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Brand new model powered by a brand new engine coming from a brand new factory. This is definitely one of the most significant milestones in Proton’s history and an achievement which can be said to be on a higher level than the launch of the Waja. In fact, the Waja was probably more of a ‘dry run’ for Proton’s capabilities and with the new Gen.2, Proton is clearly ready to go to battle.

The development of the Gen.2 began in August 2000, around the time the Waja was launched. While Malaysians were excited over the arrival of an entirely new Proton model, the Gen.2 team in Vehicle Program B put together their proposals and presented four full-scale clay models to the management. From the outset, the plan was to have a 5-door model and over 12 months, the chosen design was refined by a team headed by Damien Chia, a Malaysian designer who was challenged by Proton’s CEO to break away from ‘boundary thinking’.

It must have been a dream come true for Damien because he could depart from convention and propose a new styling direction for Proton, just as Chris Bangle has done with BMW styling. With the Gen.2, the stylists took a fresh approach to how surfaces would look and chose deeper concave lines and shoulders for a masculine and aggressive look. That the Gen.2 would be a sporty sort of car meant they could have a narrower focus in the styling since it would be targeted at a specific group of younger buyers.

“It’s a car that has been specifically designed to appeal to young families, in line with Proton’s long-term objective of creating cars to meet with the pre-requisites and expectations of specific target groups,” explained Damien, who is confident that the looks will evoke emotion in buyers.

“What we essentially set out to do was to break from the tradition of building one ‘safe design’ for everyone,” he added. This means that Proton will be niche-oriented and in doing so, be able to provide more appealing products to different segments of the market.


EXTERIOR
The present Proton corporate face can be traced by to the Iswara of the early 1990s and in some ways, it is retained but re-interpreted for a new decade. Not forgetting the Malaysian roots of Proton, the stylists drew inspiration from the wau (the Malay kite) and also the handle of the keris when they shaped the front grille. This is the new face of Proton and it is bold as well as distinctive.

“You’ll see this face evolving in appearance, size and presence, depending on the target market of individual products,” said Damien.

Little details count and a lot of attention was given to all areas of the car. For example, the door handles were the subject of many hours of work to produce a classier sort of design which was also functional.

Dimensionally, the Gen.2 is about the size of the Wira Aeroback (which it does not replace, contrary to what has been expected) and it is among the wider cars in its class at 1725 mm. The sleek shape, which has been compared to the Renault Megane but also looks a bit like the Honda Insight, has a Cd of 0.33 and can drop to 0.30 with a spoiler.

The development period for the Gen.2 was speedier than the Waja – 1 million man-hours versus 1.7 million man-hours – because a lot of experience had been gained in developing the earlier model but more importantly, the same versatile platform was adopted. This meant that more time could be spent on the body as the platform was already done and what was needed in that area was tuning.

When it came to body structure, the aim was to achieve the same sort of stiffness as German products (BMW was mentioned). Extensive use of computer aids was made and the result is a bodyshell which is claimed to be very stiff – double that of any present Proton – and able to offer optimum occupant protection. It meets international crash standards and the effectiveness of the design was confirmed by actual crash tests of 15 prototypes in Australia.

The quest for stiffness has meant that the Gen.2 is not a light car and at 1175 kgs, it is 10 kgs lighter than the bigger Waja, and heavier than its rivals. The aeroback design has also contributed to the weight as the large glass sheet at the back is heavy.

THE CAMPRO ENGINE
But the engineers were not discouraged by the weight factor because they would be having a brand new engine under the bonnet and one which was Proton’s own. This is the CAMPRO engine which was the subject of a RM500 million program and involved 200 engineers. The engine program was run concurrently with the Gen.2 program and prototypes were driven over more than 27,000 hours in Sweden, Spain, Australia and of course, Malaysia.

The first representative of the CAMPRO family is coded ‘54PH’ and is a 1597 cc 4-cylinder DOHC 16-valve unit. This long-stroke engine has a cast iron block and has been designed as a modular unit, which means variants can be developed using similar parts such as pistons and blocks, thereby lowering costs. In fact, by having its own engine, Proton is believed to have cut its engine costs by 44%, an important saving to make it more competitive.

The 54PH engine, which is just 581 mm long, delivers 82 kW/110 bhp of power at 6000 rpm and 148 Nm of torque at 4000 rpm on a compression ratio of 10:1. Careful tuning has given it linear torque progression to complement the high-revving character. On paper, it looks like a class leader with a specific power output of 70 bhp/litre of displacement and as Azhari Che Hassan, the leader of the CAMPRO team pointed out, this has been achieved without using a variable valve timing mechanism. So imagine what could be obtained when they offer a future engine with such additional features?

“Actually we have completed development of a more powerful version and it won’t be long before it will join the line-up,” he revealed, adding that it will have the Lotus-developed Cam Profile Switching technology (that is where the CAMPRO name was derived from) which is said to be conceptually like a variable valve timing system. A source said that the power output from the same displacement could be increased by 18% at least.

Performance is one thing but to the average motorists, maintenance costs are also important. In this respect, the engine has been designed for oil change intervals every 10,000 kms, instead of the usual 5,000 kms. Over the longer term, its service life is claimed to be good for 250,000 kms and no major overhaul should be needed for 10 years under normal usage.

Proton’s own engine management system is used and this is the EMS700. It incorporates a diagnostic tool which will enable quicker trouble-shooting and as it is Proton’s own component, there will be the possibility of customizing programming to suit market needs. This is something which Proton has not been able to do with the older models as the engine management system has come from Mitsubishi Motors as a ‘sealed box’ and to ask for reprogramming has been expensive.

Proton did not forget about the environment in developing the CAMPRO engine and it not only meets prevailing Malaysian emission control standards which are at Step-2 but can easily meet the tougher Step-3 and Step-4 requirements which are already applied in Europe. A clean and economical NGV version using gas is also under development and will be offered in the near future, but there are no plans for a turbodiesel.

The Gen.2 will come with manual 5-speed and automatic 4-speed transmissions, the latter to be available only in about two months time. Little is know about these units but they come from Mitsubishi Motors. According to Tengku Mahaleel, making its own transmissions would be too costly for Proton as very high volumes are needed. As there are many specialists in transmissions around the world, it is more cost-effective to buy from them. The extra cost in buying this item from others is not significant but the savings on the engine are: up to 40% savings or RM150 million annually.

CHASSIS
In chassis design, Proton can proudly proclaim itself to be above average, thanks to having Lotus Engineering. The Gen.2 benefits from a chassis that has already been in use for some three years and proven to be a competent platform. It is the same as the Waja’s and even shares the same wheelbase but extensive reworking and tuning has been done so it is not merely a Waja chassis with a different body.

The front suspension uses those universal MacPherson struts with coil springs and shock absorbers, both sides tied by a direct-acting stabilizer bar. Unlike the Waja front suspension, the Gen.2’s has a new dual-path mounting concept to separate the load path of the spring from the load path of the shock absorber. This has meant that instead of a single rubber bushing to support the car and isolate noise, there are now two separate elements to give better impact absorption and eliminating damper lag in extreme conditions.

The rear suspension layout is described as a multi-link arrangement and basically has a transverse link to each wheel coming off a strong subframe under the rear-end. The multiple links hold the wheels in a specific geometry by acting or reacting against different forces during cornering. It looks simple but there’s actually a complex relationship to be managed and Proton’s engineers have enough understanding to make it all work very effectively.

Each wheel has a 15-inch disc brake as standard, and the provision of disc brakes on the rear wheels is something which goes back to the Wira days. The front ones are ventilated while the rear are solid. Factory ABS is available but only on the high-line version which will cost more and be available later on. The ABS includes EBD (Electronic Brakeforce Distribution) which ensures that braking is always balanced between front and rear, whatever the load carried.

INTERIOR
Simplicity, stylishness and sportiness were the elements Proton’s interior designers, led by Head of Design (2) Zafruddin Shamsuddin, set out to achieve when they began to create the Gen.2’s cabin. The theme was ‘Lotus Inside’ and this meant that they had to incorporate ‘Lotus DNA’ – essentially a sporty ambience – inside.

It is for this reason that the cabin of the Gen.2 looks light years ahead of the old Proton generation of cars. It starts from the front – the dashboard – where minimalism is apparent and function takes precedence over form. Everything is neatly clustered with audio system and ventilation controls running down the middle section. Circular meters, set deeply, bring the elegance of a chronograph presentation which is typical of sportscars, Installed as standard on all versions is a simple tripcomputer which provides information on average fuel consumption (in litres per 100 kms), distance to empty tank and journey time (from firing up the engine).

Employing SAFEWORK, the latest in 3D and virtual ergonomics software, the interior designers were able to take things to the next level of sophistication. The dashboard itself has been made less bulky, freeing more space for the occupants. However, in the process, the glovebox has been omitted though a wide shelf is available on both sides of the dashboard.

Storage space is best described as ‘modest’ even though Proton says it is generous. There are small pockets in the front doors, a console box between the front seats and a cupholder (which will probably be used for coins), a namecard holder behind the vanity mirror on the sunvisor and a sunglass holder. If there is any area of the cabin which leaves something more to be desired, it would be storage.

To emphasise the sporty nature of the car, the seats have been given a one-piece racing style with a fixed headrest (in the old days, such seats were called ‘tombstone seats’!). They have been designed for good ergonomics and provide support in all the important areas when the owner drives the Gen.2 in the manner it begs to be driven – a spirited manner!

In the basic version (the only one you can get for now), the Gen.2 has seatbelts with pre-tensioners to limit forward movement of the body during a collision. No airbags are offered but this doesn’t mean they are not available. On the extra-cost high-line version, dual SRS airbags will be available so it is a matter of paying more for the extra level of safety, if a buyer requires it.

Measuring 1858 mm in length, the cabin is 33 mm longer than that of the Wira. The use of the Waja wheelbase has meant that people inside enjoy more legroom. According to Zafruddin, the interior space complies with internationally recognized ergonomic standards for cabins, based on global posture statistics. 95% of occupants of average size and up to 1.88 metres (6ft 2 ins) tall will be comfortable in the front seats; 80% of occupants of average size, up to 1.75 metres (5ft 9ins) will be happy in the rear seats and 50% of occupants of average size, up to 1.65 metres (5ft 5ins) will feel comfortable in the middle of the rear seats. As can be seen, the heights are more than the average Malaysian so it is definitely spacious.

The boot volume is 415 litres which is some 22% more than what is available in the Wira Aeroback and the same as the Waja. The boot floor can be extended for longer objects as the backrests (divided in 60:40 ratio) can be folded down and will be completely flat because the seats flip forward. There is some storage space around the boot and under the floor is a compact space-saver spare tyre which is meant only for emergency use.

SECURITY
The Proton Wira has been a very popular model and a best-seller and also No. 1 in the stolen car list. It is inevitable that the most popular models will be much sought-after by thieves and intent on preventing the Gen.2 from gaining this unwanted ‘honour’, Proton has made the new model harder to steal. An engine immobilizer complements the security system which meets the stringent Thatcham criteria. Additionally, the CAPTOR vehicle tracking system is also incorporated so that a stolen vehicle has a higher chance of being recovered. Additional features of the system include a fuel-cut and carjack panic switch.

BUILD QUALITY
Proton has world-class capabilities in design and engineering and no one will argue about that fact. However, the problem that has dragged Proton down, especially in the eyes of the Malaysian public, has been build quality. It hasn’t been performance or design, just the inconsistent quality of the cars being delivered.

In some ways, some of the quality issues are due to the use of older manufacturing processes that date back to the 1980s when the factory was built. Some of the suppliers are also to blame because they make the components and when something like a power window fails, people don’t necessarily blame the supplier (whom they may not even know about) but they blame Proton.

Tengku Mahaleel does not deny that Proton’s cars have faults, a position which differs from that which he had when he launched the Waja. At that time, he believed that the switch to modular assembly would bring about a quantum leap in build quality, besides cutting costs, and in theory, it should have. Well, it would seem that a lot of lessons have been learnt and this time round, he is more guarded in how he talks about quality, even acknowledging that there could be faults in the early builds. This is not unusual and even the best manufacturers will have some problems with early builds of new models.

But what is different this time is that there is a brand new factory to build the Gen.2 and this facility has been designed with the latest processes that will bring about higher and more consistent build quality, greater efficiency and higher productivity.

Automation, with some 180 robots, is 60% compared to 30% at the Shah Alam plant. Complementing this increased level of automation is a 3-stage line inspection process for quality assurance. The first is static evaluation on fitting and appearance of exterior and interior areas of each car as it comes off the line. This is followed by a dynamic evaluation on the function and driveability, after which there is a final inspection before the cars are deemed ready and fit for delivery to customers.

“Even then, our process to ensure that a high-quality car reaches the customer does not end,” he said. “Besides the usual Pre-Delivery Inspection (PDI) procedure at every dealer, we have formulated a 120-point form which a customer will go through with the salesman at the time of delivery. Only when the customer is satisfied should he or she sign this form.”

Responding to problems more quickly has also been promised and the job of resolving problems is being given to regional heads. No longer should there be delays due to the lengthy process of referring everything to the head office. Special technical teams have also been established which will be sent to any dealer who has cars with difficult problems.

Incidentally, besides the extra-long factory warranty, the Gen.2 also comes with a 10-year anti-corrosion warranty, thanks to the use of galvanized steel in many areas and advanced anti-corrosion treatments at the new factory. Of course, customers will be required to periodically present their cars to an authorized service centre for inspection in order to keep the warranty valid.

THE FINAL WORD
The Gen.2 is clearly a car that is very different from past mainstream Protons, with the exception of the Waja. It is the first of a family of cars which will number at least 20 during this decade (another two are due this year and they will be even more exciting). No longer having to clone models of other manufacturers and no longer having to depend on others for the ‘heart’ of the car, Proton is ready to face the competition on a level playing field.

“Suffice to say that with our new and diverse range of models to come, people will have difficulty believing they are Protons. If there was a problem in the perception people had of Proton cars in the past, it was that our products were essentially evolved from Mitsubishi products. As we move away from such an association with Mitsubishi products, we will need that ‘wow factor’ in our own products to clearly establish Proton as a brand in its own right,” said Tengku Mahaleel. “With the new Gen.2, we are out to do not only that but also make a lasting impression.”

GEN.2 PRICES (without insurance, P. Malaysia)
GEN.2 1.6 MANUAL – RM52,888
GEN.2 1.6 AUTOMATIC – RM55,888

The movie – View the 360 degree Interior


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    “The ultimate engineering and design statement” – that’s how Chrysler describes its latest concept car, the ME Four-Twelve. The quad-turbo, mid-engined supercar is one of the most closely-guarded secrets of the company and even within the organization, not many knew of its existence.

    According to Trevor Creed, Senior Vice President – Chrysler Group Design, the idea for this machine was conceived as a spectacular follow-up to the Dodge Tomahawk shown last year. “The big difference is that Tomahawk was a design statement; ME Four-Twelve, however, is as much an engineering statement as it is a design statement,” he said.

    The ME Four-Twelve may also set a record for lightning quick development, having taken less than one year to complete from start to finish.

     

    At the heart of the ME Four-Twelve is its all-aluminium, quad-turbo, 6.0-litre V12 engine. With electronic sequential multipoint fuel injection and a 9:1 compression ratio, the AMG-developed engine delivers 625 kW/850 bhp at 5750 rpm, with an incredible 1150 Nm of torque between 2500 and 4500 rpm! The specific power output translates to 104.4 kW(142 bhp)/litre, and with a curb weight of just 1310 kgs, the ME Four-Twelve sets new performance records and new benchmarks in the supercar class.

    And, befitting a machine that will play comfortably in the supercar league, the claimed performance is stunning. In projections and modeling, the ME Four-Twelve goes from 0-60 mph (96.6 km/h) in 2.9 seconds; 0-100 mph (160 km/h) in 6.2 seconds; and it will blister through the quarter mile in 10.6 seconds at 227 km/h. The estimated top speed of the ME Four-Twelve is 400 km/h.

    The vehicle is designed and packaged to achieve outstanding thermal performance under extreme operating conditions. Its large capacity, high-efficiency engine-cooling system allows this engine to retain optimum thermal performance – a key advantage in the super car arena.

    The 7-speed Ricardo Double Clutch Transmission was developed specifically for this vehicle and features the latest double wet-clutch technology and electronic control strategy. This exclusive transmission can deliver uninterrupted torque to the rear wheels with 200 millisecond shift times.

    The ME Four-Twelve’s advanced, carbon fibre bodywork was designed to mate to a carbon fiber and aluminium honeycomb monocoque tub. Aluminium crush structures and chrome-moly subframes complete the rigid support structure.

    Taking advantage of its impressive racecar-like structural rigidity, the ME Four-Twelve’s suspension, steering and brakes are engineered for supercar performance. Overall, the vehicle’s structure – using multiple materials – achieves an ultra-lightweight design with outstanding vehicle rigidity and complies with all US regulations related to impact testing.

    The suspension comprises of double wishbones, aluminium control arms, horizontally-opposed coil-over dampers with electronically-controlled compression and rebound tuning, stainless-steel push rods and a blade configured anti-roll bar.

    The ME Four-Twelve braking system features massive 381 mm ventilated carbon ceramic composite disc brake rotors with six-piston aluminium mono block calipers for superior braking performance during all driving conditions. The composite discs are 65% lower in weight than comparable cast iron rotors. This results in significantly reducing unsprung mass and improving shock damping response.

    At just 1140 mm tall, 1999 mm wide and 4541 mm long, the two-seat ME Four-Twelve has a striking presence… poised as if ready to pounce. Its “chiseled all from one piece” look is the result of hours of development in the Chrysler Group wind tunnel. The computer-controlled active rear spoiler articulates rearward 100 mm to increase downforce to a total of 421 kgs at 186 mph 300 km/h, while achieving a competitive Cd of 0.358.

    All body openings have been optimized to achieve maximum thermal performance. In addition, large vented front and rear wheel houses reduce lift as well as active and passive aerodynamic devices that have been implemented to provide stable vehicle performance at all speeds.

    This vehicle breaks the mold of the supercar genre because its packaging can easily accommodate drivers in a wide range of heights. Ease of access to driving controls was a primary focus. For example, there are steering wheel-mounted controls, including a column mounted F-1 racing style paddle shifter with aluminium shift paddles and centrally- mounted driver controls.

    “In terms of advanced materials, aerodynamic efficiency and vehicle dynamic performance, the ME Four-Twelve represents the ultimate engineering and design statement from Chrysler,” said Wolfgang Bernhard, Chief Operating Officer – Chrysler Group. “It’s everything we’ve learned about creating exciting, desirable automobiles. And, as such, it’s not really a concept car but is, in fact, a prototype that will be road-ready by summer.”

     



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    After getting off to a good start in 2003 with 1,200 units of Chevrolets sold in its first four months of business, Hicomobil is aiming for 6,000 units in 2004. The company, a subsidiary of DRB-HICOM Bhd, has 40 sales dealers and 11 service dealers nationwide and intends to add 12 more dealers and 25 more service centres during this quarter.

    This was announced by DRB-HICOM Group Chairman, Tan Sri Dato’ Seri (Dr) Mohd Saleh Sulong, during the official opening of a Hicomobil dealer in the Bangsar area of Kuala Lumpur this afternoon. The dealer, Traza Auto Sdn Bhd, is owned by a husband and wife team.

    Speaking to reporters after the event, which was graced by Minister of Women & Family Development Dato’ Seri Sharizat bt Abdul Jalil, Tan Sri Dato’ Seri Mohd Saleh Sulong said that around 55% of the Chevrolets sold to date were the lowest-priced model, the Aveo hatchback. He added that prices of all Chevrolet models would not change ‘at this time’, explaining that the company still had some stock which was imported before the announcement of the new tariffs.

    To a question concerning the recent remark by an unknown industry source that the Koreans are under-pricing their cars in Malaysia, he said that this was not the case for the Chevrolet Aveo, which comes from Korea. He explained that the reason why Korean cars can be priced so affordably is because the Korean manufacturers have large volumes and so their costs of production are lower.

    Making a comparison to Proton, he said that the Korean manufacturers simply have better economies of scale to enable them to sell their products more cheaply. He hoped that Proton too could achieve better economies of scale for cheaper products because, ‘after all, our subsidiary EON is also selling Protons!’

    Commenting on the state of the market today, Tan Sri Dato’ Seri Mohd Saleh Sulong said: “The prices of new vehicles have been determined by the industry players ever since the Government liberalized this procedure since January 2003 [a reference to the lifting of price controls]. Subsequently, the recent move by the Government will see car prices being determined more by market forces, which augurs well for customers.”

    “The industry will be experiencing a new level of competition. This will be driven not only by competitive pricing and service quality but also the introduction of new models on a regular basis by all leading players. In short, all these developments will benefit customers,” he added.

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    Under the new tariff structure for the motor industry, the prices of virtually all new vehicles will rise but for commercial vehicles, there should be no difference since no change of CV duties was made in the December 31 2003 announcement.

    This was confirmed by the Malaysian Automotive Association (MAA) today during its annual presentation of sales and production figures. According to MAA President Aishah Ahmad, just on direct comparisons between the old duty structure and the new one have shown that prices generally will be higher.

    “We have not factored in exchange rates which have become less favourable in the past year,” she added.

    Cik Aishah said that there were no outstanding issues with the government departments as these had been resolved before Chinese New Year. It is now up to the individual companies to announce their new price levels as and when they wish to.

    “The Chinese New Year holidays were quite long so some people may not have completed their calculations and are not ready to announce their new prices. In any case, there are still some old stocks left to sell off which will be at the old prices,” she explained.

    She said that, based on normal industry sales volumes, the old stocks would probably be sold off within a month or so. However, she acknowledged that the confusion over the new tariff structure and inability of the companies to let their customers know the new prices had meant that January sales would probably be lower than usual and uncharacteristic of the period before Chinese New year when sales are usually boosted.

    According to Dr Ang Bon Beng, Executive Director of Edaran Tan Chong Motor, Nissan vehicle prices (with the exception of commercial vehicles) would see an increase of between 3.9% and 8.0%, depending on the model. He added that the increase in the yen’s strength against the ringgit was also giving them some ‘headaches’.

    DaimlerChrysler Malaysia’s Raymond Chow repeated the statement of his CEO Frank Steinleitner that the company would do its best to maintain Mercedes-Benz prices in spite of the appreciation of the euro which has been more significant than the yen.

    Cik Aishah noted that the new tariff structure had a severe impact on 4WDs and MPVs and this was a conscious move by the government. “It is intended to limit sales of such models because they are seen as taking away sales from national brands,” she explained. An ACM representative who was present said that their calculations showed that price increases for their Isuzu 4WD models could be as much as 10%.

    Naza Kia director Ahmad Ibrahim said that prices of imported Kia models would probably go up by 3% – 6% although they were trying not to increase the price of the Spectra which is locally-assembled. He said that the exchange rate was not a problem for them since they are buying in US dollars and the exchange rate for that currency is fixed by the government. However, for the Naza Ria MPV, a marginal increase was likely due to the change in the duty structure.

    Responding to the recent suggestion of dumping by Korean makes which an unidentified industry source made recently on behalf of ‘a number of local carmakers’, Encik Ahmad said that this was not true. Citing the Spectra as an example, he said that if the prices of the Korean models were cheaper, it should be possible for Naza Kia to sell it at an even lower price than Proton but this is not the case. He also refuted claims that Korean cars sold here were much cheaper than elsewhere and gave a couple of examples.

    When asked how the Koreans could price their cars so cheaply, he explained that production costs in Korea are low due to far better economies of scale. “Kia makes 600,000 vehicles a year and Hyundai even more, so they have very good economies of scale compared to Proton, which may have a capacity of 230,000 units but does even less than that figure annually,” he said.

    A veteran motoring journalist who visited Korea last week told AUTOWORLD.COM.MY that while he was there, he was quite shocked by the prices of Korean models which were as low as US$2,000 (RM7,540) for models like the Atoz. So it is not unreasonable that when they export their cars, the prices are also relatively low, more so since exported vehicles would not be subject to the duties of Korea.

    Commenting on the issue, Cik Aishah said that the margins on cars are pretty thin and market forces determine prices so it is up to each company how much they want to sell their products at. She further added that the industry had, for many years, been urging the government to lift its controls on pricing of cars sold locally and to allow market forces to determine prices. It won this last year and it can be seen that prices have indeed fallen – benefiting consumers – as companies have been given the flexibility to price according to market conditions.

    A senior executive in a car company (dealing in Japanese makes) who did not wish to be named said that he did not think the Koreans were dumping at all. He said it’s a common strategy of theirs all over the world and while it does make things tougher, it is all part of the ‘battle in the automobile market’.

    “We certainly wish we had bigger margins to work with so we can also lower our prices and challenge them more effectively but they are very aggressive and we prefer not to engage in a price war with them. We will find other ways to compete and besides, we also do have a large base of loyal customers built up over the years,” he said.

    So it’s all about competition and the survival of the fittest. In free markets, competition has been to the benefit of consumers as companies compete for better sales by constantly adjusting prices downwards. It is only in a protected environment where some parties have a monopoly that consumers are instead the losers because there is far less incentive to bring prices down when competition is restricted. In the longer-term, it can be economically damaging since consumers pay higher prices for their cars than necessary when more of their money could be spent on other industries.

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    After the boom of 2002, the local automobile industry experienced a drop in total industry volumes (TIV) to 405,010 units, which was 6.9% lower than the 2002 TIV of 434,954 units. Even if you add in Hyundai sales, which were not included as Oriental-Hyundai is not a member of the Malaysian Automotive Association (MAA) and does not contributes its sales/production data, the TIV would probably be in the region of 413,000 units.

    Malaysia was the only country among the ASEAN 4 (Thailand, Indonesia, Philippines and Malaysia) which recorded a decline in TIV in 2003. According to Aishah Ahmad, President of the MAA, unofficial data indicates that the other countries had about 7 – 8% growth last year.

    “While some global and regional events affected consumer sentiment, the drop in sales in Malaysia was due largely to the ‘wait-and-see’ attitude of consumers who were expecting prices to fall when the government revised its tariff structure in preparation for AFTA,” she said.

    “Now that the government has introduced the new tariff structure and we all know how prices will change, the market will hopefully pick up during 2004 with a modest increase of 5% to 425,000 units,” added Cik Aishah. “Our association feels that the country’s economic growth will remain strong and this should create an environment of optimism among businesses and consumers, with positive effects on sales.”

    So what happened in 2003? As is well known now, the leading national carmaker Proton saw its sales decline substantially and in the full year, its share of the passenger car (PC) segment fell to 48.6% from 59.6%. This translated into a fall in sales volume from 214,373 units in 2002 to 155,420 units in 2003.

    Perodua’s volume fell too – from 114,265 units to 111,798 units in the PC segment – but its market share rose from 31.7% in 2002 to 35% in 2003. When its commercial vehicles (CV) and 4WD models were included, its total volume was 124,008 units which gave it 30.6% market share, a marginal improvement for 2002’s share. Proton, without stronger representation in the other segments, saw its overall market share fall to 38.8% from 49.4%.

    According to the MAA’s data, the volume of national models sold (in all segments) totaled 293,443 units in 2003, 15.3% lower than the volume for 2002. This was in spite of the inclusion of the Kia Spectra (which was designated a ‘national car’ from May 2003) and also the Naza Ria. Hicom and Inokom products also receive special privileges and are regarded as ‘national makes’ as well.

    While national makes seemed to lose popularity, non-national makes enjoyed greater sales to total 111,567 units or 25.9% higher than in 2002. Among the non-national makes, Toyota continued to be the best-seller with a total of 40,239 units sold and a 9.9% share of the TIV. Toyota’s strength was in its CV segment where the Unser is classified and in fact, the 14,383 units in this volume were the highest among CVs and accounted for a 28.3% share. In terms of PCs alone, Toyota’s volume was double its 2002 figure at 18,986 units which was 5.9% of the PC segment and the highest; next was Honda which sold 14,154 cars and had a 4.4% share of the PC segment (and 4.2% of TIV). Its increase in PC sales was very impressive too – 4 times more than in 2002 but then again, 2002 had been a really bad year for them. However, Nissan was behind Toyota in terms of overall sales volume with 18,143 units sold and like Toyota, its largest volume was in CVs.

    Naza, the youngest brand in Malaysia, grabbed 7th overall position with 7,754 units sold while Kia was 8th with 7,079 units sold.

    Among the European makes, Mercedes-Benz, at 13th overall position, was the best performer with 3,306 units sold, 2,994 of them PCs. BMW (No. 14) sold 2,145 units, of which 156 units were the X5 SUV. Volvo was positioned at No. 15 with 1,097 units (this includes Volvo trucks), about a third of the volume taken by the XC90. The highly-rated SUV certainly helped Volvo almost match its 2002 volumes (excluding trucks) as PCs alone saw a decline in sales.

    Among the three segments – PC, CV and 4WD – it was the CV segment which saw the highest growth of 19% while the PC segment saw a drop of 11.1% in volumes. The growth of the CV segment mirrors the economy of the country and as it has been steadily growing, business has improved and fleet purchases have increased. The boom in the retail industry has also fuelled demanded for CVs, especially in the smaller range which is required for urban logistics.

    Looking at the production figures, it’s interesting that the reduction in output was 7% compared to 2002, fairly close to the fall in TIV for 2003. The greatest volume reported in 2003 was by Proton which had production from two plants (the other is a contract assembler in Pekan, Pahang, which does the Iswara) totalling 165,018 units, 67,163 units less than what it made in 2002 or a reduction of 29%. Of its total output, 6.072 were CVs, which were the Arena pick-up.

    So if you make a rough estimate of production versus sales, Proton would have produced a surplus of 7,705 units during 2003; however, if you factor in its production in 2002 which was 232,181 units against total domestic sales of 214,985 units, then there would be a surplus of 24,901 units over the 2-year period. This does not, of course, consider the exports which Proton officially states as being ‘less than 10% of total output’ (an industry analyst calculated that Proton’s export volumes are about 5% of its production at the moment).

    Perodua’s production was lowered by 2% for 2003 and a total of 130,680 vehicles were produced which means 6,672 units surplus. Like Proton, though, Perodua also exports some of its production so the actual surplus is hard to gauge.

    Apart from Proton and Perodua, the most productive plant in Malaysia was Assembly Services Sdn Bhd (ASSB) which is owned by UMW Toyota Motor. The plant in Shah Alam, Selangor, assembles Daihatsu, Hino and Toyota vehicles and in 2003, its output was 46,133 units, of which Toyota vehicles alone accounted for 87%. Its output was 37% higher than that of 2002 when it did 33,624 units.

    Compiled by MAA


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    To most of the world, the North American International Auto Show (NAIAS) is the ‘biggie’ for that country and indeed, it is the event which gets the most publicity. However, elsewhere in the USA, there are also other big motorshows which sometimes give glimpses of new models that may not be highlighted in Detroit’s NAIAS. One such show is the Los Angeles Auto Show which runs at around the same time. PH Cheah, our roving reporter, contributes a story on the show after his visit…

    Los Angeles’ annual motor show has to play second fiddle to the larger, more glamorous even in Detroit usually opening a week or so later. So the LA visitors do not get to see the latest unveilings of Detroit although having said that, the show is not without its attractions. I have covered the LA show for many years now and have always found the LA Convention Centre a great place for such an event.

    This year, the Los Angeles event was about the Yankee carmakers trying hard to establish themselves back into the passenger car market. These past couple of decades saw the Big Three increasingly rely on their trucks or SUVs. As a result, the passenger car market has become the bastion of the Japanese carmakers, even if the best-selling models like the Honda Accord and Toyota Camry are actually made in the USA.

    So it looks like the fight back has begun… or is just beginning?

    Chevrolet has finally replaced its ancient Cavalier with the new Cobalt, available as a saloon and coupe. The car sits on GM’s ‘Delta’ floorpan and is available with three engine choices. The base engine is a 2.2-litre and next up is a 2.4 litre. There’s also a 2.0-litre supercharged engine for the SS Supercharged coupe. This is not a bad looking car, certainly better in appearance than any of Chevrolet’s current range. Chevy also claims far higher levels of build quality and is hoping to have the Cobalt turn out to be a serious rival to the Honda Civic, Toyota Corolla and the Ford Focus.

    Chevrolet also showed off its new Corvette powered by a new 6.0-litre V8 that delivers 400 horses. The body is all new, finally doing away with pop up headlights. The new body is sleeker, more modern than its predecessor but I can’t help thinking it looks too much like a re hash of last year’s model. Funny how some ‘all new’ bodies look like major facelifts…

    The Saab 9 2X looks to me like a ‘re nosed Subaru Impreza’ complete with the Saab badge on the bonnet while staying true to Subaru’s all wheel drive system and interiors. Whether this convinces Saab buyers and brings new blood to the Swedish line is uncertain. Turning the Impreza into a Saab appears as convincing as the presence of WMDs in Iraq!

    GM’s Pontiac Division showed off production versions of its new GTO. This is based on the Australian Holden Monaro and is imported from Down Under. Why mention this? Well, when you see the GTO/Monaro among other Pontiacs and Chevys, Buicks, Saturn and various GM cars, you begin to realize the sheer good looks and the cohesive design from Down Under is missing from GM in the US. Never thought Holden can teach its masters a thing or two about styling!

    Oddly enough, the vast GM stand even had some sort of morbid wake to the defunct Oldsmobile brand with the last remaining Oldsmobiles shown. It celebrated 100 years of the marque, explaining the company’s innovations and ideas. The final innovation must be the appearance of the soon to die brand at Los Angeles.

    Ford has not had a great couple of years but it seems to be celebrating its 100th year of existence with much promise for the future. The company has also found the passenger car holy grail and showed off several examples of the company’s future wrapped up in the Ford GT, new Mustang, the Ford 500 and revised Focus.

    The GT is Ford’s first (and perhaps America’s only) supercar that’s meant to do battle with the likes of Ferrari and Porsche while the Mustang evokes much from the classic Mustangs of the 1960s, interpreted in a modern and muscular looking body.

    The US Focus has come in for a Mondeo like nose, new cabin and better quality. The Five Hundred is a new large sedan to take on the likes of the Accord and Carnry. It is a solid-looking car, somewhat bland in some areas with nose that is reminiscent of the Mondeo. It looks quite roomy and has a cabin that, like most new Yankee Fords, appears inspired by the dashboard and fit/finish of VW/Audi cars. That’s not a bad thing.

    But the company isn’t about to abandon the SUV and pick-up market its F Series is still the world’s best-selling vehicle and the Explorer remains the best-selling SUV on earth… and now comes the Freestyle, a crossover SUV like wagon with seven seats and a clean, neat-looking body, somewhat similar in appearance to Australia’s forthcoming Territory. The smaller Escape gets its Hybrid version later in the year.

    Of course, the Los Angeles event would not be without more trucks from other manufacturers. Hummer showed off a pick up version of its H2, while Nissan paraded a new truck that is a serious attempt to take on the Ford F-Series. Toyota unveiled a new truck at Detroit and also showed off a new sporty model for its Scion brand (Toyota’s attempt at capturing America’s youth with affordable cars).

    Chrysler displayed its slow-selling Pacifica, now re priced because the launch price was considered too high. Not a bad looking vehicle this but I was struck by the limited opening provided by the front doors. Still, it feels solid and has obviously benefited from its M-B association.

    The Europeans were in force with BMW showing off its new 6 Series drophead. How odd – lopping off the 6 Series roof has actually made the car look better. But nothing much can help the look of the 5 and 7Series although I hear a 7 series facelift is in the cards.

    But it had to take Aston Martin to show BMW (and others) how to produce a stunningly beautiful sportscar. The new DB9 graced the stand within the vast Ford Group area and as my second look at the car since Frankfurt, it remains a styling tour de force that almost matches the DB7’s beauty.

    This time, I did not manage to get to LA in time for the Press Days so I had to see the show during the public days which meant less opportunities for good pictures but I still managed to get some which I hope you folks like.

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    From the smallest (Perodua Kembara) to the biggest (Ford Excursion) and the most powerful (Porsche Cayenne), there seems to be a SUV to suit every kind of customer these days. Just about every manufacturer has at least one SUV in its stable and soon, even smart (a DaimlerChrysler subsidiary) will be offering a SUV.

    The company recently announced this future product which it will call the smart formore (for more, get it?). However, it doesn’t necessarily follow that SUV must mean ‘sport utility vehicle’ as smart explains that the term refers to ‘smart utility vehicle’.

    Scheduled for sale in 2006, this fourth smart model will also mark the company’s entrance into the US market. With the introduction of the new model, smart will be represented in the world’s largest automotive market for the first time. It’s going to be a challenge to make this small car satisfy the tough safety regulations of that country.

    The 4WD formore will also be launched in the company’s other core markets at the same time.

    From the beginning of 2006, the formore will be built in the DaimlerChrysler plant in Juiz de Fora, Brazil. The plant has a capacity of 60,000 cars per annum. In a full sales year, smart plans to sell half of these in the USA and half in their other core markets.

    “With the smart formore, we will be applying the typical smart characteristics of innovation and functionality to the SUV sector. The new smart model will be a distinctive vehicle, unique in the market – so unique that we translate `suv’ as smart utility vehicle,“ explained Andreas Renschler, President of smart gmbh. Mr Renschler would know that US SUV market well since he was the one who set up and ran the first Mercedes plant there which was established to build the M-Class.

    With the name smart formore, smart is following the naming logic which it began with the four-seater forfour. The basic principle of this logic is to give names which have a direct connection to the uses of the vehicle concerned. Therefore from 2006, the smart formore will be added to the range of new smart model names, the smart fortwo coupé, smart fortwo cabrio and smart forfour. The smart roadster and smart roadster-coupé are to retain their original, well-known names, since these already describe what all smart models have to offer – sheer driving pleasure.

    Incidentally, a source at DaimlerChrysler Malaysia says that plans to introduce smart cars in Malaysia are still being studied and a lot will depend on the sort of tax structure which will affect the pricing. While the do not aim to sell as cheapy as a Perodua Kancil, they do want to ensure that the pricing structure will remain consistent for a sufficient length of time.



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      It’s hard to say just what the Chevy Nomad is – it looks like a stationwagon and yet the lines are sporty, and it offers more practicality than a traditional stationwagon, with a good measure of performance for cruising on the highways.

      The concept car is representative of the new breed of vehicles which are a blend of various types to cater to the active lifestyles of today’s motorists who also have diverse requirements.

      Based on GM’s new Kappa architecture, the Nomad represents another line of thought when it comes to leveraging a new sportscar platform. Its fresh approach to styling and contemporary flair comes from having an international network of designers to pen the Nomad. This group has a diverse cultural background and has often collaborated with their North American counterparts to produce a series of stunning, contemporary concept vehicles. Renowned Italian coachbuilder Pininfarina helped assemble the vehicle which is fully engineered.

      Being Kappa-based, the Nomad has rear-wheel drive, boasting independent front and rear suspension attached to a rigid chassis that uses a pair of full-length hydro-formed frame rails as its foundation. To make room for rearseat riders in its 2+2 configuration, the Nomad rides on a 2718 mm wheelbase.

      A turbocharged Ecotec 2.2-litre 4-cylinder 184 kW/250 bhp engine powers the Nomad, which also features an electronically controlled 5-speed automatic transmission with finger-operated tap shifting. Through the use of variable engine valve timing, valve lift and duration can be adjusted throughout the rpm range to improve fuel economy, emissions and performance. der Pininfarina helped assemble the driveable vehicle.

      In terms of utility, the Nomad goes incorporates clever details to accommodate large, bulky items, such as a removable rear roof panel and a unique folding tailgate. A sliding cargo floor extends over the folded tailgate so items placed on the load floor are easily pushed into the cargo area. Chrome strips on the outside of the tailgate complement styling ribs on the Nomad’s rear roof.

      LED technology for the headlamps and taillamps not only add a modern, high-tech touch to the Nomad, but allows for the slim profiles. They look pretty cool when illuminated, too and brighten up more quickly than conventional bulbs.

      “There is a simple, yet very expressive design to the Nomad,” said Dale Brewer, lead exterior designer. “The face of the vehicle, along with the lights, the shape of the grille and the tailgate have Chevrolet heritage, but conveyed in a thoroughly modern way.”

       

      That goes for the interior, too, which has a large, fan-shaped central gauge cluster mounted in the dashboard. The cluster takes on a 3D look, with an aluminium background and special instrument lighting. It’s a luminous appearance that adds visual depth and a sophisticated feel to the interior.

      In front of the gauges is a large, classic-looking steering wheel that is covered in leather. Chevrolet “bowtie” insignias accent a metal band that runs the length of the dashboard – a styling cue on Chevrolet models of the 1950s that contributes to the interior’s geometric theme.

      The black leather-trimmed interior features Cove Blue performance Nubuck inserts, anodized blue aluminium gauges and energizing blue lighting. A color used increasingly by trendsetting designers for its ability to evoke relaxed emotions and convey sophistication, the blue lighting and accents add a uniquely urban ambiance to the Nomad’s passenger environment – like the atmosphere of a hip martini bar.

      Besides looking cool, the interior also offers clever functionality, including three folding options for the rear seat: the center armrest folds to store long items, such as skis, while each rear seatback folds to dramatically increase the Nomad’s overall cargo space.

      The cool theme continues the Ice Blue Metallic exterior color, complemented with an ultra-fine tinted silver-blue accent. In addition to being one of fashion’s most popular palette choices, the blue hue bolsters the Nomad’s sophisticated, urban character.

      “Wherever you look or whatever you touch in the Nomad, it creates a satisfying emotional reaction,” said Jose Gonzalez, lead interior designer. “There are cars that offer more room and amenities, but the Nomad’s environment has soul. It’s a car you want to get in and drive.”

      “The idea for a vehicle like this is more relevant now than ever,” said Gonzalez. “As much as people crave a sporty, great looking vehicle, modern lifestyle interests demand functionality. The Nomad has both. Whether or not they can convey it in words, it’s what everybody is looking for in a new vehicle.”



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      Jaguar and Pininfarina are celebrating their collaboration on the new X-Type Wagon with the unveiling of a unique “Jaguar Formula One Art of Speed.” The creation, which is a visual representation of the fluidity of aerodynamic forces experienced by Formula One cars, is on display in Bologna, Italy.

      In this unique presentation, Pininfarina has taken a Jaguar Formula One car and graphically painted it, taking direct inspiration from aerodynamic research – a field in which Pininfarina has been active since 1972 when it pioneered the first full-size wind tunnel in Italy.

      Andrea Pininfarina, CEO of the famous Italian studio said: “The Design Team at Pininfarina has chosen colours to illustrate the forces that act on a Jaguar Formula One car at racing speeds – the spectrum flows from red for maximum force to yellow, green and blue representing an analysis of the incredible stresses that the air flow forces on to the machine and driver.”

      The red also highlights the extreme heat generated by an F1 car at speeds over 320 km/h, which over the course of a race can lead to cockpit temperatures reaching on average 50 degrees C. In these situations, the driver can lose approximately 1.5 litres of body fluid per race, as well as burning off 600 calories.

      The brakes of a Formula One car can decelerate the car from 320 km/h to 80 km/h in just 3 seconds, placing further physical strain on the driver and chassis. Made of carbon, the brakes operate at temperatures of 600 degrees C, occasionally peaking up to 750 degrees C.

      F1 development is a thorough test bed for the next generation of automotive engineering which will find its way to safe, technologically-advanced, stylish and desirable cars in the future.

      The “Jaguar Formula One Art of Speed” explores the full decorative potential of these functionalities of the car itself rather than applying an additional decoration over it. The bodywork has been transformed into a painting that unites aesthetics and functionality with strong colours that underline its three-dimensionality and dynamism.


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      It’s that time of the year when Malaysians travel up and down the country to celebrate the Chinese New Year with their relatives in their hometowns, or just take the long break to have a holiday at one of the many resorts.

      With the good road network, driving would be the popular form of transport and if you are going to drive long distances this season, be sure your vehicle is in good condition for the extra hours of driving. Not only would a break-down spoil your holiday but it can also be dangerous as a worn-out part could fail and cause an accident.

      A number of companies are offering special service packages during this period and among them is Land Rover Malaysia which has a ‘Balik Kampung’ package with a free 20-point service check included. This check will cover areas such as the lights, air-conditioning (very important for your motoring comfort!), brakes, battery, suspension,
      tyres, engine and gearbox.

      The special service packages are available for the popular Land Rover models and range from RM242 for a Discovery MPI to RM426 for a Range Rover 4.0/4.6. These prices are around RM100 less than the normal price and each package includes a genuine oil filter, engine oil and engine flush.

      The special packages are available till January 31st 2004 and available at Land Rover Malaysia service centres nationwide.

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