Proton Vendors – Proton-Perodua merge will benefit industry greatly

The PVA (Proton Vendors Association) have applauded the call by the government for local automotive companies to consolidate and merge in order to maintain their competitiveness in the market and they believe that a merger between the 2 national carmakers, Proton and Perodua would surely be instrumental in boosting the local automotive industry.

According to Datuk Dr Wan Mohamed Wan Embong, the time is right and ideal for both Proton and Perodua to consider merger and its positive impacts because such a move will help the local industry to expand to the international market. He said that it is now more important to look forward than at the current situation especially in light of the challenges faced in the global economy which is ‘full of uncertainties’.

The association will look at the positive side of things before embarking on the whole merger exercise because it would benefit both parties. Proton for instance is in a better standing currently as compared to 3 years ago and their major advantage of having spare capacity could help Perodua where they would no longer need to find further investment. Cost savings could be garnered through sharing of expertise and services between the 2 companies. At the moment, the domestic market cannot be depended on by Proton and Perodua if they are to compete in the long term.