Proton: Struggling against the grain of economics
Summary :
Table of Contents
- Introduction.
- Understanding Proton and how it got to where it is today.
- A patriotic man with grandiose visions and strong convictions.
- Special rights and privileges for Malays.
- Mohamed's goals after taking office in 1981.
- Proton and a stiff protectionist trade policy.
- The only hope for Proton to continue on as a legitimate player.
- The Malaysian government's investment entity.
- Proton's problems.
- Relation to its size.
- Promising deals to produce taxis in China.
- Decreased costs in an attempt at profitability.
- The challenge of competing in foreign markets.
- Conclusion.
- References.
Abstract
economics might finally be winning in its fight after over 25 years with proton, a small Malaysian carmaker whose very continued existence is a direct affront to the academic discipline. The end finally appears near for the pet project of former Prime Minister Mahathir Mohamed and source of national pride for Malaysia. Less than one month from now, in January 2008, new tariff laws will take effect for proton and Malaysia, a founding member country of the Association of Southeast Asian Nations (ASEAN) under the Asian Free Trade Agreement (AFTA), which calls for dramatically reduced tariff protection among member countries. Almost everyone involved in the automotive industry, including officials at proton, expect that proton will be unable to continue on as a viable enterprise under its existing operating structure.
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