KUALA LUMPUR: Proton Edar Dealers Association Malaysia plans to seek a revision on the vehicle excise and taxes or discuss other ways to make cars cheaper for consumers.

Bernama reported that the association plans to meet the Ministry of International Trade and Industry and the Ministry of Finance as part of efforts to address a drop in car loan approvals and sales which it says came following the implementation of the responsible financing guideline from Bank Negara Malaysia which came into effect Jan 1.

A dialogue was held yesterday between Bank Negara Malaysia (BNM) and senior officials of Proton, Perodua, the Malaysian Automotive Association, Proton Edar Dealers Association Malaysia, DRB-HICOM and Perodua Dealers Association to address the automotive sector's slowdown in sales.

Following the meeting with members of the automotive industry, Bank Negara said in a statement yesterday that access to financing would not be hampered as it would still be available to borrowers who could afford to repay their loans.

“Bank Negara has written to financial institutions to ensure that consumers who have the ability and capacity to repay should continue to have access to such financing,” it said.

The central bank said the meeting was held with representatives from Proton Holdings Bhd, Perusahaan Otomobil Kedua Sdn Bhd (Perodua), DRB-Hicom Bhd, the Malaysian Automotive Association, Proton Edar Dealers Association and Perodua Dealers Association.

“The meeting discussed various implementation issues which will be resolved with financial institutions, including documentation requirements for purposes of income verification. This will contribute towards more efficient procedures and processes for vehicle financing,” it said.

Bank Negara said in the past five years, the proportion of vehicle financing over total loans to household sector had averaged about 20%, the second highest after financing for residential properties.

“While there have been some reduction in the total number of vehicle financing applications received between December 2011 and January 2012, due in part to the shorter working month, the approval rate for vehicle financing has remained stable at about 54% for the month of January 2012,” it noted.

-Proton
Bank Negara Malaysia’s new guidelines on responsible financing, which was announced on November 18 last year and became effective in January 1, 2012, hasn’t brought about desired results, it would seem.

The Malaysian Automotive Association has reported a 25% drop in new car sales for January 2012, attributing the cause partly to the restrictions on hire purchase brought about by the new guidelines.

Proton Edar Dealers Association Malaysia (PEDA) has issued a press release, in which it said that the BNM guideline is the second policy that has harmed the automotive industry after the amendments to the Hire Purchase Act last year.

It is calling for the guidelines to be reviewed – it said that the guidelines had severely damaged its sales, with only 30% of applications for loan submissions being approved in January. It is reported that the automotive industry is set to meet BNM tomorrow to seek a review of the guidelines.

PEDA added that the BNM guideline will not only curb and halt the automotive industry’s growth, but will affect vendors, distributors, dealers and sales advisors. It added that the income of more than 4,500 sales advisors in its dealer network has suffered as a result of lost commission earnings.

“The guidelines on responsible financing will only give rise to illegal loan sharks and promote (an) unproductive population,” PEDA president Armin Baniaz Pahamin said in the release.

The association said that when banks are more stringent, it provides a better opportunity for loan sharks to grow, adding that the loan shark industry was already at its prime even before the guideline was introduced. It added that the guidelines do not echo the government’s 10th Malaysia Plan and the government’s vision of the automotive industry, which is the most prominent sector after property.

Prior to the implementation of the guidelines, PEDA said that Proton, car manufacturers and assemblers were already having difficulty in attaining a good economies of scale due to the country’s small population. It said that the guidelines will further shrink its potential buyer’s demographic, and with a smaller market, the fate of more than 300,000 employees in direct and indirect employment within the automotive industry and its support sectors will be affected.

The association stated that it feared the repercussions and impact to the industry if the guideline isn’t reviewed. As it is, it said there are a lot of road bumps that will not only hinder the growth of the sector, but will stop the industry from moving forward, and the least that BNM can do is to encourage healthy competition among bankers to finance buyers and provide a standard procedure of compliance for the public to refer to when buying a car.

Updated footnote: In its release, PEDA explained the procedural requirements and elements needed for a vehicle hire purchase loan application. Initially, I thought it would be rather cumbersome to have placed it into the story, but so as to explain things clearly, I have now included it below, as fully described by PEDA.

Prior to the guideline, the industry was already affected with strict procedures for vehicle loan application. Application for Vehicle Hire Purchase Loan financing approval was previously based on:

1) Central Credit Reference Information System (CCRIS), FIS and CTOS checking.

2) Individual Banks Credit Risk Scoring, which include but are not limited to the following:

i) The Customer’s historical financial payment track record (any outstanding payment).
ii) The dealer’s historical customer non-performing loan percentages or fraud cases
iii) The vehicle model and type historical non-performing loan percentage
iv) Applicant’s other financial commitment (financial exposure)
v) Applicant’s lifestyle (rented house, mortgage, stay with parent)
vi) Applicant’s employer’s background (its paid-up capital, years of establishment etc)

3) Applicant’s salary (rule of thumb: salary is 3x higher than the HP loan monthly repayment).

4) Documents required includes but not limited to:
i) 3 months payslip
ii) 3 months bank statements
iii) EPF statements
iv) Proof of address
v) Copy of identity card
vi) Copy of driving license
viii) Appointment letter (or confirmation letter)

5) Guarantor’s documents as per para 4 will be prepared if the applicant’s income is less than 3x of the HP loan monthly repayment.

6) Banks have some discretion in approving customer’s loan application bearing the credit risk scoring.

With the above requirements, the average duration for approval took a minimum of 3-5 working days and the overall approval rate already stands at a critical 50% of total submission, with at least 25% of the loan was approved at a lower percentage (loan amount was reduced).

IMPACT ON THE BNM GUIDELINES IMPLEMENTATION:

Since January 1 2012, all banks interpreted the guidelines differently and practice different measures in approving vehicle loan application but the new Rule of Thumb especially for Proton car buyers includes all the six factors above and the following unwritten-terms:

1) Gross income of at least RM1,600 per month.

2) or Net income MUST BE RM800 or more. Net income meaning, gross income less EPF and any other loan exposure with banks.

3) Bank statement of at least six months (BNM GL: Para 6.11 and 6.12)

4) No discretionary approval; any applications that does not conform to the requirement are rejected without processing. Since the implementation of the guidelines, banks do not seem to have any flexibility in approving loans.

5) Customer has lost all sovereignty in exercising his/her right to apply for any car loan unless they comply to the Debt Service Ratio (DSR) of the BNM Guidelines. This directly impacts the majority of the national car buyer demographic.

6) A car buyer can only qualify to secure a loan if he/she passes the DSR that totals up all outstanding debts repayment obligations from banks and non-banks (eg cooperatives, building societies, credit companies, and merchants that provide credit sales) against its income after statutory deductions (ie. tax, EPF, SOCSO) (BNM GL Para 6.6)

7) 6 months proof of salary is required for applicants with high ‘variable income.’ Overtime includes overtime, allowances and commission.

-Paultan
KUALA LUMPUR: Automotive industry players will meet Bank Negara Malaysia on Friday to discuss the new guidelines for loan borrowers, following the 25 per cent drop in sales of new motor vehicles last month, says Proton.

The guidelines have been in force since Jan 1.

The Proton Edar Dealers Association Malaysia has called for the new responsible financing guidelines to be reviewed, as it said the guidelines have eroded sales with only 30 per cent of applicants qualified to secure loans in the first two months of the year.

 Zainal Abidin
The Malaysian Automotive Association has reported a 25 per cent drop in sales of new motor vehicles last month, attributing it to a short working month the continuing impact of Thailand's flood disaster and the restrictions on hire purchase.

"This Friday, we will meet Bank Negara to seek a review of guidelines. It is not just Proton or Perodua but the industry as a whole that is facing difficulties," said Proton group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir after the "Proton-Yes First 4G Internet Cars" partnership deal today.

"Let us discuss how we can mitigate this, as the long-term impact will be quite big."

He also said the matter had to be taken seriously as the entire industry eco-system would be severely affected in the long-term if not resolved soon.

"The automotive industry is linked to the country's economic growth.

"We understand the move is in line with the government and Bank Negara's intention to control household debt and we agree with it.

"But if this continues, it's not good for everybody."

Zainal Abidin said it was important for the industry to be sustainable as well as to grow in the face of a soft economic climate.

-Bernama
KUALA LUMPUR: Future Proton cars will come with Yes 4G mobile Internet connectivity, enabling high-speed web surfing while on the move.

Beginning with the soon-to-be-launched P3-21A sedan, the new value-added feature will allow up to five mobile devices to be connected to the car’s micro wireless network at any time.

Tapping on Yes 4G Internet network that covers 65% of the country’s populated areas, passengers can enjoy buffering free youtube viewing, stream music from around the world, video conferencing, and seamless downloading and viewing of HD movies. 

The Apple iPad2 on the customised 
Proton Inspira accessing the net.
Yes is also the only wireless network that offers 4G connectivity along the full 960km stretch of the North South Expressway and a large portion of the East Coast expressway. 

At the ceremony to announce the collaboration here today, YTL Communications Sdn Bhd executive director Datuk Yeoh Seok Hong said high-speed mobile connectivity in today’s world and lifestyle was as essential music players and air conditioning in cars.

Proton Holdings group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said the role of cars were also diversifying and changing rapidly.

“Cars are no longer viewed solely for mobility but are evolving into an extension of an individual’s social and business circle,” he said.   

To mark the collaboration, Yes and Proton are holding a “Win Malaysia’s First 4G Internet Car” contest with the main prize of a one-of-its kind special edition Yes 4G Internet-enabled Proton Inspira worth RM100,000.

The customised Inspira 2.0 is fitted with three Apple iPad2 tablet computers, of which one is mounted on the dashboard and the other two on the backrests of the front seats, a Yes Huddle 4G wireless mobile router, special body paint work and limited edition 18-inch wheels.

The contest closes on March 27. For details, visit www.yes.my or www.proton.com.
SUBANG JAYA: The R3 Unit of PROTON Motorsports Division today returned a completely made-over 1996 Proton Iswara Aeroback to the third recipient of the ‘My PROTON Makeover’ programme. Norzamzarini Mohd Bajuri, was given the keys to his newly refurbished car by PROTON’s Director of Group Marketing, Branding & Motorsports, John D. Chacko, and Head of Engineering of the R3 unit of PROTON Motorsports Division, Tengku Djan Ley bin Tengku Mahaleel.

“This new lease of life that PROTON has given to my car is a gift beyond words and is truly a blessing to me and my family. Thank you so much PROTON!” said Norzamzarini, 35, a software engineer from Muar. 

“In organising this contest, we received many submissions that were very personal and meaningful,” said John D. Chacko. “This overwhelming response is wonderful as it enables us to show our appreciation and reward our faithful customers in line with our “Committed to Be Better” promise that reflects PROTON’s efforts at improvement, particularly towards quality and customer care. Norzamzarini’s composition stood out to us as a very heartfelt piece, therefore we are honoured to reward him for such sincere customer loyalty,” he added.

The red, second-hand Proton Iswara Aeroback 1.3 that Norzamzarini purchased in 1998 received the full R3 treatment, from the powertrain aspect of the car to its overall appearance.

“As it was the primary mode of transport for Norzamzarini and his family, the car clocked high mileage with its daily use. Knowing that the consistency of its usage will continue, the work that was done to the car’s performance was not so much as to give it more power, but to improve its drivability and efficiency,” explained Tengku Djan Ley.

The ideas behind the reworking of the car as explained by Tengku Djan Ley, was to ensure its practicality without compromising its external looks. 

“Norzamzarini mentioned that he liked the colour orange. We then explored that option and decided to do the car up in Lotus orange,” said Tengku Djan. “There was a slight fear that this could potentially make his car look a little tacky. However, the decision to use a significant amount of Titanium-coloured detailing helped us avoid that and ultimately gave the car a uniquely classy and sporty look,” Tengku Djan noted with satisfaction. The car also sports a dark interior with strong hints of Lotus orange, fittingly complementing its exterior. 

The engine and the gearbox were given a full overhaul while the suspension system received special attention. Tengku Djan explained that it was adjusted to give Norzamzarini’s car a standard feel even whilst looking sporty, emphasising that the main outcome is to be a balanced performance for day-to-day driving. 

“We also opted to use 15 inch rims to improve and sustain the car’s balance, so that it will not result in high fuel consumption,” Tengku Djan added. 

“My PROTON Makeover”, rooted in PROTON’s overall “Committed to Be Better” campaign required submissions of personal and heart-warming stories involving contestants and their PROTON cars, with the best five stories winning a complete car makeover. 

For more information and updates on the progress of the cars, visit www.protonvip.com or follow PROTON on www.facebook.com/ProtonCars
Labels:
PROTON rallied to its first ever victory in the 2012 FIA Super World Rally Championship (S-WRC) with Per Gunnar Andersson claiming a dominant drive in the Satria Neo S2000 to finish more than three minutes clear of his nearest rival in Rally Sweden.

Andersson finished the 24 special stages 3 minutes 35 seconds ahead of Ford’s Craig Breen and 4 minutes 49 seconds in front of Skoda’s Pontus Tideman. He was also placed 12th overall ahead of some of the main World Rally Championship (WRC) competitors en route to clinching his third successive win at his Swedish home event.

Andersson and co-driver Emil Axelsson led the S-WRC class from start to finish, making the most of local knowledge, experience and a competitive package to steer the Satria Neo S2000 to victory in the snowy, icy and cold conditions of the Swedish countryside.

“What a phenomenal weekend it has been and a well deserved victory for PROTON after only two rounds of the S-WRC. We knew that we had a very competitive car at the very start of the season in Monte Carlo and we have proven just that in Sweden. The Satria Neo S2000 was dominant throughout the weekend,” said Andersson, who looks back on what could have possibly been two victories in two rounds (of the Championship) for PROTON had it not been for an engine fire three stages to the finish at the season-opening Monte Carlo Rally.

Rally Sweden attracted the participation of 85 entries and covered a competitive distance of 360km over four days. 

“Andersson drove a dominant rally to make an impactful introduction for PROTON in Sweden and the World Rally Championship circuit, underlining both the team and brand’s commitment to excel,” said John D. Chacko, PROTON’s Director of Group Marketing, Branding and Motorsports.

Victory in Sweden promotes PROTON to officially joining not only the ranks of rally’s elite, but is its first in the European hemisphere since the Satria Neo S2000 made its competition debut in the Intercontinental Rally Challenge (IRC) in 2009. PROTON’s best finish up until now had been second place at the 2009 IRC Rally of Scotland, although the Satria Neo S2000 did go on to dominate and win the 2011 Asia Pacific Rally Championship (APRC) driver’s and manufacturer’s titles. 

“It has been an incredible journey to get here (victory for PROTON). As we celebrate this moment, I assure you that development work continues to ensure that the Satria Neo S2000 enhances its competitiveness throughout the season. It is still too early in the season and there is still plenty to be done to if Andersson is to make a strong bid for this year’s S-WRC title,” said Datuk Abdul Razak Dawood, the Head of Proton Motorsports.

With Monte Carlo and Sweden now over, PROTON is due to compete in another three of the seven S-WRC rounds in 2012.

-Proton
Our Services Are Catered To Both Current and Future Proton Owners.

It is our desire to ensure the exceptional service and maintenance of your purchased Proton. Handing over your car to the wrong dealer for a quick fix may lead to long-term repair work, in the future. That is why you should choose an Authorised Proton Service Outlets as your first choice of servicing. 

You can entrust an Authorised Proton Service Outlets to service your vehicle because our trained experts maintain your vehicle using genuine Proton parts. 

As for other dealers, you may be getting an imprecise amount of service whereas a genuine Proton service ensures your vehicle gets the accurate maintenance and approved service schedules, regardless of age or mileage.
Subscribe to: Posts (Atom)