Case Study Proton AutomobilesEssay Preview: Case Study Proton AutomobilesReport this essayThe auto industry in Malaysia is closely linked to the history of Perusahaan Otomobil Nasional Bhd (PROTON). PROTON was incorporated on May 7, 1983 to manufacture, assemble and sell motor vehicles and related products, including accessories, spare parts and-other components. Some researchers like, Sim (1979) and Keat and Li (1998) pointed out obstacles to production efficiency in local motor vehicle assembly operations and also in the marketing of automobiles in Malaysia. This includes diseconomy of scale associated with production oriented to a domestic market of limited size and lack of Customer focus.
The Malaysian government is committed to the safety of all the Malaysian citizens. The Federal Transport Agency set up POLY (Proton). The Bureau/SAL (Secretariat of Transportation and Public Transport) implemented the PRELUDE (proprietary motor vehicle safety and law enforcement agencies), which was adopted in October 1987. A complete version of the PRELUDE can be found over on the Malaysian Transport Agency website (www.portal.pm). As per the law of Malaysia it is obligatory for all passengers to buy the standard motor vehicle of their choice from the Transport for Kuala Lumpur (TPHK) and the National Motor Vehicle Registration Authority (NMMRA) without further compensation. The national registration law makes it obligatory for motor vehicle companies to sell, hire, deliver and manufacture a minimum of 5% of the passenger’s registration price. An official government-sponsored group (Government of Malaysia) promotes the development of the Prelude as a national motor vehicle law for all Malaysia citizens, on behalf of a national government-created motor vehicle safety agency. The BIA has taken part in the national motor vehicle safety program for Malaysia in the context of the ongoing “Jhora National Day” in the National Capital Region (BNR). The BIA has partnered with several national highway authorities in Malaysia, including the Government of Malacca and the National Motor Vehicle Safety Agency (NMSA). In the “Jhora National Day” the BIA also works with Malaysian cities, universities & institutes.
Malaysia is a democracy where many citizens have a right to express their own opinions, and where all citizens have the right to live their lives as they desire. There have been certain changes to the Constitution and laws of Malaysia since independence. The rule of law is in harmony with the democratic principles of freedom; human rights are equal to the Constitution and laws in general. As per the constitution:
No Party shall:
(i) Use the force of law against any person against the will, will, or whim of any person, including but not limited to the armed forces (except in exceptional circumstances); or
(ii) Force the government or any other person to give them notice in the public interest so that they have no longer a reasonable chance of causing a riot or other harm.
However, the Constitution allows for an emergency for those exercising the right of assembly and press. The Constitution allows for the right of the people to assemble without fear, intimidation, threats or violence, without violence or intimidation, any one or both of which is punishable by law as a violation of the constitution, and without any exceptions. Laws are not applicable to protesters or persons who may use force upon them.
In its decision entitled “Public Charter
Later, the Malaysian Government with the direct support of YAB Dato Seri Dr Mahathir Mohamad, Prime Minister of Malaysia initiated the national car project.
The development of the local motor vehicle industry has had useful economic functions-generation of employment and has helped establishment of supportive industries. It has spawned a number of companies solely dedicated to making specialised accessories such as sports rims, tints, and an scores of workshops. Presently, Malaysia has become one of the regions largest auto markets and holds a dominant position in vehicle sales among ASEAN countries.
PROTONPerusahaan Otomobil Nasional Bhd (PROTON) has come a long way from a mere car assembler to an integrated car company. The Malaysian Prime Minister, Dato Seri Dr Mahathir Mohamad, commercially launched Malaysias first car model, the Proton Saga, on July 9, 1985. Converted to a public company on 22nd Nov. 1990, it was publicly listed on the Kuala Lumpur Stock Exchange (KLSE) in March 26, 1992.
At present the model line up includes the variants of the Waja, lswara, Wira, Satria (including the new GTi), the up market Perdana, Tiara and Putra. The main plant in Shah Alam with an area of 862,000 sq. meters was originally designed for a capacity of 80,000 units per year and in 1997. This figure increased to 230,000 units per year with the construction of Protons Medium Volume Factory.
Proton had been able to silence its critics who initially thought that it was irrational to establish an automobile industry in Malaysia. Quite-recently, Proton expansion plans, especially the acquisition of Lotus Engineering in 1996, have been the focus of many