Proton has successfully launched two new marques this year - the Persona and the Saga - but the company has much to do to restore an unsightly balance sheet.
Sales suffered a 55 per cent fall last year, which led to losses of US$169 million, as aggressive marketing from Japanese rivals Toyota and Honda and domestic marque Perodua caused Proton’s market share to plunge. Sales of the Persona are reasonably healthy, with more than 5,000 units sold last year. That has helped make up for the phasing out of Proton’s Satira, which sold 4,000 units in 2003. However, sales of its best-selling Wira have drooped from 64,000 to 16,000 since 2003.
Further bad press has hit Proton recently, as customers have complained of mistreatment and over-charging by rogue dealers. The problem has been exacerbated by rising fuel costs following cuts in Government subsidies.
This has put strain on Proton’s customer care programme i-Care, which was introduced by the company’s managing director Datuk Syed Zainal Abidin Syed Mohd Tahir in July last year.
The planned marketing assault for the new MPV follows the re-appointment of McCann Erickson a fortnight ago (Media, 8 August), which has proved to be the pitch of the year so far in Malaysia.
Proton also has plans to expand operations overseas to offset its problems at home. Agencies pitching for the RM45 million (US$14 million) account were asked to present creative and strategy for markets including Thailand, India, Indonesia and the Middle East as part of a brief to position Proton as a world-class automotive brand.
The IPG agency edged out M&C Saatchi in a final round of pitching. Earlier rounds of a gruelling three-month review involved JWT and TBWA-ISC Malaysia, while Leo Burnett’s sister agency Black Pencil and Ogilvy & Mather pulled out after attending the initial briefing session.
Proton, which was founded in 1983, has been the subject of persistent take-over rumours in recent years, as General Motors, Volkswagen and Nissan look for an opportunity to inherit Proton’s premium sports car marque Lotus. However, a proposed deal with Nissan floundered after objections to foreign ownership of Malaysia’s only national car brand.
Volkswagen came close to buying the firm but the deal also floundered after objections to foreign ownership.
Sales suffered a 55 per cent fall last year, which led to losses of US$169 million, as aggressive marketing from Japanese rivals Toyota and Honda and domestic marque Perodua caused Proton’s market share to plunge. Sales of the Persona are reasonably healthy, with more than 5,000 units sold last year. That has helped make up for the phasing out of Proton’s Satira, which sold 4,000 units in 2003. However, sales of its best-selling Wira have drooped from 64,000 to 16,000 since 2003.
Further bad press has hit Proton recently, as customers have complained of mistreatment and over-charging by rogue dealers. The problem has been exacerbated by rising fuel costs following cuts in Government subsidies.
This has put strain on Proton’s customer care programme i-Care, which was introduced by the company’s managing director Datuk Syed Zainal Abidin Syed Mohd Tahir in July last year.
The planned marketing assault for the new MPV follows the re-appointment of McCann Erickson a fortnight ago (Media, 8 August), which has proved to be the pitch of the year so far in Malaysia.
Proton also has plans to expand operations overseas to offset its problems at home. Agencies pitching for the RM45 million (US$14 million) account were asked to present creative and strategy for markets including Thailand, India, Indonesia and the Middle East as part of a brief to position Proton as a world-class automotive brand.
The IPG agency edged out M&C Saatchi in a final round of pitching. Earlier rounds of a gruelling three-month review involved JWT and TBWA-ISC Malaysia, while Leo Burnett’s sister agency Black Pencil and Ogilvy & Mather pulled out after attending the initial briefing session.
Proton, which was founded in 1983, has been the subject of persistent take-over rumours in recent years, as General Motors, Volkswagen and Nissan look for an opportunity to inherit Proton’s premium sports car marque Lotus. However, a proposed deal with Nissan floundered after objections to foreign ownership of Malaysia’s only national car brand.
Volkswagen came close to buying the firm but the deal also floundered after objections to foreign ownership.
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