Proton does not acknowledge the Bumiputera agenda: Pekema

February 13, 2018 | By | Reply More

Grab latest promotion at LAZADA now!

KUALA LUMPUR: The Malaysian Association of Malay Vehicle Importers and Traders (Pekema) said the national carmaker Proton Holdings Bhd did not acknowledge the Bumiputera agenda, following China’s Geely takeover of leadership in Proton management.

PEKEMA president Datuk Zainuddin Abd Rahman said Proton’s new management did not give priority to the Bumiputera agenda under its management and did not state the Bumiputera issue in its response recently.

“We urge the government, especially Ministry of International Trade and Industry (MITI) and Ministry of Finance (MOF) to call on all vendors and sales representatives to hear their immediate problems, especially vendors and bumiputera sales representatives,” he said in a statement today.

Zainuddin said PEKEMA would meet with all Proton Bumiputera sales representatives on February 14 and welcome Geely to join the meeting in Cyberjaya.

“We are hopeful that this collaboration would raise Proton’s brand as the national carmaker for Malaysia.

“We are fully support Geely’s collaborative effort with Proton, which has successfully proven to turnaround Volvo,” he said.

According to news report, Pekema said Proton’s new management under China’s Geely is discriminating against bumiputera distributors.

The measure was made following the new Proton directive for its distributors to upgrade from a 1S centre to 3S (sales, service and spare parts) centre before October this year.

Zainuddin pointed out that the directive pressure was burdening Bumiputera distributors, citing that 85 per cent of the business operators only have 1S centres.

Pekema has called Proton not to push the sales representatives to upgrade their sales centre to 3S within short period of time, although the 3S centre is good for long-term.

However, he said automotive companies should be given ample time to improve their sales, despite the current lacklustre automotive market, before directing them to upgrade to 3S centre.

Based on Perusahaan Otomobil Kedua Sdn Bhd’s (Perodua) achievement last year, Zainuddin said majority of the success was achieved through 1S centre sales representative and also 3S.

“This shows that the 1S concept still can contribute to the success sales of a company, without needing for all sales representatives to be 3S,” he said.

Zainuddin said failing to upgrade to 3S centre, Proton would not allow 1S centre representative be given Geely Boyue’s new sales rights.

Hence, they would not get all the sales incentives of Geely Boyue’s model like 3S centres.

“This is a persecution for the 1S sales representative, which would cause their business dying slowly. It is not a practice in the automotive industry where the 1S sales representative has to buy stock from a 3S sales representative. This is a very strange and unnatural act,” he said.

Responding to Proton’s statement on the depreciating margin form four per cent to three per cent, Zainuddin said it would not help Proton to promote its vehicles, amid lacklustre automotive market.

He said decreasing margins would cause sales representatives to no longer accommodate their high monthly operating costs, especially in the Klang Valley, where premises rental is very high.

“We hope that the Registration After Payment can be continued as it is a lifeline to Proton’s sales representative for the time being.

“As Proton received a soft loan from the government over RM1 billion to continue its operation, Proton needs to appreciate their long-standing and faithful sales representatives at times or in times of trouble.”

FREE RM12.70 credit upon sign up to discover and book amazing travel experiences with Klook.

Category: News

About the Author ()

Leave a Reply