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Recognising that this is the millennium of electronic communications, Kah Motor Co Sdn Bhd, the official distributor of Honda vehicles, has established a website to communicate with its customers.

Officially activated today, the website www.kahmotorco.com offers visitors information about the latest models available locally as well as special promotions. Honda owners can also make appointments for servicing at the many Kah Motor Honda service centres and submit queries.

Additionally, the website has a large listing of Used Honda vehicles available at the Honda AutoFair and also accepts classified ads from owners wishing to sell their vehicles (Honda only!).

“We are opening this website to serve our valued customers 24 hours a day!” said Dato’ Robert Wong, JP, Group MD of Oriental Holdings. He said that it would enable people to get more information about Honda vehicles and services available without having to visit or phone a Kah Motor outlet.

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    Mention ‘TATA’ to a Malaysian motorist and his first thought will be either a bus or a lorry. But in India, TATA is a giant automaker and part of a group which has a turnover of US$8 billion annually. The automotive arm began business in 1954 when it signed an agreement with Mercedes-Benz, which accounts for the similarity of the TATA lorries to the older Mercedes ones. That collaboration ended in 1969 but by then, TATA had developed its own product development and engineering capabilities to make its very own 100% Indian vehicles.

    TATA has concentrated on commercial vehicles for much of its history and is among the top 10 commercial vehicle makers in the world today. It also makes multi-utility and sport-utility vehicles, with about 10% of production being exported.

    With its long experience, TATA ventured into making passenger cars to meet growing demand in the Indian market. Its first effort, which cost over US$500 million to develop, appeared last year in the form of the Indica, a 1.4-litre (petrol and diesel) hatchback about the same size as a Daihatsu Charade. In its first 12 months in the market, the Indica captured 8% share of the the Indian passenger car market. Exports will start next month with the first European markets being Italy, Spain and Portugal.

    Emulating the ‘bigger boys’, TATA has also come up with a 2-seat roadster concept called the Aria. It sits on the same platform – which has a 2400 mm wheelbase – as the Indica but has a smart and modern looking topless style. A more powerful engine with about 110 kW of power is proposed at this time.

    TATA chairman Ratan Tata has also hinted that over the next three years, the variants of the Indica will be forthcoming and will include a stationwagon, 3-box sedan and perhaps even a small 4WD (like the Kembara).

    Of the Aria, he said: “We will be delighted to offer the Aria if it manages to create enough excitement. We will closely monitor the reactions of the consumers and the international press to the concept to evaluate its business prospects.”


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    It’s been some two decades since a Ford of European origin has been on the price list of the Malaysian Ford distributor, AMIM Holdings Sdn Bhd. Back in the late 1970s, Ford decided that it would be in a more competitive position against its Japanese rivals if it also used products sourced from Japan. Thus, in place of the Escort and Cortina came the Laser and Telstar.

    While it was clear that twenty years ago, Japanese Fords had an edge in terms of fuel efficiency and technology when compared to their European equivalents, things have changed and today, some very fine products have been developed by Ford in Europe and one of the most significant is the Focus, which is the spiritual successor of the Escort.

    It is this model that AMIM Holdings is introducing in Malaysia to broaden its range for the new millennium. The superiority of the design and engineering of the Focus has been recognised by motoring journalists on both sides of the Atlantic as it has been ‘Car of the Year’ in Europe as well as North America. That suggests a ‘world-class’ product when you consider that European and Americans have rather different tastes in cars, the latter usually preferring large shapes.

    Also validating the strength and performance of the Focus is the choice of this model for the Ford team in the tough World Rally Championship. The team began its campaign last year and the Focus proved highly competitive and even won the gruelling, car-breaking Safari Rally on its first-ever attempt.

    For the Malaysian market, AMIM Holdings will be selling the 5-door hatchback version (there are also 4-door sedan, 3-door hatchback and stationwagon variants available in other markets), this bodystyle being favoured by Malaysian buyers.

    The Focus is powered by a 1.8-litre 4-cylinder ‘ZETEC’ engine with 16 valves and EFI. This efficient engine produces 85 kW (115 ps) of power at 5750 rpm and 158 Nm of torque at 3750 rpm to rocket the Focus to a claimed top speed of 198 km/h. Only a 5-speed manual transmission is available.

    Safety highlights of the Focus include four airbags (two in front and one each from the side of the each front seat), traction control, ABS and disc brakes all round. The rear suspension layout has passive steering capability to achieve more precise cornering, especially at higher speeds while a multi-link arrangement allows each rear wheel to react independently to bumps to get a smoother ride.

    The equipment which AMIM Holdings has put into this Ford is quite extensive and includes a high-tech security system, single CD player and large sporty 15-inch alloy wheels. Buyers who need still more sportiness can order the car with the optional RM11,500 RS (Rally Sport) package which has more aggressive bumpers, side skirts, a special grille and 16-inch alloy wheels.

    The Focus, which is imported as a Completely Built-Up (CBU) model, is priced at between RM128,000 and RM131,400, depending on the amount of insurance premium you have to pay. It may sound like quite a lot of money but have you checked the prices of the locally-assembled Toyota Corolla and Honda Civic lately?

    AMIM Holdings Managing Director Richard Canny says that the Focus is not intended as a replacement for the Lynx but is being brought in to ‘add excitement to the Ford range in Malaysia’. He adds that there are also no plans to assemble the Focus in Malaysia.

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    When people think of the recreation-oriented 4WD’s beginnings, they often think that the Mitsubishi Pajero was the one that started the trend. But it was actually the Isuzu Trooper that started the trend a couple of years before the Pajero was introduced in 1982. Of course, this excludes the Range Rover which, by virtue of being exclusive, was in its own class.

    Until the Trooper came on the scene, 4WDs had not been promoted as vehicles for daily urban use. The Land Rovers and Land Cruisers had all been marketed as workhorses and has comfort and style as low priorities. With the Trooper, businessmen discovered that they could use the vehicle for both work and pleasure, driving to construction sites in the day and going for dinner with the family at night.

    Like most of the big 4WDs, generation changes are slower than for passenger cars. But because of the long model life, each new generation is typically more advanced than its predecessor in all respects and addresses the expectations of a new generation of customers as well.

    The Trooper is now in its third generation and to keep its looks fresh, ACM, the distributor since the early 1980s, has introduced an updated model which includes a new engine. This generation had seen the inclusion of a more upmarket version known as the Citation which had a V6 engine and in place of the Citation, there is now the Bighorn.

    Cosmetic changes are evident in the grille which is bolder while the headlamps are now equipped with wipers. Spotlights are also incorporated in the bumpers. Incidentally, the fastest way to determine if it’s a new Trooper or a new Bighorn is to look at the finish: the new Bighorn has a two-tone colour scheme.

    The spacious interior is luxuriously equipped with leather upholstery as standard in the Bighorn (a RM7,000 option for the Trooper). Additional luxury touches include wood trim, illuminated vanity mirror, and a height- adjustable driver’s seat. The easily-read instrument panel now features a LCD display for the odometer and tripmeter. Cruise control is a standard feature which will be most appreciated on long journeys.

    One of the nice things about loading cargo into the Trooper/Bighorn is the split rear door, something which is not found on the newer 4WDs. For small items like groceries, you can just open the narrower door on the right side; if you have large items to put in, then the larger panel can also be swung open.

    Under the bonnet is a more powerful version of the all-aluminium 3.2-litre petrol V6 which has been used for some time. Internal improvements to the engine, now sporting a DOHC 24-valve cylinder head, have boosted power by 16% to 150 kW (205 ps) at a higher 5400 rpm and raised torque to 284 Nm at a lower 3000 rpm. The engine is ‘state of the art’ with self-adjusting tappets, direct ignitionand fully computerised engine management which looks after the multiport fuel injection system as well as other operations.

    The Trooper comes with only a 5-speed manual transmission while the Bighorn comes only with an electronic 4-speed automatic transmission. Both gearboxes are mated to a transfer case which has two ranges of gear ratios for extended off-road capabilities.

    New V6 3.2-litre engine has DOHC 24-valve cylinder head. Power output has been increased by 16%.

    Being a full-sized 4WD, the new Trooper/Bighorn drivetrain is the part-time type where you have to use a lever to engage 4WD when you want it. However, there is no need to manually lock the front hubs as that happens
    automatically. To provide greater stability in really slippery conditions, the rear axle is fitted with a limited-slip differential (LSD) which re-distributes torque to the opposite wheel if one side spins too much.

    The sturdy ladder frame chassis with seven crossmembers and box-section frame rails sits on independent front suspension (using double wishbones and torsion bar springs) and a simple but durable 4-link coil spring rear
    suspension.

    Safety is not overlooked in this 4WD and the features are comparable to a high-end sedan. It has disc brakes front and rear and also standard ABS. The ABS computer is specially programmed to operate more effectively in off-road conditions where the wheels bounce about much more and surfaces can be sandy and soft.

    The roll-over issue which was a great controversy in the US market in the mid-1990s was strongly challenged by Isuzu and this year, a court ruled that the publication which had reported that the Trooper (sold in the US) could easily tip over during sudden cornering had conducted its tests in an unrealistic manner. In reality, there were no significant statistics to show that the Trooper was unstable nor were there any related deaths.

    Basically, a 4WD is a tall vehicle and obviously you do not drive it like a Subaru WRX. It could tip over if you try going round a sharp corner very fast but if it does, that is not a design fault but your own lack of sensibility.

    Prices for the new Isuzus, both assembled at the AMM plant in Pekan, Pahang, have gone past the RM200,000 mark which pitches them against the latest Toyota Land Cruiser Prado. The new Trooper is RM204,292 while the new Bighorn is RM229,606.


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      Contributed by : Chan Eu Jin

      There are two categories in the All Japan Grand Touring Car Championship: GT500 (approximately 500hp) and GT300 (approximately 300hp). Complying with the technical regulation of the Japan Automobile Federation (JAF), the cars are greatly modified from the originals. To keep the battle close through every lap of every race, technical regulations were established to maintain equilibrium among each car’s capability. With minimum weight and air restrictors that the cars must be fitted with, performance is strictly controlled to keep the field closer together. Listed below are some of the regulations on the JGTC: -

      Engine
      The engine can be charged if it is the same make production engine. The position and installation of the engine are free in the engine as long as the original location and orientation are retained. The engines of most cars are installed so as to sit as low as possible, and as near to the center of the car as possible. Turbochargers may be fitted or removed.

      Air Restrictors
      Cars must be fitted with air restrictors, which are devices to control the intake air for the engine to maintain equal performance among the competitors. However, a well-tuned engine still has an output of a full 500 or 300hp.

      Brakes
      The type of braking system used is not regulated. However, anti-lock braking system are not allowed to be used.

      Tires
      Maximum width (complete wheel)
      · GT500 : 14” (359mm)
      · GT300 : 12” (305mm)
      Maximum diameter (compete wheel)
      · GT500 : 28” (711mm)
      · GT300 : 28” (711mm)

      Suspension
      One of the keys to the supremacy of speed in JGTC is a car’s suspension. The only regulation here is that the car’s original suspension configuration is to be used.

      Bodywork and Aerodynamic
      Any modifications to the bodywork must resemble the original panels as nearly as possible. The engine hood, trunk lid and car doors may be replaced by parts made of fiber-reinforced plastic or lightweight alloys. The width of the bodywork across the front and rear wheel arches can be increased by 5cm on each side. Front spoilers and rear wings are permitted. There are no restrictions regarding the materials to be used for making the spoiler or rear wing, but sizes for these components are controlled. The use of rear diffuser can be used as well.

      Drivers
      As JGTC is comprised of semi-endurance races, two drivers in turn take the wheel of one car. The maximum continuous time behind the wheel per driver is 1/3 of the race distance.

      Starting
      Races are started using the “rolling start” format. Car location on the starting grid is based on the order of the fastest to slowest qualifying times, front to rear of field, respectively. A formation lap is conducted with the field following behind a pace car. When the field has obtained proper form and spacing, the pace car leaves the track and the green light is given to start the race.

      Read also:

      Japan GT Festival in Malaysia
      The Race
      Visit the gallery More coming soon!

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        The qualifying session on the 24th June saw only 23 GT cars competed for the pole position under the hot tropical conditions. Although it was cloudy that afternoon, the track temperature rose to 48C and the ambient temperature to 38C. Different from usual championship races, two sessions were held with the GT500 and the GT300 combined format for 45 minutes respectively. It was sad that the Eclipse Taisan Viper GTSR could not participate due to problems with the car.

        At the end of the qualifying session, it was clear that Juichi Wakasika & Katsutomo Kaneishi of Team Mugen Dome Project are on course for their fourth consecutive titles when they grabbed the pole position for the Japan GT Festival race at the Sepang International Circuit. In the qualifying session, the duo driving a Takata Dome NSX in the GT500 class, set the fastest time of 2:00.523 and 2:00.426 in the first and second qualifying session respectively. The pair are the current leaders in the seven-round GT Festival with 36 points. Starting from second position in the grid are Osamu Nakako and Ryo Michigami of team Castrol Mugen NSX. 

        In the GT300 class, Team Racing Project Bandoh lead the pack during the first qualifying session with a time of 2:12.637 followed closely by Team RE Amemiya just 0.385 seconds behind. The position was reversed during the second qualifying session where Team RE Amemiya pushes an extra lap to set a respectable time of 2:12.629 effectively putting the team in the pole position of the GT300 class.
        Tetsuya Yamano commented that “The RX-7 is very stable on the high speed corners where we could take advantage. The hot conditions of Sepang are no problem for me. I’m comfortable, as if I were back in my hometown (laughs)”. His teammate Haruhiko Matsumoto praised the mechanics’ efficiency and that is was an important contribution to making it to the pole position.

        Malaysia’s foray into GT Racing through the Porsche Club Malaysia’s Carrera RS driven by Key Soon Yue and Ila Ridak proved to be behind the Japanese teams in terms of speed, professionalism and ability. The Porsche Club Malaysia team manages to clock in at 2:36.560 and 2:35.305 during the first and second qualifying rounds respectively.

        The Japan GT Festival race was finally flagged off on the 25th June in front of a staggering 30,000 spectators in Sepang. Ex-Formula One driver Ukyo Katayama of Japan proved that he is still a force to be reckoned with by helping his team Nismo win their first JGTC in the GT500 class title at the Sepang International Circuit. Katayama assisted by German Micheal Krumm finished the 54 lap endurance race in a time of 1’54:17.507. The 37-year-old Katayama who raced in the Formula One championship from 1992 to 1997 was pleased with the win here. He noted that the win here has also motivated him to do well in the seven round championships. 

        “After retiring from Formula One, I was less motivated and after this win here, I’m beginning to enjoy myself. This is also a good sign and it has put us in the right track,” said Katayama who added he is not harbouring any hopes of returning to Formula One.

        Michael Krumm, who won the 1997 GT Championship with Pedro de la Rosa took over the lead in the 42nd lap from Wakisaka – Kaneshi of Team Mugen Dome Project to blaze to the chequered flag. This despite the team started off badly and was down in eighth spot into the first turn but was back into contention as the race progressed. By the 36th of the 54 lap race, Katayama and Krumm were hot on the heels of leaders, Juichi Wakisaka and Katsutomo Kaneishi, who were in a Takata Dome NSX.

        The Takata Dome NSX outfit, pole sitters in the first three rounds in Japan, had a cracking start from the lead spot on the grid. They remained ahead of the rest until the 42nd lap when they had to surrender the lead to the Katayama and Krumm. At the chequered flag, they managed a second position with a time of 1’54:53.334. Third position goes to Daisuke Ito – Dominik Schwager of team Mobil 1 Nakajima Racing with a time of 1’55:01.085.

        In the GT300 class, the RE Amemiya Mazda RX-7 of Tetsuya Yamano and Haruchi Matsumoto proved superior to the Team Racing Project Bandoh Toyota Celica of Shigekazu Wakisaka and Takahiko Hara when it took first place with a time of 1’55:19.155. The team controlled the race from the start with principal challengers coming from The Wedsport Toyota Celica of Takahiko Hara and Shigekazu Wakisaka and Team Cusco Subaru Impreza of Tatsuya Tanigawa and Katsuo Kobayashi. However, both of them dropped down the field due to problems with the car and an accident!

        At the end of lap 54, The Team Racing Project Bandoh Toyota Celica manages a second position with a time of 1’56:04.116. The Super Autobacs Racing Team’s Toyota MR-S driven by Yukihiro Hane and Tsunefumi Hioki clocked in at 1’56:24.033 in third place.

        This JGTC special stage in Malaysia saw 2 teams obtaining DNFs. Team Impul’s Calsonic Skyline GT-R driven by Kazuyoshi Hoshino and Satoshi Motoyama only manages to complete 13 laps before retiring to the pits permanently. This is followed by Toyota Team Cerumo’s Supra driven by Masahiko Kondo and Yuji Tachikawa 11 laps later.

        Perhaps, the most disappointing aspect of the race was when the Eclipse Taisan Viper GTSR only manages to run 3 laps for the spectators to catch a glimpse of it. The Viper GTSR was initially scheduled to race but a missing container with the engine inside was misrouted en route to Malaysia. The engine was only recovered back on the afternoon of race. However, the Viper nonetheless treated the spectators to a magnificent run. 

        Although this race was only a demonstration race, the packed grandstand at the Sepang International Circuit should convince the organizers they have found a second home for the JGTC event. While a full turnout have reflected the JGTC’s potential in Malaysia, the fact that it’s cheaper to host the race in Sepang should also be a factor to host a round of the JGTC here every year. Perhaps, we will also see the Nippon F3000 races migrating to Malaysia. Fingers crossed everyone.

        by -

        When Malaysian Truck & Bus Sdn Bhd (MTB) signed a Memorandum of Understanding (MoU) with Isuzu Motors Ltd of Japan for the development of a Malaysian National Commercial Vehicle (NCV) in May 1996, the Malaysian and regional economy was in top gear. The future looked good and sales were rising rapidly. Adaptation of a popular Isuzu model, was carried out briskly and it was envisaged that 1,500 units a month would be a realistic volume.

        But the dark clouds of economic havoc that started in Thailand blew south by the end of 1997, just as the first Malaysian NCV – the Hicom Perkasa – was due to be launched. Nevertheless, the company went ahead and officially introduced the model to a rapidly declining market. That year, MTB turned out 3,355 Perkasas… but only 625 were sold.

        The following year, the worst for the Malaysian auto industry, saw MTB drastically cutting back on production – to just 493 units for the whole year. Though the commercial vehicle sector was essentially ‘dead’, 1,323 units were sold for a 28% share in the light-duty segment.

        Last year, as the glimmer of recovery started to appear, demand rose again and MTB sold almost double the volume of 1999. While production of the other makes from the same plant remained low, output of the Perkasa was stepped up and accounted for 62% of the 3,549 vehicles (which included 4WDs like the Mitsubishi Pajero and Isuzu Trooper and also Mitsubishi vans) that rolled out of MTB in 1999.

        “It was a very tough way to start,” recalled MTB’s General Manager of the Product & Marketing Division, Abdul Harith bin Abdullah. But like the rest of the management team, he took it philosophically and feels the experience was useful ‘training’ for the tough competition that is expected when AFTA (the ASEAN Free Trade Area) comes into being by the middle of this decade.

        Although the Hicom Perkasa is a significant model for MTB, its activities also include contract assembly of as many as 16 different models with 55 variants from customers that include Isuzu, Mitsubishi, TATA, Iveco and Pinzgauer.

        MTB, which has a total investment cost of RM272,770 to date, was actually a spin-off from the original AMM factory in the Peramu Jaya Industrial Estate near Pekan, Pahang. In 1994, it was created when the former Hicom Commercial Vehicles Sdn Bhd bought over a part of the DRB-Hicom-owned AMM plant, then 11 years old. The aim was to separate production for more efficiency; AMM would concentrate on passenger cars and light pick-ups, while MTB would do the ‘heavy stuff’ plus 4WDs and other commercial vehicles.

        With assistance from Isuzu Motors of Japan, which also took on a 20% equity in MTB, the production facilities were upgraded to a multi-model system with the aim of creating the most advanced manufacturing facility in Malaysia having a maximum capacity of 60,000 units (on two shifts). It was also clear that the long-term plan for MTB should be to become a regional vehicle assembly hub.

        The capabilities of MTB obviously impressed the Prime Minister who urged MTB, to come up with a NCV. The obvious technical partner was Isuzu which already had a close association with the DRB-Hicom Group going back to the early 1980s.

        “Basically, we started off with the Isuzu NHR model and made changes to the front end and doors. The bigger effort was in maximising localisation of parts, including stamping of panels,” explained Encik Abdul Harith. The efforts have paid off because the Perkasa has 465 locally-made components or 50.35% according to the definition of the Local Material Content Policy. Within the next three years, the aim is to reach 80%.

        But while the Perkasa has ‘national vehicle’ status, it does not have the same sort of advantages as national cars because all commercial vehicles (chassis-based type) are not subject to import duty nor excise duty. “So there was nothing extra we could ask from the government,” he said, but MTB does have an investment tax allowance incentive.

        In spite of the severe downturn of 1998, when turnover fell almost 70% to just RM35 million, MTB did not abandon the NCV although it engaged in many cost-cutting measures. Neither did it lay off staff although it did reduce their pay by half during the months that the plant did not operate.

        “We did not want to create more problems for our workers by having a retrenchment exercise but we did have to find ways to reduce our fixed costs,” explained DRB-Hicom Chairman Tan Sri Dato’ Seri Mohd Saleh bin Sulong. “So what we did was to work for one month, close for two months and then resume in the fourth month, which made sense because one month’s output was enough to last for three months.” Manpower levels
        were reduced slightly as some workers found other jobs but DRB-Hicom’s responsible initiatives ensured that the general livelihood of people in the area was not hit so badly. Its efforts were commended by the state Menteri
        Besar, Dato’ Sri Adnan Yaakob, who pledged continued support for the company in its efforts to develop the industrial estate further.

        With the bigger objective of becoming a regional player along with AMM, efforts were stepped up to sell the Perkasa overseas. To date, the number of units actually shipped has not been big – just over 200 units in total – but there are signs that demand will grow quickly in coming years because the Perkasa is recognised as being good value for money.

        Of great interest is the Australian market where the Perkasa is presently undergoing testing to determine compliance with the tough Australian Design Rules (ADRs). According to Encik Abdul Harith, the vehicle has passed in all areas except fuel tank integrity after being dropped from 10 metres. MTB is making the necessary modifications to meet the requirements and ADR certification should be obtained soon.

        While many other parties in the Malaysian automotive industry are apprehensive about AFTA (and would even prefer to postpone it), MTB declares itself ready for the challenges. It is confident because it believes that it can become a significant commercial vehicle producer in the Asia-Pacific region through strategic alliances, particularly with Isuzu.

        Even though Isuzu has a big operation in Thailand, that factory is under the control of Mitsubishi Motors which is also a shareholder. The Indonesian operation is relatively small and geared towards MPV-type models which leaves MTB as the best facility for Isuzu to make use of. Logistics are also good with the nearby Kuantan port located adjacent to the shipping lanes across the South China Sea.

        “We are well positioned in the region and it is already in the plan that Isuzu will use MTB as a production base for certain types of models,” said Encik Abdul Harith.

        While MTB would focus on promoting the Perkasa since it manufactures the model, it is also having discussions with other companies to choose it as a regional re-export centre for the Asia-Pacific region. AMM is also aiming to position itself in a similar manner to become a platform for the export of variety of makes and models. Thus, the DRB-Hicom Group (and the Pahang government) is hoping that the Peramu Jaya Industrial Estate will become similar to Thailand’s automotive hub at Rayong which, coincidentally, is also on that country’s eastern seaboard.

        DRB-Hicom’s substantial focus on developing its automotive business indicates its strong desire to not only remain in the business but also continue to be a leader even after selling off Proton. As Tan Sri Mohd Saleh has explained, the main reason for selling off Proton is because DRB-Hicom does not have the greater financial resources required to take the national car company further. Letting Proton go and undertaking a restructuring will enable DRB-Hicom to become leaner and more competitive in preparation for AFTA.

        by -

        When Malaysian Truck & Bus Sdn Bhd (MTB) signed a Memorandum of Understanding (MoU) with Isuzu Motors Ltd of Japan for the development of a Malaysian National Commercial Vehicle (NCV) in May 1996, the Malaysian and regional economy was in top gear. The future looked good and sales were rising rapidly. Adaptation of a popular Isuzu model, was carried out briskly and it was envisaged that 1,500 units a month would be a realistic volume.

        But the dark clouds of economic havoc that started in Thailand blew south by the end of 1997, just as the first Malaysian NCV – the Hicom Perkasa – was due to be launched. Nevertheless, the company went ahead and officially introduced the model to a rapidly declining market. That year, MTB turned out 3,355 Perkasas… but only 625 were sold.

        The following year, the worst for the Malaysian auto industry, saw MTB drastically cutting back on production – to just 493 units for the whole year. Though the commercial vehicle sector was essentially ‘dead’, 1,323 units were sold for a 28% share in the light-duty segment.

        Last year, as the glimmer of recovery started to appear, demand rose again and MTB sold almost double the volume of 1999. While production of the other makes from the same plant remained low, output of the Perkasa was stepped up and accounted for 62% of the 3,549 vehicles (which included 4WDs like the Mitsubishi Pajero and Isuzu Trooper and also Mitsubishi vans) that rolled out of MTB in 1999.

        “It was a very tough way to start,” recalled MTB’s General Manager of the Product & Marketing Division, Abdul Harith bin Abdullah. But like the rest of the management team, he took it philosophically and feels the experience was useful ‘training’ for the tough competition that is expected when AFTA (the ASEAN Free Trade Area) comes into being by the middle of this decade.

        Although the Hicom Perkasa is a significant model for MTB, its activities also include contract assembly of as many as 16 different models with 55 variants from customers that include Isuzu, Mitsubishi, TATA, Iveco and Pinzgauer.

        MTB, which has a total investment cost of RM272,770 to date, was actually a spin-off from the original AMM factory in the Peramu Jaya Industrial Estate near Pekan, Pahang. In 1994, it was created when the former Hicom Commercial Vehicles Sdn Bhd bought over a part of the DRB-Hicom-owned AMM plant, then 11 years old. The aim was to separate production for more efficiency; AMM would concentrate on passenger cars and light pick-ups, while MTB would do the ‘heavy stuff’ plus 4WDs and other commercial vehicles.

        With assistance from Isuzu Motors of Japan, which also took on a 20% equity in MTB, the production facilities were upgraded to a multi-model system with the aim of creating the most advanced manufacturing facility in Malaysia having a maximum capacity of 60,000 units (on two shifts). It was also clear that the long-term plan for MTB should be to become a regional vehicle assembly hub.

        The capabilities of MTB obviously impressed the Prime Minister who urged MTB, to come up with a NCV. The obvious technical partner was Isuzu which already had a close association with the DRB-Hicom Group going back to the early 1980s.

        “Basically, we started off with the Isuzu NHR model and made changes to the front end and doors. The bigger effort was in maximising localisation of parts, including stamping of panels,” explained Encik Abdul Harith. The efforts have paid off because the Perkasa has 465 locally-made components or 50.35% according to the definition of the Local Material Content Policy. Within the next three years, the aim is to reach 80%.

        But while the Perkasa has ‘national vehicle’ status, it does not have the same sort of advantages as national cars because all commercial vehicles (chassis-based type) are not subject to import duty nor excise duty. “So there was nothing extra we could ask from the government,” he said, but MTB does have an investment tax allowance incentive.

        In spite of the severe downturn of 1998, when turnover fell almost 70% to just RM35 million, MTB did not abandon the NCV although it engaged in many cost-cutting measures. Neither did it lay off staff although it did reduce their pay by half during the months that the plant did not operate.

        “We did not want to create more problems for our workers by having a retrenchment exercise but we did have to find ways to reduce our fixed costs,” explained DRB-Hicom Chairman Tan Sri Dato’ Seri Mohd Saleh bin Sulong. “So what we did was to work for one month, close for two months and then resume in the fourth month, which made sense because one month’s output was enough to last for three months.” Manpower levels were reduced slightly as some workers found other jobs but DRB-Hicom’s responsible initiatives ensured that the general livelihood of people in the area was not hit so badly. Its efforts were commended by the state Menteri Besar, Dato’ Sri Adnan Yaakob, who pledged continued support for the company in its efforts to develop the industrial estate further.

        With the bigger objective of becoming a regional player along with AMM, efforts were stepped up to sell the Perkasa overseas. To date, the number of units actually shipped has not been big – just over 200 units in total – but there are signs that demand will grow quickly in coming years because the Perkasa is recognised as being good value for money.

        Of great interest is the Australian market where the Perkasa is presently undergoing testing to determine compliance with the tough Australian Design Rules (ADRs). According to Encik Abdul Harith, the vehicle has passed in all areas except fuel tank integrity after being dropped from 10 metres. MTB is making the necessary modifications to meet the requirements and ADR certification should be obtained soon.

        While many other parties in the Malaysian automotive industry are apprehensive about AFTA (and would even prefer to postpone it), MTB declares itself ready for the challenges. It is confident because it believes that it can become a significant commercial vehicle producer in the Asia-Pacific region through strategic alliances, particularly with Isuzu.

        Even though Isuzu has a big operation in Thailand, that factory is under the control of Mitsubishi Motors which is also a shareholder. The Indonesian operation is relatively small and geared towards MPV-type models which leaves MTB as the best facility for Isuzu to make use of. Logistics are also good with the nearby Kuantan port located adjacent to the shipping lanes across the South China Sea.

        “We are well positioned in the region and it is already in the plan that Isuzu will use MTB as a production base for certain types of models,” said Encik Abdul Harith.

        While MTB would focus on promoting the Perkasa since it manufactures the model, it is also having discussions with other companies to choose it as a regional re-export centre for the Asia-Pacific region. AMM is also aiming to position itself in a similar manner to become a platform for the export of variety of makes and models. Thus, the DRB-Hicom Group (and the Pahang government) is hoping that the Peramu Jaya Industrial Estate will become similar to Thailand’s automotive hub at Rayong which, coincidentally, is also on that country’s eastern seaboard.

        DRB-Hicom’s substantial focus on developing its automotive business indicates its strong desire to not only remain in the business but also continue to be a leader even after selling off Proton. As Tan Sri Mohd Saleh has explained, the main reason for selling off Proton is because DRB-Hicom does not have the greater financial resources required to take the national car company further. Letting Proton go and undertaking a restructuring will enable DRB-Hicom to become leaner and more competitive in preparation for AFTA.

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