Perodua since 2006.

"There are some positive things happening for Proton such as the India ventures, but in the overall scheme of things, the company should trade sideways in the foreseeable future," the research house said in a research note.

MIDF Research has also set the new target price for Proton at RM4.80, 40 sen lower compared with its previous target of RM5.20, due to a series of negative newsflow.

The newsflow includes the termination of the Volkswagen talks, concerns over the RM2.4 billion capex needed for the Lotus turnaround plan and the reduced hope of a merger with Perodua.

At 12.10pm, Proton's share price declined one sen to RM4.49.

-- BERNAMA

Read more: 'Proton-Perodua merger a distant possibility' http://www.btimes.com.my/articles/20110126124755/Article/#ixzz1CDXybpZr

RELATED ARTICLE:

'Proton-Perodua merger won't be forced' 

http://www.btimes.com.my/articles/20110125132253/Article/

 

That's all folks, thanks for having the time and patience to read this blog entry.

Record 600,000 vehicles join the traffic

Record 600,000 vehicles join the traffic


BERNAMA/The Star Motoring: Wednesday, January 19, 2011 4:10 PM

PETALING JAYA:  Motor vehicle sales breached an all-time high of 605,156 units, up 12.7 per cent or 68,251 units last year vis-a-vis 536,905 units in 2009, said Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad.

The 2010 Total Industry Volume (TIV) surpassed the 2009 record of 552,316 units achieved in 2005, she told reporters after releasing the 2010 production and sales figures and outlook for 2011.

She said the industry volume is expected to grow this year by 2.1 per cent or 1,438 units to 618,000 units from 605,156 units last year.

"I must say, bearing in mind that we have a population of 27 million people, and in terms of motorisation rate we have a ratio of every four person to one car which is the same as a developed country although we are still a developing nation.

"There will be a multiplier effect from the 10th Malaysia Plan and Economic Transformation Programme's projects which would likely give a further boost to the domestic economy and create greater demand for new vehicles," she said.

However, she predicted that sales would be flat in later years.

"Minimal growth is expected to happen for the next few years and I don't think a double-digit growth like last year will happen.

"The country is already very high in terms of car ownership and the forecast has taken into account the previous revamp of the repayment period five years ago.

"Finance companies have changed the repayment period from five years to nine years, and by 2011, consumers will still have four more years of their loan to pay for their five-year-old vehicle, and we have to take into account the financial standing of consumers whether they can afford to trade in and get a new car," she said.

Aishah said the association expects the TIV to grow by one per cent to 624,000 units in 2012, 2013 to grow by 1.1 per cent to 631,000 and subsequently 2014 to grow by 1.2 per cent to 639,000 units and 2015 with 1.3 per cent growth to 647,000 units.

Frost & Sullivan, in its annual automotive outlook briefing recently, was more optimistic than MAA, predicting a higher TIV of 623,000 units this year, driven by a moderate economic outlook and additional new vehicle models which would attract consumers.

 -Bernama / The Star Online.

SOURCE:
http://www.star-motoring.com/News/2011/Over-600,000-cars-sold,-that-s-a-record-high.aspx

END OF ARTICLE...

That's all folks, thanks for having the time and patience to read this blog entry.

VW Polo is Wheels Mag 'Car of the Year' - again

Polo is 'Car of the Year' - again

 Wednesday, January 19, 2011 1:41 PM

Wheels Magazine's 'Car of the Year' award for a second year running, the Australian Associated Press reports.

The VW Polo has followed the VW Golf to small-car fame, winning over judges with its "beautiful" engineering.

Wheels Magazine editor, Bill Thomas, said Nissan's Micra and the Renault Megane, both small cars, joined the Polo as top three finalists for the award.

Thomas said it was not surprising to see small cars taking the limelight.

"It's a fair indication of the way trends are going in car buying in Australia. Small car sales have gone up by 55 per cent.

"It means that a third of cars in Australia now are small cars," he said.

The Polo sells for about A$20,000 (RM60,000).

Thomas said the finalist nod was a first for the Nissan Micra, impressing judges with a complete overhaul.

"The Nissan Micra is probably the best car ever sold for under A$13,000 (RM39,000)  in Australia. The features and extras make it excellent value,"

Among the more expensive small cars, the Renault Megane hot-hatch sells for about A$42,000 (RM126,000).
 -Bernama

Airbags compulsory for all vehicles from 2012

Airbags compulsory for all vehicles from 2012
BERNAMA January 21, 2011

Research shows that most fatal accidents involved front passengers who did not use the safety belt and did not have an airbag.

RANTAU PANJANG: All vehicles, except four-wheel drives, will be required to be fitted with airbags from next year, Transport Minister Kong Cho Ha said today.

He said the measure was to reduce risks of death in road accidents.

The government was particularly concerned with fatal accidents due to inadequate safety equipment, he told reporters here after launching the road safety campaign in conjunction with the coming Chinese New Year.

He cited research done by the Malaysian Institute of Road Safety which found that most fatal accidents involved front passengers who did not use the safety belt and did not have an airbag.

Kong said his ministry would ensure that vehicles manufactured in the country and the national car were equipped with safety airbags before the new regulation was enforced.

He said there would be no problem with imported vehicles as most of them came equipped with safety bags.

– BernamaTr

BERNAMA: Government To Help Bumiputera Approved Permit (AP) holders

BERNAMA AUTO NEWS: Government To Help Bumi Businessmen Hit By Stoppage In AP Issuance By 2015 KUALA LUMPUR, Jan 13 (Bernama) -- The government on Thursday assured Bumiputera Approved Permit (AP) holders, who will be affected by the stoppage in AP issuance by 2015, that they will be given assistance under the special fund set from the RM10,000 fee charged for each AP issued. Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir, who gave the assurance, said the government established the fund to help develop Bumiputera entrepreneurs in the automotive industry and related businesses. "We charged RM10,000 for every AP issued to set up the fund and the money will be used to ensure a smooth and orderly shift of Bumiputera entrepreneurs to other business sectors. "By having the fund, we hope to execute the shift orderly and smoothly," he told reporters after officiating at the soft launch of the Muslim World Biz 2011 exhibition. On claims by the Association of Malay Importers and Traders of Motor Vehicles Malaysia (Pekema) that 70,000 workers in the automotive industry would lose their jobs if the AP policy on imported vehicles was enforced by 2015, Mukhriz said they must show proof to the claim. "They need to prove that statement because we have our own figures. We have been helping them for a long time, some about 30 years already. "I think they will benefit greatly from this government policy. At this time, there are many more Bumiputera companies who wished they have the APs enjoyed by the 98 companies (selected by the government). "There are about 160 companies eligible to get APs but the government will stick to the 98 companies and will protect them until 2015," he added. -- BERNAMA

RON97 and kerosene up 10 sen per litre effective today

RON97 and kerosene up 10 sen per litre effective today

UPDATED @ 11:17:28 PM 04-01-2011

SOURCE: Malaysian Insider

January 04, 2011

KUALA LUMPUR, Jan 4 — The prices of RON97 petrol and kerosene will be increased by 10 sen respectively effective midnight, said Petrol Dealers Association of Malaysia (PDAM) president Datuk Hashim Othman.

With the increase, RON97 petrol will cost RM2.40 per litre (previous RM2.30)while kerosene will be sold at RM2.50 per litre.

Hashim, when contacted said that he was informed about the increase by the authorities, tonight.
The government announced on July 16 last year that the price of RON97 will be subjected to a managed float to reflect the price of petrol in the global market.

The last time price of RON97 went up was on Dec 1, 2010 when there was a 15 sen increase.
Today’s increase will however, not affect RON95 petrol that remains at RM1.90 per litre, diesel RM1.80 per litre and LPG RM1.90 per kg.

According to a report today, oil produced by the Organization of the Petroleum Exporting Countries (OPEC) increased to US$89.79 at the start of the week. — Bernama.

My opinion:  

Hey, IT"S NOT EVEN REACHING US$100 mark yet...  Why increase again?  Note that in 2008, it touched US$140+ mark.  WHAT IF IT REACHES its peak again? 

I shudder to think when Oil hits USD140 again. Thats equal to RM3.60 a litre on Ron 97 if on the same scale of movement.

 

Very disappointed...  That's all I can comment...