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Given its size, Proton obviously cannot challenge the global players head-on so the other strategy for the future (if it wants to remain independent) is to find niches in the market to cater to. One of these is the sportscar niche which has traditionally given manufacturers a fairly good profit margin from low-volume models.

Earlier this year, Proton announced that it had commissioned Lotus Engineering to begin work on a sportscar that was then referred to as the ‘Proton Ultimate’. A few months ago, this car was renamed the ‘Malaysian Sports Car’ (MSC) and a few more details were provided of the car which is expected to go on sale in 2003.

The concept of the MSC is to use advanced engineering but keep costs down through the use of some components that are used in high-volume models. This is the same approach taken for popular sportscar like the Toyota Celica, Nissan Silvia and Ford Puma – they look exciting but there are many components from other models. For the MSC, items like the foot pedals, power window and locking mechanisms, etc can all be shared with the Waja and yet not make a significant difference to the buyer. This is not possible with Lotus cars which, by virtue of being more exclusive, have many customised parts with low production runs that bump up the cost.

OPEL SPEEDSTER
The new Opel Speedster (Vauxhall VX220 in the UK) which has just gone on sale in Europe gives a good idea of how the MSC could be as it was conceived along the same concept and in fact, it uses a Lotus-developed platform and is built at the Lotus factory in UK. Some 80% of the parts in this sportscar are shared with the Open Vectra.

The Speedster has a bonded aluminium chassis that keeps weight way down and yet achieves exceptionally high torsional rigidity. The composite bodywork is designed to withstand frontal and side impacts to the energy levels that regulations set, while an integral steel roll-over bar offers support in the event the car flips upside down.

The compactly dimensioned Speedster (length – 3790 mm, width – 1711 mm) rides on double wishbone suspension and is powered by a mid-mounted 2.2-litre all-aluminium 4-cylinder engine that develops 108 kW/147 bhp. A member of Opel’s ECOTEC engine family, the powerplant weighs just 138 kgs and installed in the Speedster, its fuel consumption is claimed to be as good as 13 kms/litre. The Speedster is claimed to be able to rocket to 100 km/h in less than 6 seconds and continue on to a top speed of 220 km/h.

Inside the two-seater, the dominating feature is the visible aluminium chassis. The instrumentation is kept to bare essentials with two dials and LCD displays that give information as needed. In other words, this is a car that will satisfy the purist. In fact, the Speedster even comes without air-conditioning, central locking… not even power steering! The engineers feel that such features would add weight and clash with its uncompromising character.

CORE TECHNOLOGY
The Lotus-developed core technology used by the Speedster – the exceptionally stiff and light chassis of extruded and bonded aluminium which also forms the load-bearing structure for the car – will also be used in the MSC as will a mid-engined layout. With Lotus having refined this technology – its ultimate form is in the Lotus M250 prototype – the development cost for the MSC would not be very high. According to Tan Sri Tengku Mahaleel, Proton’s CEO, it will cost just a quarter of what it would cost to develop a high-volume sedan. Considering that the Waja was developed at a cost of RM970 million, this means the MSC should cost around RM400 million. The MSC will not be produced in large numbers and a figure of 3,000 units, to be produced over five years, is planned.

The powerplant for the MSC is still a secret but Tengku Mahaleel has indicated that it would have at least 147 kW/200 bhp. It could well be the Petronas engine or to reduce costs, a turbocharged or supercharged Satria GTI engine which is being developed by Proton. But because of the light weight of the car, it will not need a large engine to achieve real sportscar performance. The target is acceleration from standstill to 100 km/h in less than 6 seconds.

When the MSC was first announced, the price indicated was around RM150,000 but that was before any cost studies were done seriously. The figure has now been raised to ‘under RM200,000′ which would still be quite a bargain against comparable imported sportscars.

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Edaran Otomobil Nasional (EON) has issued a statement that denies any valid truth in a report in today’s Business Times which suggests that USPD – now owned by Proton – will become the sole distributor of Proton vehicles, suggesting that EON would be terminated. The report went on to say that if EON did not renew its distributorship agreement by the end of this year, it would cease to be a distributor for Proton, a role which it has had since 1985.

EON Managing Director Datuk Adzmi Abdul Wahab says that ‘at no time in the talks with Proton on the distributorship agreement was this issue ever raised’ and that ‘discussions on the distributorship agreement are still ongoing.’

It is understood that Proton has also issued a separate statement which confirms that the BT report was ‘inaccurate’.

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Motorists travelling along the major highways during this festive season will be able to have a free coffee break at selected Petronas stations.

The campaign, “Take a Coffee Break”, will be run in two phases. The first phase will be from December 22nd to 24th and the second, from December 29th to 31st. On each of the days, Nescafe (one of the co-sponsors) will offer free coffee between 6:30 pm and midnight. Nescafe expects to serve between 3,000 and 4,000 cups of coffee each day. There will also be a surprise hamper for every 1,000th motorist who stops for coffee at each station.

The Petronas stations which will be involved in the campaign in the first phase are at Machap (southbound), Ayer Keroh (southbound), KL-Seremban Highway, Sg Perak (northbound), Rawang, Bentong, Maran and Jertih.

During the second phase, stations involved will be at Machap (northbound), Ayer Keroh (northbound), Sg Perak (southbound), KL-Karak Highway, Genting Sempah, Ulu Bertam Maran and Jertih.

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If you drop by at the Toyota showroom, you’ll see a slightly different Toyota Camry 2.2GX. The overall shape is the same but there are some subtle cosmetic changes that freshen up the looks of this executive sedan.

The latest Camry has a more elegant front grille with chrome trim and is now equipped with multi-reflector headlamps that have a crystal-like appearance. At the rear, a redesign of the light clusters gives a larger look that enhances visibility. A new design for the wheels is also used; as before, these wheels are original Toyota accessories. For the latest Camry, customers have a choice of five colours.

Inside, there’s the same high-class feel with fitments such as an oak-_coloured leather wrapping for the steering wheel, gear knob and handbrake lever. For those who desire even more luxury, leather upholstery can be provided as an extra-cost option.

For enhanced motoring pleasure, the driver can enjoy a wider variety of music with the upgraded audio system which now includes 6-CD changer and 6-speaker system. For a limited period, UMW Toyota Motor is offering this option, said to be worth RM1,500, for just RM150 extra. Customers must, however, indicate that they wish to have this upgraded audio system installed when they order their new Toyota Camry.

The list of upgrades is rounded off by the improved remote control for the central locking/security system. The unit is slimmer, making it easier to handle and keep in the pocket. For extra convenience, there is also an extra button which unlocks the boot remotely.

No changes have been made to the mechanical areas although, like other manufacturers, Toyota has a policy of continuous improvement so it is possible that little details here and there have been improved or refined.

The locally-assembled Toyota Camry 2.2GX is powered by the Toyota 5S-FE 4-cylinder 2.2-litre engine with a Direct Ignition system. The engine delivers torque smoothly, thanks to the use of two balance shafts installed within the engine. An electronically-controlled 4-speed automatic transmission is standard and provides smooth shifting with minimal losses in power and fuel economy.

The independent MacPherson strut front/independent dual-link rear suspension arrangements are mounted on subframes which help reduce noise, vibration and harshness (NVH).

Safety is always a top priority for Toyota and it has its own tough in-house – GOA – which the Camry had to pass. GOA stands for ‘Global Outstanding Assessment’ and in setting these in-house standards, Toyota was ‘tough on itself’ and set exceptionally tough levels. Some standards are comparable to those presently required in many countries while others were ahead by a number of years. And some, like rear-end collisions and roll-overs are not even mandatory in any country’s regulations.

The aim of GOA is to ensure that the vehicle’s bodyshell can effectively absorb the enormous forces of a collision and provide adequate ‘survival space’ for the occupants to keep injuries to a minimum. ‘Survival space’ is not yet a requirement of any country’s safety regulations but Toyota demands it. To achieve this is not easy, which is why ‘GOA-certified’ bodyshells are only progressively being introduced as new generations of models are designed.

Besides the strong body structure, the cabin also has many sections which are more energy-absorbing to minimise injuries to the occupants’ heads. Airbag Supplementary Restraint Systems for the driver as well as the front passenger are standard, giving a very high level of protection for the occupants. Other safety features include a laminated windscreen and ABS to prevent skidding during braking.

The on-the-road price (Peninsula Malaysia) for the new Toyota Camry 2.2GX with metallic finish is RM168,229.26. Prices for East Malaysia will be slightly higher due to shipping costs while prices in Langkawi will be lower due to the omission of duties.

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Following the “Meet the Waja Owners” Campaign which was linked to the “Free Pre-Inspection” campaign from November 19th to December 7th 2000, Proton found that 88% of 361 owners who were interviewed were satisfied with their Proton Waja. The survey was conducted by Proton’s Quality Management Division and involved owners mainly from the Klang Valley area with some from Malacca, Penang, and Terengganu.

The figure is said to be ‘unprecedented’ as previous surveys have had satisfaction rates no higher than 60%. The survey also revealed that 26% of owners previously owned another make while 76% percent were owners of other Proton models before buying a Waja. And regardless of whatever car they owned before, 67% expressed that they were very satisfied with their Waja compared to the car they had been driving before.

Proton has indicated that the event is just one of many that will come and is part of the manufacturer’s new approach of meeting customers face-to-face to obtain direct feedback for its future products. Valid customers’ suggestions will be incorporated into the design of new products. Additionally, all Waja owners have been given a special telephone number to call if they have feedback to offer the factory.

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The period for the free pre-holiday inspection for Proton Waja owners is to be extended till December 17th 2000. Autoworld.com.my understands that USPD and EON are already informing their customers of this new deadline for them to bring in their cars for the inspection. A newspaper advertisement is also expected to appear in the Sunday papers.

The previous campaign period had run from November 27th till December 7th but due to the huge number of cars involved – over 8,000 units – it is believed that the service centres were unable to cope and an extension has therefore been provided. However, the Proton factory is not expected to offer inspection and rectification services for this extended period.

EON customers who require clarification can contact their hotline number 1-800-88-3003 or write to customerservice@eon.com.my.

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The aXcessaustralia One car was also a unique model in that no recognised carmaker was involved at all. It wasn’t determined by any design goal but was instead an extraordinary commitment to design a car around products and services offered to the project by each participating company.

Millard Design Australia had to turn the conventional design process inside out while products and manufacturing services provided had to be from existing technology or technology available within three to five years.

Design work first started in the second half of 1996 based on major components such as the engine, transmission and driveline. There were literally hundreds of initial concept drawings with five shortlisted and developed into 30% scale models.

The body design of the prototype used an exoskeletal, external frame one-piece composite construction to support all the body panels and doors. Its hollow carbonfibre frame was produced from a plastic-faced synthetic gypsum mould that used a unique system of expandable mandrels. At just 69 kgs, the composite structure was bolted and bonded to the steel sub-frame that carries the engine, transmission and suspension components.

The car had an air quality sensor which could maintain acceptable air quality within the car. If the air was polluted, the ducting would be automatically switched to recirculating air until quality improved.

Put the car’s gear selector to ‘Park’ and the handbrake automatically engaged on all four wheels. The Banksia parkbrake, manufactured by PBR Automotive used 60% less components than conventional systems. It also had a lightweight single shoe design.

Venture Asia Pacific produced 2 mm thick carbonfibre body panels that mirror sheet metal in fit and strength. The one-piece panels were easily removed to expose internal workings.

The doors used an interlocking clam shell system by Millard Design Australia. Four single-hinged opened and closed sequentially through sophisticated electronic and optical controls. The doors – hinged at the rear – were operated by electric linear motors which require no manual force.

The engine in aXcessaustralia one was a supercharged 2.3 litre, 2-stroke in-line six manufactured by Orbital Engine Corporation. Its dry weight was 120 kgs, approximately 75% of the weight of a conventional 4-stroke ‘six’.

The car was equipped with an ‘EV-Alert’ system patented by Vehicle Early Warning Systems Pty. Ltd. The system activated an LED pulsing amber light and audible warning when the car approached within 300 metres of hazards such as emergency vehicles, rail crossings …even accident black spots.

The adjustable steering was a novel system designed and patented by Steering Systems Australia. It had a lightweight column that used a compound tilt mechanism known as a ‘compound tilt’ which allowed for infinite adjustments on every plane.

VDO Australia was responsible for a extremely slim instrument cluster that weighed less than one kg and was just 58 mm thick.

The lights came from Hella Australia with a ‘state-of-the-art’ slimline combination design. This incorporated a clear lens turn indicator, a projector type low beam and halogen high-beam spot light. The interior mounted, centre stop lamp had an innovative LED system with low current draw, low voltage drop and even light distribution.

The mirrors, both inside and out, were also innovative. Made by Britax Rainsfords, the exterior ones (only 700 gms each) contained a temperature sensor, turn signal lamp and the antenna for the passive entry system. The interior mirror had photo sensors in front and at the rear that enabled it to self-dull in intense light.

Bosch Australia designed a voice control system able to recognise 35-40 verbal commands that activated functions including gear selection, temperature control, CD and radio station selection, to start and stop the engine – even open and close doors!

The aXcessaustralia one car is still in existence but used more for display purposes to inspire industrial students to join the automotive industry.

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The petrol internal combustion engine itself is an innovation and was developed by CMC Power Systems. Of 1.4 litre displacement, the all-aluminium engine (called a ‘Scotch Yoke’) is a horizontally-opposed 4-cylinder design which is exceptionally compact and light (75 kgs). The compactness comes not only from the layout but also having the crankshaft moving within a slot in the centre of the con-rod. This arrangement makes for improved combustion efficiency and efficient low-vibration operation. The engine is also suited for stop-start running that would be typical for a HEV. Maximum power from the engine is 60 kW(81.6 kW) at 5500 rpm. The engine is only used for generating electrical power which is stored in lead-acid double-impact gel-type batteries. The battery pack provides enough energy for the electric motor to run for 20 minutes continuously, but under normal operation, the batteries would be periodically recharged as the car is in motion.

One of the advancements in hybrid powertrain technology that is found in aXcessaustralia LEV is the use of Supercapacitors. Commonplace in telecommunications devices, supercapacitors have never been used in high-power applications until now. Those in the car were developed by CSIRO and use a carbon coating in an organic electrolyte to form what is termed a “double-layer capacitor”. This new technology is claimed to deliver some of the highest capacity-to-power ratios reported anywhere in the world and gives the aXcessaustralia LEV an unique advantage compared to other HEVs.

The energy storage system is unique and part of the Surge Power Unit (SPU) which includes the Supercapacitors. The SPU absorbs rapid bursts of energy created during braking and then provides the surge of power needed for acceleration. This means that even though the engine is small, it is more than enough for acceptable performance and also to run efficiently.

The energy is used to power the water-cooled 300V Electric Traction Motor (ETM) which uses a new switched reluctance motor technology that was specifically developed for traction applications. Torque is impressive – 300 Nm – while the available power is 110 kW (150 bhp), which would give the aXcessaustralia LEV respectable performance. With electronic systems, it can be programmed to have various characteristics and in the aXcessaustralia application, it is programmed to give a wide constant power characteristic, thus eliminating the need for a mechanical gearbox. In fact, there is no gearbox at all and the motor simply runs fast or slow, according to the pressure on the accelerator pedal.

It would be evident that power controllers take up a huge amount of space in the car. This is, however, due to the fact that the unit is the only one built and miniaturisation would be far too costly for the purpose. Nevertheless, if mass produced, the power controllers could be as small as a normal briefcase.

The water pump is also unique and extremely practical in design because it is not driven by a fan belt or the engine; it draws no horsepower and is draws operating power from the battery pack.

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Axcessaustralia LEV is an unusual concept car in that it was not developed by any automaker; it is, in fact, a ‘national car project’ for Australia and is the joint effort of Australia’s automotive components industry and the Australian government via its national research agency, CSIRO. The objective of such a project is to promote Australia’s component makers through a ‘rolling showcase’ that takes the form of a hybrid-electric car with an eye towards the future.

The aXcessaustralia LEV is actually a follow-up of the original aXcessaustralia concept car which made its debut in 1997. ‘aXcessaustralia one’, as the previous project is now called, was also intended as a showcase of Australian automotive technologies and brought A$730 million of new export business for the country. It was widely recognised as a shining example of government and industry collaboration (but without political undertones) that also demonstrated the technological excellence and competitiveness of the country’s automotive industry.

For aXcessaustralia LEV, a not-for-profit company known as aXcessaustralia Projects Ltd was established to manage the project which has 111 participants, all Australian companies or subsidiaries of global suppliers based in Australia. Funding to the tune of about A$12 million came from the Australian government, the figure matching the amount contributed by the participants.

ENVIRONMENT-FRIENDLY
While aXcessaustralia one was essentially a collection of components and technologies in an advanced design, the latest aXcessaustralia LEV addresses the issue of global warming in particular emissions of ‘greenhouse gases’. Australian suppliers aim to show, through the concept car, that they have advanced and ready-to-go technological and affordable solutions that can be used for future low emission vehicles.

Thus, aXcessaustralia LEV has a hybrid powertrain like Toyota’s Prius and Honda’s Insight. Hybrid electric vehicles (HEVs) are considered as being a practical (albeit transitional) solution to reducing vehicle emissions as they do not require much investment in additional public infrastructure; they can continue to use petrol supplies and also obtain electrical supply from domestic outlets. Because the aXcessaustralia LEV can be charged by an external source, it qualifies as a “second-generation” HEV under European definitions.

However, aXcessaustralia differs from the Prius and Insight in that it does not use its 1.4-litre petrol internal combustion (IC) engine – mounted under the boot – for propulsion. Only electric motor under the bonnet powers the front wheels and the IC engine is used to generate electricity for the batteries.

The batteries (situated under the rear seats) are specially-developed lead-acid types configured as a 60V pack optimised for HEV usage where they may spend considerable time partially discharged. As battery technology continues to evolve, particularly for HEV and EV use, the batteries in the aXcessaustralia LEV are not necessarily the final solution. However, at this time, they have been chosen because of cost and the use of ‘supercapacitors’ enables very high rates of energy absorption and delivery very quickly. The combined system is referred to as a Surge Power Unit and the batteries are said to be able to last as long as the car.

For any HEV to be considered acceptable, reasonable performance levels are important. The target for the aXcessaustralia LEV was to offer performance that would be comparable to a conventional car of equivalent size. Its top speed is claimed to be 140 km/h and it can accelerate from standstill to 100 km/h in 10 seconds. A full tank of fuel in the 32-litre tank can last for 600 – 700 kms, about 50% lower than conventional cars and the pollution levels are claimed to be 90% lower.

STYLING
The bodystyle was conceived by Radial Pacific and has the form of a 4-door semi-fastback with a rear glass window that pops open. About the size of a Nissan Sentra, it is not radical but looks like the sort of styling that would not be out of place for the rest of this decade. Combined with crisp and contemporary feature lines in its general styling, the car is a reflection of current studio trends.

The Australian theme was developed by examining the images and feelings of the country’s unique Great Barrier Reef. The aquatic greens, coral purples, blue lighting and coordinated features are truly a reflection of the Australian environment and provide one of the most initially striking features of the car. This scheme is reinforced by “wave and shell lines” plus “fish and fin” shapes which, although subtle, lend a peaceful feeling to the interior.

An interesting feature is the provision of a fixed sunroof on the rear section of the roof – nice for climates where sunshine is not as fierce as Malaysia but probably impractical here!

If you study the pictures closely, you will note that there are no door handles! The novel approach taken has been to use sensor technology and the doors are unlatched by pressing a pad in a depression on the window sill.

At the rear, a flap in the bumper provides access to the socket for plugging in a cable to charge the batteries. It is a standard socket and a normal 240V supply is acceptable. The fuel filler opening is also under this flap and about 300 mm from the electrical socket – which seems rather dangerous as sparks could ignite the petrol fumes.

LIGHT AND STRONG
With regard to safety, the aXcessaustralia LEV’s steel body – the whole car weighs 1,375 kgs – is said to use a proven crash-tested structure with steel panels formed in innovative low-cost tooling. Carbonfibre composite panels are used for the removable front sections and other panels. BHP’s “Bake Hardenable Steel” is used and this is said to have increased dent resistance with reduced thickness. It saves more than 25% of the weight in the car’s outer panels, a crucial saving to meet the performance targets.

But the car itself has never been crash-tested and does not meet Australian Design Rules. Not that it needs to since it is not meant to be a production car although any manufacturer that does like the design enough to want to produce it can acquire the rights for a price. As designed, it is estimated that a car like the aXcessaustralia LEV would cost around A$25,000 if mass-produced. The components are, however, fully compliant with international safety standards in both operation and manufacture.

The car has a 4-wheel disc brake system incorporating ABS mounted on a magnesium bracket. A unique park brake assembly has a single shoe design situated within the hat section of the rear rotors. The braking system also includes aluminium calipers and a world-first lightweight plastic vacuum canister.

To complement the exterior design and features of the aXcessaustralia LEV are unique two-piece light and strong wheels made from aluminium and magnesium. South Pacific Tyres supplied, designed and constructed the 50-series low-profile, low rolling resistance 6×18 tyres. These tyres were specifically designed to reduce rolling friction and so conserve energy without loss of adhesion.

G-Force Australia’s suspension stabilising system was used to enhance the inherent stability of the vehicle without compromising its design or implementation. The system ensures that the vehicle adapts easily to varying road conditions. A pendulum operation adjusts the car to spread the load to all four wheels which reduces roll and pitch.

INSIDE THE CAR
The interior of the car is also innovative with advances in information technology and telemetry. Three GPS navigation systems have been installed (because there are three different participants!) and the car has the necessary equipment to function as a mobile office. The audio system has an advanced speaker design and small monitors on the dashboard and behind the front seat head restraints can show movies from a DVD drive fitted inside the rear centre armrest.

The instrument cluster provides vehicle information for the driver and has a ‘‘black-face’’ system with integrated information systems using a scrolling menu display in addition to conventional information such as fuel, speed and state of charge. A sensor system located in the instrument cluster monitors the ambient external light and turns headlamps on and off as necessary.

Apart from the usual safety features, the car also has a device (developed by an Australian company, Compumedics) which determines driver alertness. Sensors in the driver’s seat and steering wheel detect the driver’s movements and grip. From feedback, it can be ascertained if the driver is alert and if not, an alert will sound. The system is a “live” system which can be set for the metabolism of different persons.

Autoliv supplied a number of safety items including the pretensioning, load limiting seat belts tuned to provide optimum safety together with the airbags. New Autoliv designed and made inflatable leg protectors assist the side airbags and front occupant air bags to keep occupants safe in a collision.

One of the problems facing HEV and EV design is the provision of air-conditioning which is expected by motorists these days. Conventional a.c. systems require a lot of power to operate and depend on engine power to run the compressor. With the aXcessaustralia LEV, an electric a.c. system is fitted, thereby overcoming the problem that has bugged engineers for a long time. Incidentally, the rack and pinion steering system also has electrically-powered assistance.

The aXcessaustralia LEV, which took 12 months to design and build, is being shown to manufacturers in many countries, including Proton and Perodua, and is expected to create A$1 billion in new export business.

Note: The contents of this article and all other articles, as well as all images, on this entire website are copyright and should not be reproduced without permission of the website owners. This message is especially directed at AutoAsia Online.

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After an unusually long period of negotiation, the purchase of HICOM’s stake in Proton by Petronas was finally completed on December 4th 2000. The transaction saw the transfer of HICOM’s 25.8% equity (comprising 25.13% held by Universal Trustees (M) Bhd for HICOM and HICOM’s own 0.69% equity) in Proton being sold to Petronas for RM981,015 million. This follows the agreement signed in March 2000. The price had been arrived at following negotiations with HICOM on a ‘willing buyer, willing seller’ basis and after taking into account the valuation report prepared by the independent valuer, Dresdner Kleinwort Benson, jointly appointed by the two parties in April 1999.

Additionally, Petronas also bought over another 1.37% equity in Proton which was held by Perecom Industries Sdn Bhd, a wholly-owned subsidiary of HICOM. This means that Petronas is now the single largest shareholder in the national car company with a total equity of 27.17%. It is likely that there will be a few top management changes with Petronas-appointed executives taking charge of Proton.

With no changes in the equity structure other than the change to Petronas, the other substantial shareholders are the government’s investment arm, Khazanah Nasional Bhd (17.96%); KWSP/EPF (11.02%); and Mitsubishi Motors Corporation/Mitsubishi Corporation (16.06%). Mitsubishi’s shares are held in equal parts through Citicorp Nominees (Asing) Sdn Bhd and Cartaban Nominees (Asing) Sdn Bhd.

In November, Proton itself had also completed the acquisition of Usahasama Proton DRB Sdn Bhd (USPD), taking over the 70% equity held by DRB-HICOM in the distribution company which was established in 1995. As a second distribution channel for Proton products, USPD was given the sportier models such as the Aerobacks, Satria, and Satria GTI to sell exclusively. It was also the distributor for the Citroen AX-based Tiara which is no longer being produced, and is jointly distributing the Waja with EON. It is believed that USPD will be renamed Proton Distribution or Edaran Proton in the near future and that a general manager from Proton will head the company.

The long-awaited acquisition of EON by Proton seems to be going nowhere as both parties have not been able to come to terms on the price. On its part, DRB-HICOM is not in a hurry to sell of EON which is a significant profit centre for the group.

Commenting on the move to sell Proton to Petronas, Tan Sri Dato’ Seri Mohd Saleh bin Sulong had emphasised that it was not because the DRB-HICOM Group wanted to get out of the automotive business. Far from it, in fact, as the present activities of its various motor-related subsidiaries indicate.

“It cost almost a billion ringgit to develop just one model – the Waja – and we felt that we just would not have the financial resources to take the national car company further,” he told AUTOWORLD.COM.MY in June. “We thought it was best in the national interest to let a financially stronger party take over Proton as its development may have become limited if we continued to hold on to it.”

Petronas’ official statement on the acquisition of Proton has been that this strategic investment will allow the national oil company and Proton to realise potential synergies in enhancing local expertise in automotive technology and further accelerate the integrated development of Malaysia’s automotive industry which is one of the cornerstones to the nation’s industrialisation programme. The collaboration will also provide Proton with a competitive edge especially with regard to engineering and technological resources as well as capability to place the national car manufacturer, and related supporting industries, in a stronger position to compete in the domestic and regional markets in the wake of mergers and consolidation of the automotive industry globally.


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