Case Study Automobile Industrial In Malaysia

3.1 Case Study Automobile Industrial in Malaysia -The EON-Proton Edar Case

The automobile created by the national automobile organization, Perusahaan Otomobil Nasional Berhad (Proton), have been generally dispersed locally by two firms, in particular, Proton Edar Sdn Bhd (Proton Edar) and Edaran Otomobil Nasional Bhd (EON). EON was built up in 1984 as the sole wholesaler of the national automobile (Proton Saga). The strategy adopted then was to isolate the assembling movement from the distribution activity. Proton Edar was built up in 1985 and it later advanced into a joint-wander amongst Diversified Resources Berhad (DRB) and Proton Berhad in 1993 to appropriate Proton’s automobile, Proton Wira. Proton Edar completely claimed and became a

Another new dealership agreement have subsequent to not been closed. These progressions set the phase for further intensification of the contention amongst EON and Proton Edar to distribute Proton’s automobile. Issues emerged with the starting of another Proton automobile, Gen.2 on eighth February 2003. Proton decided to choose at first to distribute Gen.2 solely through Proton Edar with EON sourcing its supply of Gen.2 from Proton Edar. Proton has likewise contended that EON should limit itself to selling “a single brand in a single showroom”, referring to EON’s current practice of selling Proton’s cars as well as that of Audi and Chevrolet. (Cassey

This development came about because of the adjustment in government approach from import substitution to a more rationalized policy, aiming at increasing localization of parts and components. The two important reasons for Automobile production and sales grew significantly in the 1990s which are the appreciation of the Japanese yen in 1985 encouraged Japanese and part makers to expand their production in Thailand. On the other hand, the Thai government resolved to liberalize the automobile industry, For example, the deregulation of the automobile industry in the early 1990s and the abolishment of the Local Content Requirement regulation in 2000. This significantly transformed the Thai automobile industry from a much secured industry to a more liberalized one. After only 40 years of development, the Thai automobile industry completely turn into an export-oriented industry, indicating that Thai made vehicles could achieve international quality standard and competitive price. These vital parts go past basically expanding the levels of localization of parts production for their operation in Thailand. (Kriengkrai Techakanont,