Malaysia's Proton launches 'zero-defect' campaign
Proton was established 25 years ago as Malaysia's national car maker as part of an ambitious national industrialisation plan, but it has long been criticised for poor quality and unimpressive design.
By Agencies |
KUALA LUMPUR: Malaysia's national car maker Proton on Friday launched a "zero-defect" campaign aimed at erasing a reputation for poor quality that has left it struggling to compete against foreign competitors.
Proton managing director Syed Zainal Abidin also announced plans to fit all models with natural gas tanks from October to help motorists beat the rising cost of fuel. The move follows a 41 percent petrol price hike here this month.
However, the car maker is pushing ahead with plans to roll out its first multi-purpose vehicle (MPV) next March, saying demand remained for the gas-guzzling models, which are popular with large Malaysian families.
In an emotional plea to 5,000 employees, Syed Zainal, a 45-year-old engineer who took the helm two years ago, urged them to focus on quality control, which is critical to profitability and overseas exports.
"If we produce cars with defects, consumers will get fed up with us. With the recent fuel hike, consumers want quality cars. They have high expectations," he said at Proton's assembly plant west of Kuala Lumpur."Let's unite. Let's work together in a sincere manner so that we can achieve profit for the company," he said.
Syed Zainal said 60 per cent of defects in Proton cars were due to poor quality components from vendors, but admitted the rest of the blame fell on the firm's workforce.
"Today, we want to focus on rebuilding the company. The focus is putting Proton on a better footing, to improve quality, product and profit. We need to be prepared to compete globally," he said.
Proton was established 25 years ago by former premier Mahathir Mohamad as part of an ambitious national industrialisation plan, but it has long been criticised for poor quality and unimpressive design.Complaints typically relate to failures in power windows, doors and alarm systems.
As part of the "zero-defect" programme, banners have been posted in the assembly plant reading: "Erase the culture of 'I don't care about quality'" and "Don't just talk, ensure quality."
Syed Zainal said Proton had secured government approval to give buyers the option of purchasing vehicles powered with natural gas."It will be in all Proton cars by October. It is part of our plan to support the government to reduce the dependency on oil," he said.
He insisted that despite the changing mood over energy consumption, Proton's new MPV will be popular.
"Proton needs the MPV model. People's lifestyle has changed. The price will be affordable," he said. Proton said in February it had made net profits for two quarters in a row, thanks to lower operating costs and increased sales.
The Proton chief said the carmaker would proceed with expansion plans despite the soaring cost of raw materials.
"When there is a need for labour, we will hire people. There is no freeze," he said.
Proton's market share has slumped over the years, as it faced difficulties coping in a new deregulated market. The government has urged it to forge a partnership with a foreign automaker to give it the expertise and economies of scale that it needs to survive, but talks with Volkswagen and General Motors have collapsed.
Proton managing director Syed Zainal Abidin also announced plans to fit all models with natural gas tanks from October to help motorists beat the rising cost of fuel. The move follows a 41 percent petrol price hike here this month.
However, the car maker is pushing ahead with plans to roll out its first multi-purpose vehicle (MPV) next March, saying demand remained for the gas-guzzling models, which are popular with large Malaysian families.
In an emotional plea to 5,000 employees, Syed Zainal, a 45-year-old engineer who took the helm two years ago, urged them to focus on quality control, which is critical to profitability and overseas exports.
"If we produce cars with defects, consumers will get fed up with us. With the recent fuel hike, consumers want quality cars. They have high expectations," he said at Proton's assembly plant west of Kuala Lumpur."Let's unite. Let's work together in a sincere manner so that we can achieve profit for the company," he said.
Syed Zainal said 60 per cent of defects in Proton cars were due to poor quality components from vendors, but admitted the rest of the blame fell on the firm's workforce.
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"Today, we want to focus on rebuilding the company. The focus is putting Proton on a better footing, to improve quality, product and profit. We need to be prepared to compete globally," he said.
Proton was established 25 years ago by former premier Mahathir Mohamad as part of an ambitious national industrialisation plan, but it has long been criticised for poor quality and unimpressive design.Complaints typically relate to failures in power windows, doors and alarm systems.
As part of the "zero-defect" programme, banners have been posted in the assembly plant reading: "Erase the culture of 'I don't care about quality'" and "Don't just talk, ensure quality."
Syed Zainal said Proton had secured government approval to give buyers the option of purchasing vehicles powered with natural gas."It will be in all Proton cars by October. It is part of our plan to support the government to reduce the dependency on oil," he said.
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He insisted that despite the changing mood over energy consumption, Proton's new MPV will be popular.
"Proton needs the MPV model. People's lifestyle has changed. The price will be affordable," he said. Proton said in February it had made net profits for two quarters in a row, thanks to lower operating costs and increased sales.
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However, it still booked a net loss of 32.92 million ringgit ($10 million) for the nine months to December, although it was smaller than the 590.448 million ringgit loss a year earlier.The Proton chief said the carmaker would proceed with expansion plans despite the soaring cost of raw materials.
"When there is a need for labour, we will hire people. There is no freeze," he said.
Proton's market share has slumped over the years, as it faced difficulties coping in a new deregulated market. The government has urged it to forge a partnership with a foreign automaker to give it the expertise and economies of scale that it needs to survive, but talks with Volkswagen and General Motors have collapsed.
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