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.