If I Was The Boss of Proton: An Unemployed Man's Craze

See I told you this issue will come out. I actually wrote the whole thing, then later split it into 2 issues to further increase readership in this lousy little blog. But if you're reading this, I thank you. 


Anyway let's get on with the rest of this mad man's senseless craze on having to take over a multinational company and reforming it. After discussing corporate structure and positioning the company, we now look at how we shall allocate and maximize the potential that is existing in the company, and where we shall go from there in order to grow and strengthen as a global corporation. 


Direction
Scrap the Campro. This VTEC-wannabe is not boding well for us, and it doesn't help that we just bought an expensive MIVEC technology. Switch over to MIVEC, and start using the 2 engine on all upcoming models. All except for the Saga, which will always need to be paired with a 1.3l engine. The Saga represents value, so this new 1.3l engine will need to be a whole lot more efficient than what it is now. Having less engine variants in the brand means being able to maximize cost-efficiency on replacement parts and maintenance. It also means it is easier to manage supply chain. We will also need to learn how to make these MIVEC engines, so we can ultimately make our very own engines and make them well.

Then there's the issue on transmission. The world is giving out 7-8 Speed auto boxes, and here we are still using 4 Speed ones built using technology from the Renaissance. May I also stress that the 4th Gear is actually an OverDrive. Then there's the thing with other generic technologies like Push Start and Pedal Shifts. They add tremendous value to our products and we need to ensure we are able to at least provide these basics.

Because we have Lotus (which if it was up to me, I would not sell anytime soon because we've barely even scratched the surface of what the Lotus can give us) we shall focus on handling and sportiness. Because we also have team S2000 we can leech off the experience and know-how of these people and make our cars more reliable under extreme conditions. We could also research turbos and use them on our models in the future. I know some of these things are already being done right now, and that just means the existing company is not all crap. So think of us making Malaysian versions of Mazda6s.

It is imperative that we have an identity, anything is better than nothing. And what's worst if we've been in the industry longer than Kia and Hyundai, and that we've been government-backed all these while.



Bread and Butter
Every product across all industries in the world have bread and butter ranges. Although we are always excited to design and engineer the most advanced technologies, we need to understand while the general public are as enthusiastic about it as you are they have limited resources and their criteria for choosing a good car includes boring things like Practicality and Safety and The Number of Seats. This is the one reason why cars like the Panamera and Rapide were born. Even super car makers need to make money.

I will make all my car models official so I do not have to get my staff to constantly come up with new car names, and that they may accidentally name a car Proton Syphilis. So the range will be:

Saga
Urban zippy little cars sell very well. The City and Vios immediately became favorites. I can't imagine why the Saga will not sell, not considering external forces at the moment.

Persona/Inspira
Personally I prefer the Persona, simply because it's not somebody else's design. What is worst that having a butt-ugly car? Having an Inspira. But we shall speak of this at a later time.
This range, provided it is carefully priced, will sell like hot-cakes. It's the single most balanced segment for the Malaysian and many other markets world-wide.

Perdana
Like all brands, we need a medium-sized luxury sedan, and frankly the Perdana has long outlived it's lifecycle. This segment is important as it creates a flagship for the brand. It is the model people will look to in absolute marvel, and then buy a Persona because it's a little out of their budget. Then they will imagine driving a Perdana while in their Personas. If you're a car enthusiast you will understand what I just said.

Satria and Putra
I will maintain the Satria, constantly building on it and improving it. The Satria is a very well-balanced car, and I believe it's capabilities are very well under appreciated. Also I will reintroduce the Putra, because what is a car brand without the coupe!
These 2 models will feature the most advanced in motorsport technology the brand is capable of. What use is an S2000 team when none of the expertise are being channeled to good use? These 2 models are the flagships of performance, the 2-doors many would have bought if it wasn't for their families.

Exora
Who would argue the practicality and versatility of an MPV ( it's so rhetorical I will just put a PERIOD at the end of this sentence). And also a MINI-MPV. Or better yet, maybe come up with a Hyundai Starek equivalent. Them, Alphard and VelleFire seem to be doing well in their little niche.

SUV
This is a must. But we will probably need to do some extensive research on this highly specialized segment before making yet another SUV that can only be used on roads (flashback X6).

All these models will only have a lifespan of maximum 6 years. All models, save the sports, will have only one face-lift on the 4th year. All models exceeding 6 year of age will have to be chopped immediately to make way for new ones. We need to first be seen as an innovative and refreshing brand to be able to compete in an innovative and refreshing industry.

Conclusion

Proton was initially a man's greed. But it has become an entity. It has become the ambassador of our nation. Proton has become a part of all our lives. It is the reliable cars that we usually like to own, but it is the problematic ones we usually have special relationships with. Proton has had numerous chances at glory which they failed miserably at grasping and making full use of, but this does not make it any less potent than other companies. If I ever become the boss of Proton all this will change. Because the pride of this nation is at stake, and I believe we will do everything we can to protect it.

Everything in discussion over the past 2 weeks are just an unemployed man's dreams, and none of them hold any truths. His intentions is to merely spark the thinking side of the readers' minds, and to remind himself he can still dream of the impossible.

If I Was The Boss of Proton: A Hypothetical Dream

Source: http://en.wikipedia.org/wiki/Proton_(automobile)

Before I begin, I would first like to point out that today's post is hypothetical. I have absolutely no intentions to snub the great minds that have been shaping the greatest conglomerates in Malaysia, nor do I have any intentions to raise any issues that will anger certain families. In contrast, I have utmost respects for them. All I want is to dream. All I want is to imagine for one brief moment I am capable of running a Multi-National Company, a company that brings along with it to the whole world a summary of Malaysia's achievements. All I want is to close my eyes and imagine what would I do if I was the boss of Proton.

I was a proud owner of a Proton. My household owned a total of 3 Proton cars, and even though we have had to pain-stakingly deal with issues of power windows and Milo-tin bodies and parts that just come off whenever they feel like, most of us can agree that the up-to-300%-tax levied on imports ensured every household a chance at owning a national car, and having a sentimental story or two to share.

In this post I will not regard Proton as an automobile company because of my limited knowledge in the industry, rather a company in distress and in dire need of reformation. Here's a little insight on my plans:

The Structure

When a company is trying to survive for over 25 years, it's apparent that there is something wrong with its administration, the company structure. This is what we need to address foremost before anything else.

At the core of a successful organization is an efficient and effective system. Efficient that it does not contain any unnecessary parts that will only slow the company down. Effective that after strip-downs it will perform better than before. Think of it as a Cayman R and a stock Cayman. The R is more efficient and more effective than the stock. Because it has a little more here and a lot less there.

Then we believe that all these while Proton never had a Mission Objective and Motto besides 'Let it Be Known That Malaysia Make Cars!' set some 28 years ago. Ever since then it has always been 'Let's Not Die On Me Now!' Well we need to change that. We need a proper direction now, actually we needed one 15 years ago.

Car companies have a passion. Some thrive on their knowledge in performance, others on their practicality and reliability. Some work to optimize their fixed costs by using similar parts on almost all models, in order to reduce costs on maintenance while not compromising on performance.

You see performance and reliability is usually at both ends of one line, whereby you'd usually either have more of one or the other. The only way for space-age technology to become cheap is when production increases to a point where the fixed cost is insignificant. Brands like Peugeot and Volkswagen thrive on this ideology. They build an expensive to maintain technology, plant them on all of their upcoming models over the next 6 years, then build enough market in the world to compete with each other in terms of supply and demand, and ultimately bring the price down dramatically.

Toyota brags their method to maintain a lean organization is through efficient management, JIT. Honda gives you sports performance in even their most luxurious cars. Mazda sells you design art alongside flawless handling, allowing you to fully maximize all given horse powers.

So what will Proton be? We know we have Lotus DNA in all our cars. Heck we managed to make the Inspira handle way better than the fellas at Mitsubishi could. Okay that's just me in denial. Maybe they just kept their skills for the EVOs. We also have super crappy, VTEC-Wannabe Campros that tend to lose so much power over the years it will not be able to move before it hits 10 years old.Then there's the issue of us owning such an expensive blueprint: the latest Lancer. But let's not rant about the past, and focus on the future.

Positioning
The most vital part of knowing what to make is to know who to make it for, and to know who else makes them for these people, and to know who are the better ones at making them. Right now Proton is sadly at the Uber Crap range in all automobile Hall of Fame. We have to change this, by having a direction. 

1. Pricing
AFTA needs to be implemented, and this means there will no longer be any protection. We need to bring our car prices down further while dramatically increasing quality. The only way to do this is through Economies of Scale: for it to sell in all corners of the world to reduce fixed cost. Work with the most competitive suppliers to reduce marginal costs. Ultimately a Persona needs to be as good as a Kia Forte, at RM 25,000 a piece.

2. Find a Market
Competitors equal market. Market equal opportunity. We must place ourselves with a competitor. I say we try to cope with Kia and Hyundai. For starters everything will need to be competitive, from design to technology, from supply chain to pricing. We must be in all countries these companies are in. We must breathe down their necks and occasionally scare them with our wits.

3. Find a Mentor
All companies have some other company they've always wanted to be or beat. Proton needs one of that. Maybe we try assessing Mazda, but only in terms of company ideology. Mazda is one of the few companies still building cars out of passion and not just money. The idea here is to absorb from Mazda design and technology know-how, and their luxury.

4. Fix All Flaws
Before we move forward and compete with the giants, we first need to open up all the closets and remove all skeletons. This includes bucking up on quality control and eradicating the power windows problem. We also need to move our company out of the budget mindset and stop making cheap cars. We need to phase out all old models and not try to milk them until they dry up. Only after all these are cleared up can be actually begin to stand up and fight.

5. Originality
An ugly car is prettier than somebody else's car. Not only did Proton thrived off the old Lancer and Mirage designs, they now bought another Lancer. And this time they didn't even spend half a thought on redesigning it to look original. It is very embarrassing to see that even after so many years being in the industry one can't even come up with the most basic requirements of a car maker: an original car.

6. Safety Standards
From now on all Proton cars will have a 5-Star NCAP rating, along with basic equipment like the ABS, SRS, EBD, CVT and tC. These are the most basic a car maker can provide for its consumers, and we shall not deprive our consumers of them.

7. Stay Competitive
Give the people what everyone else is giving: at the moment pedal shifts, 6-speed boxes, efficient engines and luxury. Then stay competitive by at least matching everything in terms of technology and luxury with competitors.

7. No More Stupid Spending
Seriously like all companies, we have limited resources to work with. We should focus on more pressing matters and stop chasing after our personal goals. Spend wisely and in areas that actually need the money. Lotus is still a stupid buy, simply because Proton hasn't even tried to extract half of what Lotus is capable of.


Next round I will be discussing issues of company direction, laying out all available resources and planning the next move with them. Then we will also be looking into the finalized ranges Proton will be making, and how we can comfortably enter new market and immediately stay competitive. Don't worry, this time the next issue will most definitely be posted next week. It's already finished, and set it to post sometime next week. There won't be another failed mini series here.