Perodua pushes Proton to the brink
KINIBIZ National carmaker Perusahaan Otomobil Nasional, or better known as Proton, was established in 1983, as part of then-prime minister Dr Mahathir Mohamad’s vision of seeing Malaysia becoming an advanced, industrialised nation.
Carmaking was one of the measures Mahathir introduced.
Some have equated the national car project to putting the cart before the horse, as Malaysia, at that time, did not possess the technological capabilities to do so.
This was substantiated by the findings of the Industrial Master Plan that was formulated with international assistance, which recommended that the country focuses on resource-based industries.
Despite objections, Mahathir obstinately pushed on with his vision. The first Proton rolled off the production line in 1985, two years after its inception.
The first Proton to enter the market was a rebadged second-generation Mitsubishi Lancer Fiore with its body parts stamped in Malaysia - embellished with a dark blue shield that encompassed a yellow crescent, positioned below a yellow 14-pointed star - to which Malaysians could proudly call their national car: Proton Saga.
That was unfortunate timing as Malaysia back then was in the throes of a recession, which saw Proton being immediately put into the red.
But Proton, initially owned by the government-owned Heavy Industries Corp of Malaysia, rose from the ashes and by the late 1980s, it was selling close to four out of five new vehicles sold. In 1994, it was still controlling 74 percent of the market.
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