Both national carmakers Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) will be joining hands with MAI to explore possibilities in streamlining their vendor system to reap synergies and the economies of scale for the vendors.
It was understood that meetings between MAI and the head honchos of both Proton and Perodua were held three days ago to discuss the matter.
 |
A file picture shows a production line at Proton’s plant in Behrang Hulu
near Tanjung Malim. |
When contacted, MAI chief executive officer Madani Sahari confirmed that he had met up with Proton executive chairman Datuk Seri Mohd Khamil Jamil and Perodua managing director Datuk Aminar Rashid Salleh. However, he did not reveal the details of the meeting.
“The rationalisation of the supply chain makes sense, as the vendors would be able to reap the benefits of economies of scale naturally,” he said.
<B>Madani:</B> ‘The rationalisation of the supply chain makes sense.’ Madani: ‘The rationalisation of the supply chain makes sense.’
He said a bigger base of vendors would surely make the initiative more sound and robust in its implementation, adding that there were currently about 100 vendors supplying parts and components to both Proton and Perodua.
“If generic components can be manufactured under one system instead of two, cost savings arising from the strategic collaboration could allow vendors to become even more competitive.
“These vendors could also venture into the global supply chain by collaborating with other international original equipment manufacturers via exports,” he said.
He said this would not only benfit the vendors but the effects would also trickle down to consumers who stood to enjoy competitively priced cars with better quality components.
However, this potential merger of sorts by both Proton and Perodua needs to be studied carefully following the enactment of competition laws that might deem this collaboration as anti-competitive.
Besides, it has long been rumoured that the two national carmakers might collaborate but speculation in changes in the ownership of Proton has ceased.
Talks have since been revived and while a full-blown merger might be too far fetched, the rationalising of the supply chain would still leave space for both car manufacturers to compete with each other in the open market among the other players.
0 comments:
Post a Comment