Proton Combine With Volkswagen?

KUALA LUMPUR: Proton Holdings Bhd is in talks with Volkswagen (VW) that could lead to a strategic partnership and the assembly of vehicles at the national carmaker’s plant in Tanjung Malim.

The partnership was not expected to see the German auto giant taking an equity stake in Proton but a collaboration in platforms and engines was likely being negotiated, said market sources.

The talks between Proton and VW come at a time when DRB-HICOM Bhd is also engaged in discussions with the German company to assemble cars in Pekan. (See B2)

“For the long term of the company, it (Proton) needs a partner because the size of Malaysia’s market might not be enough to sustain an independent producer,’’ said UOB KayHian research head Vincent Khoo.

Golf GTI Mark 6 is one of Volkswagen’s popular models in the local market

News that Proton is again in talks with VW is somewhat surprising as both parties have come to, and walked away, from the negotiating table numerous times.

A couple of years ago, Proton came close to inking a deal with VW which would have seen the German company taking a stake in the national carmaker.

A last-minute pitch by the Proton management to build on the company’s own “green shoots” then persuaded the Government from sealing an agreement with VW.

Proton found commercial success following the launch of the Personabut did not escape the global recession caused by the US financial crisis.

Its finances have improved with the launch of the Exora and for its first quarter ended June 30, it reported a net profit of RM54.6mil. The company’s shares closed three sen lower at RM3.71 yesterday.

Now, however, the timing is different.

Proton has maintained it needs a strategic partner but would agree to one on its own terms.

It is also understood that the Government would like Proton to have a strategic partner before the review of the National Automotive Policy is completed.

VW’s interest in Malaysia, too, has grown over the past couple of years after equity stake talks with Proton ended.

It has established its own sales and service business in Malaysia, and as of Sept 7, has seen the number of cars sold reach a total of 2,261 units after 2½ years of operations.

VW is reported to be looking at Malaysia as its sourcing hub for auto components in the region to fulfil its worldwide production and has intimated plans to expand its presence in the country through the local assembly of some of its cars.

Volkswagen Group Malaysia Sdn Bhd managing director Andreas Prinz on Wednesday was quoted by Bernama as saying the group was also thinking of making Malaysia its hub for parts distribution in South-East Asia.

“They will not be looking only at Malaysia’s market but use Malaysia as a sourcing hub for worldwide production,’’ he said.

VW is also interested in assembling cars in Malaysia and Prinz said the company was in discussion with a number of parties.

“Currently, in the automotive industry, everybody is talking to everybody, but we are focusing on CKD,” he said.

Malaysia remains an important market in the region as it is the largest passenger car market in South-East Asia, which is said to be an attractive element for VW.

Proton Neo

The CPS is the new range-topper for the Neo three-door hatchback featuring an array of sporty appointments inside and outside of the car.

Exterior modifications include racy-looking bumpers, side skirts, rear roof spoiler, rear diffuser, chunky central exhaust and gold-coloured mag wheels. The interior, meanwhile, sees leather cladding with red-coloured patches and stitching.

The engine of CPS has also been uprated, thanks to the use of variable camshaft control. Actually, the 125hp 1.6-litre petrol/E20-capable engine is the one used in the Persona saloon variant.


Red trimmings and stitching help lift cabin ambience.

Although the outputs have increased marginally, performance in CPS remains basically the same as in the regular Neo (see graph) partly due to the 43kg weight penalty.

Due to the extensive list of modifications, the CPS costs a good B134,000 more than the regular Neo at B698,000 with four-speed automatic as tested here. For B40k less, you can get a manual shiftstick version.

What's cool?

The Neo was always a good-looking hatchback, so those aerodynamic add-ons - which don't look too cartoon-ish at all - help foot the car's bill among the young generation of buyers who are after a B-segment car priced under B700,000.

The interior alterations also work quite well with a quality feel to way the leather is stitched, capable of matching those in many European imports.


CPS asks for B698,000— B134k higher than regular Neo.

Since there are no changes to the chassis, the handling and ride balance remains exceptional for a B car.

Low-speed ride is taut, yet comfortable, while body control and steering weight at high speeds is crisp.

What's not?

Just like in any other Proton: the engine. Despite the more powerful motor, there's still insufficient low-rev torque and you need to rev the engine to at least to 4,500rpm to really get the kick out of it.

And once you're into kickdown hoping to get more grunt at higher revs, the engine becomes utterly vocal. Even during cruising at 120kph, the droning sound of the Mitsu-sourced unit (from the 1990s) is tiring.

And even though the leather seats exude quality to a certain level, the unchanged plastics remain tacky and have some rough edges. This may sound trivial, but B cars from Chevrolet, Honda and Toyota all have higher-grade components, especially those used on the dashboard.


Handling and ride balance remains a strong point.

Despite the good handling the Neo has, the steering is heavy around town and could deter potential buyers wanting a stylish car to use on a daily basis.

Buy or bye?

The first thing most potential buyers are going to ask is whether the B134,000 premium is worth the money. After all, the Neo CPS finds itself in a price-sensitive car segment and that difference means a lot to many.

But to be fair, B700,000 is also what the youthful Honda Jazz or Toyota Yaris ask for in top-line specification (yes, the Neo has airbags and anti-lock brakes like the Japanese duo, not to mention small details like cruise control which the Japs omit).

Don't go thinking that the extra will get you better performance from the uprated engine. Make it like this: performance is essentially the same as before, that is, flawed.

Therefore, the real deciding factor for the CPS is whether you want to spend more merely for the looks which, in our opinion, is worth it because the Neo was always about youthfulness and style and not a practical solution like the Gen2 five-door hatchback or Persona four-door saloon.


Uprated engine still lacks refinement and low-rev torque.

Proton Vision

Proton hopes to be profitable in this 2009/2010 financial year and so far things look good with a profit before tax of RM64 million for Q1 of the current financial year. Revenue grew by 8% to RM1.85 billion compared to RM1.71 billion in the same period last year. These improved results caused Proton shares to rise about 2.45% to RM2.93 per share.

Proton says this is thanks to a better product mix (Exora, Exora, Exora!) even though Proton sales had actually dropped 2% (now at 39,327 units) compared to the same period last year (39,888 units), but this isn’t too bad considering the total industry volume itself had actually dropped by 11% during the same period. There have been a total of 18,000 orders for the Exora since order taking began up to the 15th of August 2009. The Exora managed 1,600 bookings in Indonesia since its launch recently. Proton currently holds 31% market share of the TIV sales as of June 2009.

In the exports area the company said it aimed to export about 20,925 units this year compared to 18,428 units last year. This is still a small percentage of cars compared to the numbers sold in Malaysia but Proton intends to shift to a more export-centric organisation. Proton also wants to sell more CKD export cars instead of the usual CBU cars currently sold, but CKD usually only starts to become viable when volume increases to an amount that can sustain an assembly line for the CKD packs. Proton has started out with CKD models in China and Iran. GEN2 CKD operations in Iran by Zagross Khodro began in April 2009 and CKD pack supply to Youngman in China have also commenced.

What’s coming up for Proton? Some details were revealed at the Q&A session after its latest AGM and others are revealed in their annual report for the last financial year. What should be exciting for you guys is a new car set for introduction in the second half of next year. Proton would not say which car this is but this car is widely rumoured to be a model based on the Mitsubishi Lancer. Manual transmissions will be offered to keep the entry price point low so this should be very good news for those who want to do their own shifting action in a sporty sedan.

Further down the launch schedule will be a new car that will be the fruits of a project called the Global Small Car Programme. Proton has revealed that this will be a small and trendy hatchback with a small capacity engine that meets international emission standards. When this is launched, its goodbye time for the Savvy. Proton’s next generation of powertrains (Campro replacement?) are also being developed together with Lotus as part of a program called the Phoenix Project.

In the alternative fuelsdepartment, Proton will be skipping hybrid carsand fuel cell cars and will be focusing on electric cars. There was a hybrid system installed in a GEN2 called the Lotus EVE Hybrid Conceptthat combined the 1.6 liter Campro engine with a 40hp electric motor. From the looks of it, this will probably remain a technology showcase by Lotus to promote its engineering decision.

Proton currently has two prototype electric vehicles – one based on the Saga and another on the Persona. You’ve seen the Saga EVfeatured here on this blog. It is an EV focused on economy and the 10.1 second 0-100km/h acceleration time (despite 168hp) is a testament of this, but the Persona EV prototype is a totally different animal – it has been developed as a performance EV concept. This likely means larger and higher capacity batteries but a much more powerful electric motor to match!

Proton Persona Envy

Proton Persona is one of the successful car made by Proton.It is not because of it’s performance but because of it’s design.In this post, we talk about Proton Persona Envy which is the gorgeous and sporty looking car.

Today, we want to post about the Proton Persona Envy which was showed to public on 2007.And we sure that Proton car lovers will be very excited at that time.The Persona Envy just a concept to show how you can turn your Persona into nice and unique Proton car. However, this could be the only one Persona Envy that Proton ever built, but the idea is just to show how big the potential is.

This car is now placed at the Proton COE (Center of Excellence) and for those who want to see it, you are welcome there.The specs for this car may be more or less the same as the standard version where it’s powered by the 1.6 liter normally aspirated Campro engine.The Persona Envy is equipped with body kit and sport rims. Also the changed in rear lamp, chromed and with LED. Dual color, orange and black leather seats.

Below are the photos of the Proton Persona Envy.

2007 FLASHBACK > PROTON PERSONA ENVY - IDEA TO MODIFY YOUR PERSONA > NICE & UNIQUE PROTON CONCEPT CAR - PERSONA ENVY.

Proton Jumbuck

Proton has announced that its Jumbuck utility model, as currently onlong-term loan to CarAdvice, will be phased out over the next few months ahead of the launch of an all new model.

The company introduced the current model Jumbuck as a low cost half tonne pick up in early 2003 based on the previous model Persona sedan, a car which utilised superseded Mitsubishi design and technology.

The Jumbuck is the last of the Proton models on sale in Australia that still utilises the outdated Mitsubishi design and technology.

Proton is in the process of developing a new model Jumbuck, targeted at the current market leaders which will take advantage of the latest technology in terms of safety, structural integrity and powertrain and will be a Proton-developed model, sharing a platform with an existing passenger car model.

Proton Australia will also launch additional models within the next 12 months to compliment the range such as the new low cost sedan late in 2009, followed by the new entry level Persona, Satria Neo & Gen.2. These models will be followed by the release of the Satria Neo CPS, Exora MPV seven-seater and Satria Neo R3 in 2010.

In keeping with the current Jumbuck philosophy, it will be a cost effective, economical and simple pick up with the possibility of a number of different configurations for commercial or personal use.

According to Proton Cars Australia managing director, Mr John Startari, the new generation Jumbuck will benefit from the latest technology and will not be constrained by the limitations of what is now an old platform in the existing model.

“The current Jumbuck has been great but it is in the final phase of its life and a new model is well overdue, it has been a great ute but there will be a new generation model to replace it,” said Mr Startari.

“It has been an important model for us here in Australia providing the market with a unique blend of passenger car based design, half tonne capacity and low cost entry and running costs.

“Proton is mindful of safety and that is why we are moving to bring a new safer, more modern Jumbuck to market as soon as possible.

“Like all Proton models the new Jumbuck will retain a value for money purchase price that will ensure it retains its status as the lowest cost commercial vehicle to own and run in this country.

“The important point will be that the new car will not only be the lowest cost commercial but also amongst the safest on the road”.

While details of the new Proton Jumbuck are still yet to be announced the car will still be powered by a small economical four cylinder engine but will have the benefit of both a manual and an automatic transmission option.

Along with this there will be increased levels of safety including multiple SRS airbags, ABS anti lock brakes, Lotus tuned ride and handling and the latest crash protection technology in terms of progressive deformation crumple zones and integrated passenger cell design.

Proton In Australia

MILPERRA, AUSTRAL - August 14, 2009: Proton has announced that its current Jumbuck model will be phased out over the next few months ahead of the launch of an all new model Jumbuck.

The company introduced the current model Jumbuck as a low cost half tonne pick up in early 2003 based on the previous model Persona sedan, a car which utilised superseded Mitsubishi design and technology.

The Jumbuck is the last of the Proton models on sale in Australia that still utilises the outdated Mitsubishi design and technology.

Proton is in the process of developing a new model Jumbuck, targeted at the current market leaders which will take advantage of the latest technology in terms of safety, structural integrity and powertrain and will be a Proton-developed model, sharing a platform with an existing passenger car model.

Proton Australia will also launch additional models within the next 12 months to compliment the range such as the new low cost sedan late in 2009, followed by the new entry level Persona, Satria Neo & Gen.2. These models will be followed by the release of the Satria Neo CPS, Exora MPV seven-seater and Satria Neo R3 in 2010.

In keeping with the current Jumbuck philosophy, it will be a cost effective, economical and simple pick up with the possibility of a number of different configurations for commercial or personal use.

According to Proton Cars Australia managing director, Mr John Startari, the new generation Jumbuck will benefit from the latest technology and will not be constrained by the limitations of what is now an old platform in the existing model.

"The current Jumbuck has been great but it is in the final phase of its life and a new model is well overdue, it has been a great ute but there will be a new generation model to replace it," said Mr Startari.

"It has been an important model for us here in Australia providing the market with a unique blend of passenger car based design, half tonne capacity and low cost entry and running costs," he said.

"Proton is mindful of safety and that is why we are moving to bring a new safer, more modern Jumbuck to market as soon as possible," he added.

"Like all Proton models the new Jumbuck will retain a value for money purchase price that will ensure it retains its status as the lowest cost commercial vehicle to own and run in this country," Mr Startari said.

"The important point will be that the new car will not only be the lowest cost commercial but also amongst the safest on the road," he added.

While details of the new Proton Jumbuck are still yet to be announced the car will still be powered by a small economical four cylinder engine but will have the benefit of both a manual and an automatic transmission option.

Along with this there will be increased levels of safety including multiple SRS airbags, ABS anti lock brakes, Lotus tuned ride and handling and the latest crash protection technology in terms of progressive deformation crumple zones and integrated passenger cell design

The New Proton Sedan

When a new national car is about to be launched, many will start to speculate on the name, and this is also the case with the new Proton sedan.
Word passing through the grapevines is that the new Proton sedan will be called the Proton Persona, and there was even a little photo being circulated of the sedan with the word Persona on it’s number plate.
Today we get a little confirmation - though not 100% sure as it is not from Proton’s mouth. The Edge carries an article on the new Proton Sedan and it calls the new car the Proton Persona. This name is not new, as it has been used by Proton in the past as the export market Proton Wira’s name in the UK.
The article also mentions Proton targets to sell about 4,000 units of the Proton persona a month, though industry analysts from RHB Research Institute thinks a figure of 2,000 to 2,500 Proton Personas a month is more achievable and sustainable