1(00): Simplified guide to engine-oils

Came across this useful article.  Well worth checking it out.

http://www.zerotohundred.com/newforums/features/384644-simplified-guide-to-engine-oils.html

posted a DIY guide sometime back on how to change your engine oil and it raised some questions:






"Whats a good oil to use in my old junk?"

"Can I use this oil in my car?"

"My car drinks oil for breakfast, lunch and dinner! Have to top up all the time!"





In some cases the knowledge was based on hearsay and recommendations from their friendly neighborhood mechanic. That's actually not a problem however your regular bawak-pokok mechanic will tell you it works one lah and if it ain't broken, why change/fix it? And there lies the problem.
How does engine oil work?

Engine oil is the life blood of the engine. Blood in the human body will be replaced by biochemical reactions in the body but engines are stagnant and highly dependent on you maintaining it properly. What happens if you don’t? Sludge and varnish starts to build up, engine bits start to wear faster (piston rings, valves, tappets, etc) and in some extreme cases, you might get a complete engine seizure.

So how do you choose engine oil? First you must understand the different viscosities and how it affects your car. Let's take 5W30 as an example. The "5" number indicates how the oil reacts when the engine is cold. the "W30" is how viscous the oil is when heated to 100 degrees celsius. What does that mean?
Simple.


75% (according to the Castrol advert) of all engine damage is at cold engine startup. That's because all the oil is at the bottom of the engine and anything at the top would be somewhat dry. So technically speaking the easier the oil flows to the 'drier' parts of the engine, the lesser the wear on startup. In cold countries such as Japan and anyplace that has winter, it's recommended to use "0" or "5" weighted oils because this oil weight is resistant to freezing at those temperatures. Try using a "10" weight oil in a -5 degrees temperature and you'll have major problems starting up. In Malaysia however, it's not really necessary to use anything less than 10 but there's no harm is wanting to give your precious engine the best your money can afford.
"W30" indicates how the oil flows at 100 degrees celsius. Meaning if you're running a really hot engine (like Turbos or track cars) then you'd very likely exceed the 100 degrees and the oil will either get burnt off due to the heat or breakdown and become useless. This is why you rarely ever see low viscosity racing oils in the market. It's usually 0W50 or single grade oils (like those used in F1 where it has to be heated and intravenously fed into the car).

So generally speaking, if you're burning so much oil you have to top up 2L of oil every month, you're probably using the wrong viscosity for your car. If you want better fuel consumption use a lower viscosity oil like 0W20 but don't expect it to work wonders if you're revving redline all the time. So choose your requirements wisely.

TO CONTINUE READING.  Please Click the above link for FULL ARTICLE.  Credits to Izso, ZTH STAFF.

That's all folks, thanks for having the time and patience to read this blog entry.  NOT MY WORK!

KL roads almost deserted

KL roads almost deserted

KUALA LUMPUR: The city is gradually becoming deserted as more people leave for their hometowns to celebrate Aidilfitri, which is expected to fall tomorrow.

It was a very different scene of smooth traffic compared to the snarled conditions of the past two days.

The Sungai Besi Toll, North-South Highway and Jalan Duta Toll saw fewer vehicles today.

A private sector worker, Liyana Yusoff, 26, said traffic was smoother this year compared to previous years.

"I am on the way to Melaka from Bandar Tun Razak and find it is not as bad as it was during the weekend," she said.

Another worker, Maisara Ahmad, 42, said she chose to go back to her hometown in Taiping today as there was less traffic and she was confident it would be a smoother ride on the highways.

Civil servant Mazlan Abdul Hamid, 33, said he checked the PLUS Expressways Bhd schedule last night before leaving the house earlier this afternoon.

"My number plate ends with an odd number and that means I can travel this afternoon," he said.

Meanwhile, a scan of the Pudu Sentral area saw fewer people at ticket counters.

A Kesatuan Ekspres ticket seller who identified herself as Sharifah, 41, said bus ticket sales were lower this year and there was only one bus to the north tomorrow while none were scheduled to the east coast.

It was a time of joy for student Nurul Syazwa Azmi, 23, who said last-minute travelling was fun because she would have a smooth journey and reach her family home in Sungai Petani, Kedah, just in time for the start of the festivities.

-Bernama

Women prefer men to take the lead - in car maintenance

 The Star Motoring: Saturday, July 16, 2011 (SOURCE) 

Women prefer men to take the lead - in car maintenance

LONDON: Women are still passing on the responsibility of car servicing to male counterparts, according to new research from car servicing network, Bosch Car Service.

Just three in 10 women said that they take their own cars for a service, compared with seven in 10 men. While neither men nor women expressed a particular ‘dread’ towards car servicing when asked to compare it with any other household chores, a significantly greater number of women (35%) stated that they were not confident that they would get a good experience from a car service, as opposed to just 24% of men.

“It is clear that there is still a feeling of discomfort amongst women drivers towards taking their cars in for a service, which could be why they are leaving it up to men”, said Bosch Car Service Concept manager, Howard Price.

“The majority of customers in general (70%) already feel confident that they will get a good experience of getting a car serviced, and this is good news for the profession. However, there are still discrepancies according to gender and age; car servicing professionals need to continue to do all they can to build the same levels of confidence among all customers, regardless of whether they are male or female, old or young.”

The survey was conducted to compare drivers’ perceptions and to highlight any concerns amongst the public towards car servicing. Almost half of the women asked stated that they leave car servicing up to the men in their families, with 36% leaving it to husbands, 6% boyfriends and 4% dads.

Bosch Car Service, which has over 500 garages in its British-wide network, recently released the results of its annual customer satisfaction survey, scoring 99% for overall customer experience.

The survey also revealed that three in ten drivers under the age of 24 admitted to letting mum and dad deal with the responsibilities of car maintenance, and just three in ten took their own cars in for a service.

This was significantly less than the percentages from other age groups that take their own cars to be serviced – with all other age groups showing as approximately 50%. In contrast, younger drivers didn’t express any greater concern about car servicing experience in general than any of their older counterparts.

Howard continued: “With younger drivers, the reason for leaving it up to parents is most probably because of inexperience – as well as cost – rather than feeling unconfident in the experience of car servicing.”

Although younger drivers expressed no greater dread or concern about car servicing overall, they were significantly more concerned than any other drivers about garages overlooking faults, with 20% stating this as their biggest concern. This varied significantly with the thoughts of older drivers, who – at aged over 35 – averaged just 8% who had the same concern.

“This could indicate a wider lack of confidence in vehicle maintenance amongst newer drivers”, continued Howard.

“Garages need to reassure younger and newer drivers, and make an effort to explain to them about any problems that are detected in their vehicles to make sure they gain an understanding – and therefore a confidence – in maintaining a car, detecting faults, and staying safe on the roads.”
 

 

Auto players unhappy with Hire-Purchase Act

Auto players unhappy with Amended Hire-purchase Act

Auto dealers are doubtful whether the targeted 2.1 per cent increase in total vehicles sales to 618,000 units this year can be achieved, no thanks to the amended Hire-Purchase Act 1967, which although aimed at protecting the rights of consumers, was dampening bookings.

Several auto companies have complained that their daily bookings mainly for cars had declined by an average of 20-30 per cent since the amended Act came into effect on June 15.

Local automotive players, while appreciating the amended Act which upheld the rights and interest of consumers, are already feeling the pinch of flat sales which they expect will continue for the next few months due to new requirements under the Act.

At least three auto industry players Proton, UMW Toyota and Edaran Tan Chong, with a combined market share exceeding 50 per cent of the total industry volume (TIV), said they might revise the company's initial sales targets.

The amended Act, which came into effect a month ago, has resulted in cash flow problems for dealers, as the maximum booking fee of only one per cent of the total selling price of the car imposed on buyers, was too small compared with the previous requirement of 10 per cent.

To make matters worst, if the deal falls through, the buyer gets back 90 per cent of the booking fee, leaving very little for the dealer.

The Executive Director of Edaran Tan Chong Motor Sdn Bhd Datuk Ang Bon Beng said customers can change their mind to purchase a car even at the eleventh hour in view of the low booking fee.

In other words, there was no commitment to the deal, he said, adding that the burden of this uncommitted relationship has to be borne by car dealers or the principals of automotive companies.

Besides, customers only need to sign the purchase agreement when the car is produced and shown to the customer and if the customer opts not to buy the car, dealers again tend to lose out.

If the cars are not sold, then it causes disruptions to the supply chain as orders were already made for the cars.

As a result, car dealers were now recording a 20-30 per cent decline in bookings per day owing to the longer process required to get a car under the amended Act as buyers now have to deal directly with the bank which means increased documentation and processes.

Previously, a dealer would be able to handle the entire documentation and buying process of a vehicle. "We (Tan Chong) used to record about 200 bookings per day, but now it has dwindled to about 100 bookings only," Ang said.

Ismet

Moreover, due to the low booking fee, car dealers could not distinguish between genuine and phantom buyers, as many opted to switch to other cars at the last minute.

Dealers also complained a buyer could place phantom bookings at several different car dealerships without paying booking fees, resulting in a waste of loan application resources and inefficiencies for banks and car dealers.

President of UMW Toyota Motor Sdn Bhd, Ismet Suki, while concurring that the intention of the government to ensure consumers were not cheated and misled was noble and accepted by all industry players, however, felt there were weaknesses.

"The act is flipped, from the automotive perspective, as many segments are disrupted, namely manufacturing, production and the (vehicle) ordering system," he said.

Ismet said the longer documentation and paperwork process between banks, car dealers and customers have actually slowed down the delivery system as the process of finalising a vehicle purchase agreement took an extra 3-4 days.

The manufacturer and marketer of Toyota marques as well as the distributor of Lexus-brand vehicles also said that the main issue now was not selling the cars, but taking the risk of producing cars according to the order bank, without knowing whether the orders were genuine or would be met.

Proton Edar Sdn Bhd General Manager for Marketing Sidik Abdul Hamid said as far as the national car maker was concerned, the reaction to the amended Act from consumers was positive.

However, he said, the company was looking at revising downwards Proton's initial sales target of 173,000 cars as the number one automotive player has registered a 30 per cent drop in bookings since June 15.

Against such problems faced by car sellers, the government had last month promised to resolve their grouses over the implementation of the Act.

 -Bernama 

Related: 

Government open to reviewing act

Wednesday, June 15, 2011

Women drivers to circle Saudi embassy in protest

WASHINGTON: An unusual protest is planned for Washington as women plan to drive around the Saudi embassy to protest the kingdom's ban on female drivers.

The Institute for Gulf Affairs, which is sponsoring Wednesday's rally, accuses Saudi Arabia of practicing a system of gender apartheid that oppresses women - most noticeably by refusing to allow women behind the wheel.

The protest will run from noon to 4 p.m. outside the embassy in Washington. It is designed to support a protest planned for Friday inside the kingdom itself.

Senior Saudi clerics have issued fatwas, or religious edicts, banning women from driving, claiming it protects against the spread of vice and temptation because women drivers would be free to leave home alone and interact with male strangers.

Proton to give lifetime warranty on power windows

By TEH ENG HOCK

 

SHAH ALAM: Proton’s power window problem is in the past, and in a show of confidence, the national car maker will give a life-time warranty.

Proton managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said Proton power windows now had zero defects although people still thought otherwise.

“We have improved the quality by leaps and bounds, but the negative perception lingers,” he said after launching Proton’s campaign for quality here yesterday.

Proton guarantees that power windows in its cars built today like the Saga FL are reliable and back its words with the lifetime warranty.

“The perception of the public at large is very important, and it is our biggest challenge,” Syed Zainal said.

He chose to tackle the most widespread misperception – the infamous power window problem that had plagued Proton in the past.

“We will guarantee that the power windows will work,” he said.

However, he said, there would be conditions attached to the life-time guarantee and the guidelines would be out by the end of the month.

Earlier in his speech, Syed Zainal related his experience riding in a Proton Waja airport limousine from KLIA to his house in Subang Jaya.

“The driver would open his door instead of using the power window when we stopped at the toll booth. My wife was giggling and poking fun at me.

“So I asked him if the window was spoilt. He said no. He said his friend told him that if he used the power window too much, it would break down,” Syed Zainal said.

The Proton boss said this agitated him as the perception on the quality of Proton cars was very important – to the point of it being debated in Parliament.

“I gave the taxi driver my card, and asked him to do me a favour by using the power window. If it breaks down, he can call me on my mobile phone. He has yet to call me,” he said.

He said the quality of cars was not solely the responsibility of assemblers but started from the suppliers to the sales dealers, service dealers and stockists.

“We want parts to arrive at the factory in good quality. Some people, although they have never driven a Proton, are saying Protons are not good. We want to put a stop to that,” he said.
 

END OF ARTICLE... SOURCE (Star Motoring)

That's all folks, thanks for having the time and patience to read this blog entry,

Six men arrested, stolen car and lorry parts seized

KUALA LUMPUR: Police have crippled a syndicate specialising in stealing cars, stripping their parts, storing and reselling them as spare parts in the Klang valley, Malacca and Johor, after arresting six men in two separate operations.

Police also recovered 1,603 components and engines worth a staggering RM5mil during the raid while seven vehicles were also detained.

Bukit Aman CID Director Datuk Seri Mohd Bakri Mohd Zinin said during the first raid on April 8, two men in their 30s were arrested after inspecting three stores in Batu Berendam and Durian Tunggal, Malacca.

"Six cars reported stolen in the Klang valley and a lorry reported stolen in Johor were also seized," he told reporters here Monday.

He said the second raid was carried out a day later in Johor and involved a store, two shops selling spare parts and two houses while four men in their 30s were detained.

Mohd Bakri said with the arrests, police would be able to solve 250 car theft cases involving Waja, Wira, Iswara and Hicom lorries.

He said the modus operandi of the syndicate was to steal cars or lorries and hide them at stores before stripping them of their parts before selling the parts at a lower price.
 -Bernama

Monday, April 11, 2011

ARTICLE: Fears over 'tsunami cars' landing in Malaysia

Fears over 'tsunami cars' landing in Malaysia

Some of the thousands of damaged cars lined up on a street in Sendai as part of a clean-up operation after the earthquake and tsunami. — NST picture by Sairien Nafis 

 

MALAYSIAN car fans, it seems, are eager to know about the fate of the many damaged cars found scattered in the main areas hit by the recent earthquake and tsunami here. There is now a fear that such vehicles, now commonly called "tsunami Cars", or their parts will make it to Malaysian shores through unofficial or grey market channels.

A check by the New Sunday Times yesterday revealed that the Japanese authorities had been lining up the damaged cars and also new cars affected by the disaster in the main areas of Fukushima, Iwate, Ibaraki and also Sendai.

Most of the cars, with models sold independently in Malaysia, are from established Japanese car makers such as Honda, Mitsubishi, Suzuki and Toyota.
However, the most common are the popular model variants by Mitsubishi, Toyota and Daihatsu which share a common platform with our local Proton and Perodua cars.

The models range from parts that are compatible with our Proton Wira and Juara to Perodua Kancil, Kenari, Kembara, Myvi and also the recent Viva. According to Japanese car enthusiast K. Kanagawa, most of the cars would be sent to be scrapped as their metal content was considered valuable to the domestic Japanese steel industry.

"However, during the process many will not know what happens to the parts, such as usable engine parts and panels," he said through a translator.

Kanagawa, who is also well-versed with the Japanese export market for parts to Southeast Asian countries, said that there were still thousands of vehicles in good condition with only minor damage not accounted for after the earthquake and tsunami on March 11.

Nevertheless, he said a majority of cars sold in the used car auctions in Japan were sold outside of the affected areas and were mainly concentrated at Osaka (Kobe), Nagoya and Tokyo..

Osaka and Nagoya were not affected at all by the earthquake or by the tsunami. Cars and vehicles stored in the ports were unaffected.

However, Kanagawa is not dismissing the possibility that some exporters will jump at this opportunity to buy any post-tsunami vehicles cheap and then sell them off as "good stock".

Malaysian automotive design engineer and classic Japanese car restorer D.M. Gomez is worried that many car spare parts sent here could have been contaminated by radiation.

"To safeguard the public, I hope and trust all parts, both new and used being shipped out of Japan and coming into the Malaysian market are checked for radiation," said the 32-year-old, who is currently sourcing for rare parts for his Nissan Skyline supercar project.

Gomez expressed confidence that authorities from both sides would be vigilant, but the concern among people who restored classic Japanese cars and even modern ones was a real one.

"I also own a 1988 Honda Civic and some body parts for example, are sourced from wrecker's yards.

"I'm confident that Japanese and Malaysian government agencies will look into this."

Read more: Fears over 'tsunami cars' landing in Malaysia http://www.nst.com.my/nst/articles/08jipp/Article/#ixzz1H9CHpkQ0

 END OF ARTICLE...

Electric cars on local roads by June

KOTA BARU: Malaysians can expect to see electric cars on the road by June after legal standardisation of the vehicles is completed.

Road Transport Department director-general Datuk Solah Mat Hassan said the Transport Ministry was drawing up laws to enable 10 appointed companies to start producing the cars.

“We are now in the final stage of formulating the laws on the use of such cars on Malaysian roads according to the United Nations Economic Commissions for Africa standards pertaining to the electric cars.

Solah

“We first have to get down to basics where car manufacturers must meet specifications formulated like the type of battery, maximum speed and the braking system,” he said Friday after opening the Malaysian Driving Institute Association annual general meeting and dialogue session.

Solah also said Parliament passed an amendment to the Road Transport Act 1987 last year to accommodate the electric cars in the Act whereby only the chassis numbers of the electric cars need to be registered at JPJ.

He also said the ministry was working out other details on how to convert electric power to horsepower and the amount of road tax.

Earlier, in his speech, Solah said the department needed the cooperation of driving institutes to self-regulate when handling new driving students.

He said the move would help create competition among the institutes to produce competent new drivers.

 

SOURCE...  

Liberalisation in the used car market?

The Star Business, Saturday March 19, 2011

SOURCE...


Liberalisation in the used car market?

THE issue of Approved Permit (AP) has long been a contentious subject and a target of constant criticisms.
Introduced in 1970, the objective of the AP system was to promote and provide opportunities for bumiputra entrepreneurs in the automotive sector.

Part of the review of the National Automotive Policy (NAP) announced in October 2009 by the Government and aimed at creating a fair, liberal and transparent policy included doing away with the AP system.

A used car dealer in the Klang Valley. ‘Not everyone can afford new vehicles and many also do not want the hassle of paying a car loan,’ says a dealer.

 

Under the NAP, open APs (which allows the bumiputra holders to import any brand of car from any country) will be scrapped by Dec 31, 2015, while franchise APs (which allows holders to import specific brands and makes from its principal) will be terminated by Dec 31, 2020.

The question is whether this would actually happen. Under the first NAP in 2006, the AP system was supposed to be abolished by 2010.

No political will

However, when the time came to implement it, many believe that the Government buckled under pressure and ended up postponing the termination of the open AP and franchise AP systems to 2015 and 2020 respectively.

“The APs are said to be given away free to the (bumiputra) entrepreneurs to kick-start their businesses, but over the years, many of them ended up selling them to third parties for profit rather than importing cars for themselves,” says a local used car dealer, who wishes to remain anonymous.
At Budget 2010 two years earlier, the Government slapped a RM10,000 fee for the issuance of each open AP.

The RM10,000 charged, meanwhile, would be used by the Government to set up a fund, with the money to be used to ensure smooth and orderly shift of bumiputra entrepreneurs to other business sectors.

“The RM10,000 fee is a burden for used car dealers as it can cost between RM40,000 and RM50,000 (for us) to purchase an AP. Of course if it's a more expensive car, the (AP) cost would be higher,” says the used car dealer.

With the abolition of APs, it would be a “free-trade” system, he says. “That means that anyone would be able to import vehicles.”

A Klang Valley-based used car dealer doesn't believe that a liberalisation of the automotive industry, especially the abolition of APs, will ever happen.
He says although the abolition of the open AP system by 2015 is a good move and sounds promising, he thinks it won't happen given the strength of the lobbyists.

“How can they abolish the APs? If that were to happen, so many bumiputra business people would be affected. You can talk about it, but I don't think it will happen at least not in my lifetime!”

Proponents of APs

The Association of Malay Importers and Traders of Motor Vehicles Malaysia (Pekema) meanwhile, is hopeful that APs will be maintained.

Vice-president Sharifah Noor says bumiputra entrepreneurs that were dependent on APs would be hurt as they had invested considerable sums in the business.

She says the automotive business is its members' main income stream and a springboard for them to venture into other businesses.

“Even though our members have diversified businesses, the cash cow is still the AP business. Removing it (the AP) will affect their other businesses.

“Our members contribute a lot to the Government in terms of import and excise duties as well as sales tax.
“If you don't look after their interests, there will be some impact on the country's economy,” Sharifah says.
Earlier last year, it was reported that Pekema Sabah branch had asked for the review of the (RM10,000) levy charged on open APs to import used vehicles. Pekema Sabah had also requested the Government to review the policy to end the AP system.

Pekema Sabah chairman Rozman Isli says the levy of RM10,000 for the issuance of each open AP is a burden to members, especially during the economic slowdown.
Sharifah says Pekema has proposed to the Government to split payment of the RM10,000 levy into two parts to make it easier for its members.

“The levy has been approved and Miti (International Trade and Industry Ministry) is finalising it with the Road Transport Department,” she says.

Earlier this year, it was reported that Pekema Sarawak had urged the Government to set up the Bumiputra Economic Performance (BEP), a unit akin to the Performance Management and Delivery Unit to specifically plan, implement and monitor the economic performance of bumiputras.

The BEP is expected to be a permanent secretariat and headed by a chief executive officer with ministerial rank who reports directly to the Prime Minister, according to Pekema president Datuk Zainuddin Abdul Rahman.

The structure would allow BEP to oversee matters related to bumiputra economic agenda including overwriting the authority of certain heads of government agencies if needed.

Poser for used car dealers

For dealers of imported used parts, “D-Day” is just around the corner. Under the NAP, the importation of used parts and components will be prohibited from June 2011. Safety and environmental concerns are the main reasons for this policy.

Tan, a Penang-based used parts dealer, believes this policy will cripple the used car business.
“Thousands of players are involved in the used parts business in the country. This policy will kill us.
“But don't just think about the business owners. What about the employees? In the end, there will be hundreds of thousands of people that will be unemployed,” he says.

Tan adds that the Government should conduct a study on the impact before the policy is implemented.
“Banning used parts would also mean that if you have a year 2000 Toyota, getting new parts for an old vehicle would be difficult.”

Chang, a used parts dealer in Kuala Lumpur, says it is a misconception that used parts are less reliable than new parts.  “Cars break down every day. This can range from a new car of three months to one that's been around for a decade.”
Chang says not everyone can afford new vehicles, adding that many also do not want the hassle of paying a car loan.

“Used parts are also more affordable and contrary to popular belief, last a long time,” he says.
According to an article on insurance web portal Malaysia Insurance Online (MIO), imported used parts and components are actually cheaper than those manufactured locally. It also says imported used commercial vehicles also provide cannibalised parts for the industry.

From the insurance industry perspective, MIO says it is not uncommon for claims personnel to tweak part prices when assessing the claims quantum.
“The tweaking is to put in some second-hand or cannibalised parts as replacement for the damaged ones.
“Those used parts are important in scaling down costs for the industry to contain the ever deteriorating loss ratios.”

MIO adds that ultimately, the insured will benefit from the used parts industry.
“While the facts are such, caution should not be thrown to the wind the escalation in theft of motor vehicles is also the result of increasing demand for cheap cannibalised vehicle parts.”

END OF ARTICLE:
l

ARTICLE: The attraction of hybrids

The Star Business: Saturday March 19, 2011

The attraction of hybrids

By EUGENE MAHALINGAM
eugenicz@thestar.com.my

THE current surge in demand for hybrid vehicles in Malaysia can largely be attributed to the Government's decision to grant full excise duty exemptions on such cars below 2,000cc until year-end. This was announced during the tabling of Budget 2011 in October 2010. It gives a glimpse of what we can expect when the country's automotive sector moves towards a fully liberalised and tax free structure.

Prior to Budget 2011, the demand for hybrid vehicles has been pretty low, mainly for two reasons the relatively high purchase price and a weak understanding of and appreciation for hybrid technology.
With lower prices after excise duty waiver, public awareness of the benefits of hybrid cars has picked up considerably, and with that, sales of such cars.

Honda is getting over 2,300 bookings for its Insight hybrid car.

 

Cars that were previously off limits no longer are, and consumers have more choices when it comes to buying new vehicles.

“As cars are more of a necessity these days, overpriced cars are inhibitive for customers,” says an industry observer.

“With access to hybrid vehicles, customers have access to some of the latest technologies that other countries have long enjoyed. This is a move forward for us,” he says, adding however that the current models are still not affordable for everyone.

“It's still a bit expensive. Hopefully, national car companies in Malaysia will take up the challenge of offering hybrid vehicles that are more affordable for the masses.

“For now, I feel that only the reasonably affluent can enjoy the benefits of hybrid technology.”

UMW Toyota says it has received over 700 bookings for its Prius hybrid.

 

According to reports, national car company Proton plans to start offering hybrid vehicles within the next two years while Perodua will still continue to manufacture cars with internal combustion engines.
Other industry observers believe that the excise duty exemption on hybrid cars is like a shot in the arm to this vehicle segment.

Says Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad: “Last year 327 units of hybrid cars were sold. This year, the hybrid car sales could jump five fold based on the number of bookings received by Honda Malaysia Sdn Bhd and UMW Toyota Motor Sdn Bhd.”

UMW Toyota Motor and Honda Malaysia currently offer the Toyota Prius and Honda Insight respectively. The Prius and Insight start from RM139,900 and RM98,000 respectively.

Kavan Mukhtyar believes 2011 will be a big growth year for hybrids in Malaysia.

 

When contacted, a UMW Toyota spokesperson says it has received over 700 bookings for its Prius to date.
While Honda Malaysia says the company has received over 2,500 bookings for its Insight.

Aishah says the incentive should be extended for at least another five years (and not on a yearly basis).
“This is because short-term and ad hoc incentives will not build market acceptance and create technology awareness among consumers. It is also difficult for the industry to draw up long-term plans to evaluate the feasibility of introducing more hybrid and electric cars.”

Frost & Sullivan partner and automotive and transportation practice head for Asia-Pacific Kavan Mukhtyar believes that 2011 will certainly be a big growth year for hybrids in Malaysia.

“We expect this year's volume to be around 3,400 units. Globally it is observed that when the price difference between an internal combustion engine vehicle and a hybrid is less than 20%, then the volumes start to pick up.”

Aishah believes the hybrid segment (below 2,000cc) could see the biggest growth in terms of percentage, but not necessarily in volume.

Liberalisation for all?

For now, the Government's incentives for hybrids are limited to vehicles below 2,000cc. Luxury hybrids, a segment of vehicles above 2,000cc, were overlooked at Budget 2011 and consumers of this segment are not exempted from excise duties.

Companies offering luxury hybrid vehicles in Malaysia are Porsche distributor Sime Darby Auto Performance Sdn Bhd, which offers the Cayenne S Hybrid, and Lexus Malaysia Sdn Bhd, which currently sells three models RX450h, LS600h L and CT200h.

However, the CT200h which comes with a 1.8-litre petrol engine qualifies for the excise duty exemption under Budget 2011. The CT200h starts from RM172,603 (on-the-road, with insurance).
Frost & Sullivan Asia Pacific automotive & transportation practice consultant Ahmad Faridz Dzulkarnain believes the exemption of import and excise duties should be extended across all hybrid models regardless of engine size.

“Essentially, the promotion of hybrids should be as clinical as possible to ensure all potential hybrid car buyers can benefit from the incentives provided,” he says.
“Many potential buyers and dealers of luxury hybrid models will definitely find this move encouraging,” he adds.

An industry observer concurred that by exempting duties across the board, it could help liberalise the local automotive sector and even encourage more foreign-player participation.
“There are many foreign companies that would like to enter Malaysia because it is the largest passenger car market in Asean.

“But not many will be able to sell their products due to limitations like that for hybrids. This will deter them from coming in and force them to seek opportunities elsewhere.”
Aishah says the MAA is supportive of excise duty exemption for all hybrid vehicles.
“It should be opened to all categories of vehicles, including commercial vehicles.”

Kavan concurs: “It should not be confined to just below 2,000cc engines. The Government should include all hybrid engine sizes, green diesel technology cars, environmental friendly cars, electric and others.”
Faridz says that with duties exemption, sales of luxury hybrid vehicles would improve just a small fraction of the total hybrid sales expected in 2011.

“This is because even with the exemption, the price points of these luxury hybrids will still be on the higher end. Hence, the purchase will still be limited to high-income group.”

Currently, the on-the-road (without insurance) price of the Lexus RX450h, Lexus LS600h L and Porsche Cayenne S Hybrid starts from RM520,000, RM976,699 and RM720,000 respectively.
Faridz reckons that with the excise duty exemption, Lexus and Porsche could see a 40% to 45% reduction in the price of their hybrid offerings.

That means luxury hybrid cars would be tentatively priced at RM286,000 to RM312,000 for the Lexus RX450h, RM548,000 to RM598,000 for Lexus LS600h L and RM396,000 to RM432,000 for Porsche Cayenne S Hybrid.

For Porsche, the new pricing of Cayenne S Hybrid would make the vehicle marginally cheaper than its petrol-based Cayenne (that starts from RM550,000), which is also the company's top seller.
Faridz says this could result in potential Cayenne buyers purchasing the hybrid variant simply because it is priced lower than the other variants.

“Although these buyers may not initially intend to purchase a hybrid, but because of the attractive price points, the hybrid variant appears to be the most appealing in the product line-up.”

Lexus Malaysia could not be reached for comment. However, Sime Darby Auto Performance chief executive officer Arnt Bayer is hopeful that the Government would consider opening up the hybrid market at the next budget.

“The Government's decision to exempt excise duties on hybrids below 2,000cc is definitely a good approach to drive the green environment strategy,” he says.

However, Bayer says the target would not be met if the exemption was not given across the board because some automotive manufacturers do not have such products with engine below 2,000cc.
“Porsche tries to introduce the hybrid concept in the luxury and performance segment but it cannot benefit from the scheme,” he says, adding that the company sold about 10 Cayenne S Hybrid models last year.

 END OF ARTICLE...

 

 

ARTICLE: The road to liberalisation

The Star Business: Saturday March 19, 2011

The road to liberalisation

By JAGDEV SINGH SIDHU
jagdev@thestar.com.my

TIME is ticking and there is a lot to be done. The Malaysian automobile industry, long cradled by protectionist measures, is seeing imminent liberalisation creeping up over the horizon and there is a lot that needs to be corrected and strengthened before the car companies and vendors get set for an open environment.
“Malaysian Automobile Association (MAA) members would like to see liberalisation brought forward with certainty so that they and their principals would be able to strategise future plans,” says the association's president Datuk Aishah Ahmad.

Datuk Aishah Ahmad ... ‘MAA would like to see liberalisation brought forward with certainty.’

 

The blueprint for liberalisation has long been known. The National Automotive Policy (NAP) review in 2009 spelt out the steps that will be taken by the Government to slowly and eventually liberalise the automobile industry.

According to the schedule, the controversial import permits (APs) will be dismantled by end 2015 and franchise APs by the end of 2020. Imported used parts will be phased out in June this year and the Government recently announced it will stick to the original timeline. New conditional manufacturing licences were issued, fuel standards will be adopted and although postponed right now, a vehicle end of life policy will be introduced.

While AP holders will surely kick up a fuss on the potential loss of business, there is very little that can be done as free trade agreements have been signed between Malaysia and other countries which demand fairer market access. Malaysia has signed the regional Asean Free Trade Area (Afta), and is implementing Asean FTAs with China, Japan, Korea, India, Australia and New Zealand.

The country also has bilateral FTAs with Japan, Pakistan and New Zealand.

Given the urgency, the Malaysia Automotive Institute (MAI), an agency under the International Trade and Industry Ministry (Miti) tasked with coordinating and implementing the broad objectives of the NAP, has already set out to work.

“At the end of the day we want our automotive industry to be competitive,” says MAI chairman Datuk Kamaruddin Ismail.

Will car prices fall?

Liberalisation will likely see import tariffs for cars outside of Malaysia cut. Currently cars imported from countries in South-East Asia have zero import duties levied on them if local content requirements are met.
The general belief is that car prices should fall for cars imported from outside this region. Sadly, that may not be the case.

Mercedes-Benz Malaysia president and CEO Roland S. Folger thinks liberalisation does not necessarily mean cheaper cars or automotive products. Aishah concurs, adding that liberalisation might not lead to lower duties but will create a more competitive environment with level playing field.

“It depends on the model of liberalisation. In general going by global trends, liberalization increases the extent of competition resulting in lower prices, more models,” says Kavan Mukhtyar, Partner & Head of the Automotive & Transportation Practice Asia Pacific at Frost & Sullivan.

“As prices are lowered, the sales volume will witness a healthy growth. However liberalisation should be timed according to the priorities of the nation. Too rapid a liberalisation can potentially have an adverse impact on industries and local employment.”

Opening up the field

The scenario being painted is that when full liberalisation takes place, the marketplace would be different than today. Access to Malaysia from foreign car companies, especially from the free trade agreements signed with Japan, South Korea and China which will kick in at the latest in 2018, will see equal treatment accorded to cars imported from Southeast Asia.

“Governments around the world want to benefit from the opportunities arising from this trend. However every free trade agreement could present several challenges for certain industries in the home market,” says Mukhtyar.

“In the Malaysian context, the automotive industry will face stiff competition from liberalisation. The benefits may be greater foreign direct investments. I am sure the Government will carefully consider the benefits versus challenges from liberalisation while planning the timelines.”

One example where a country has benefited from liberalisation has been Thailand.

In the past, detractors have said Thailand relies too much on foreign input, has no indigenous automotive technology and their industry represents a “screwdriver assembly” and not pure manufacturing.
Since then, the scepticism has waned as more sophisticated and large scale manufacturing has taken place in Thailand, boosting its economy through job creation and export earnings.

While Thailand has leaped forward in growing its automobile manufacturing base, Malaysia's has somewhat stagnated as domestic production from the national makes, although rising, is no where near that of Thailand.
Even so, it may not be too late for Malaysia.

Years of nurturing home-grown talent has paid off in some ways and for DRB-HICOM Bhd, its CFO Datuk Lukman Ibrahim believes there is a rush to get as many foreign car companies to establish operations in Malaysia before 2015 as possible.

“We should accelerate and capture as many companies as possible into Malaysia,” he says.
“And we should open up in giving manufacturing licences now instead of later.”
That urgency might be a reason why DRB-HICOM decided to rope in Volkswagen as a partner in its upcoming assembly operations in Malaysia. The entry of big names into Malaysia which are not already established in South-East Asia is a coup for Malaysia.

“Objective of liberalisation is to make Malaysian car companies more competitive not only in Malaysia but also in the international arena,” says Aishah.

“Companies have to be prepared and move towards stiffer competition. Only those who can take the global onslaught will survive.”

The tale of two national carmakers

No doubt about it - Proton and Perodua need to get set for rising competition.
Towards this end, a merger of these two companies that would result in the scale and strength plus the entry of a Japanese foreign partner in Daihatsu and Toyota has been mooted. However, those plans have been shelved with the Government less keen to do a forced merger.

But the impact on these companies, which currently command a market share of 60% in passenger cars, would be tremendous.

Principals of non national car players would most likely rationalise their CKD operations in Malaysia vis-a-vis their production bases, particularly, in neighbouring countries.

As it will be a huge game changer for the national makes, the MAI has asked Proton and Perodua to provide details on the companies' gameplan in a more open environment.
“They have a target of 2015 to reduce cost by a certain percentage and to improve quality,” says MAI CEO Madani Sahari.

“For full realisation of the potential benefits that market liberalisation has to offer, timing is of essence and it should be based on the readiness of the domestic economic sectors, automotive including, to face the challenges that market liberalisation will bring to bear,” says Proton in a response to queries from StarBizWeek.

“It is essential that the Government develop a roadmap on domestic market liberalisation to enable all relevant stakeholders along with the whole value chain, which include manufacturers, assemblers, dealers and vendors to be aware of the measures to be undertaken by the Government.”

The potential downside

There are also dangers of liberalisation for the domestic players. One example is Australia where the dismantling of protectionist measures has seen one domestic player fold and the short-term pains were quite severe for the industry.

Proton believes that could be avoided if there is proper planning, without which the consequences for Malaysia too will be economically dire.

“History has shown in many instances where once dominant domestic economic sectors went into oblivion with its place taken by foreign businesses due to the wrong timing of market liberalisation, albeit with clear and good intentions,” it says.

“All the efforts of the Government to develop and promote the domestic automotive industry thus far would be in vain.”
Engaged in discussion with the Government as to how to prepare for full liberalisation, Proton too thinks full liberalisation will see more foreign makes set up shop in Malaysia and that will help create economies of scale and eventually aid the vendors.

“Companies such as Proton would benefit from higher quality and cheaper components due to cost reductions of local vendors as a result of greater economies of scale provided by the foreign OEMs,” it says.

The race 

Two imperatives - cost needs to come down and scale bumped up. With demand for cars expected to rise substantially in Southeast Asia in the next 10 years, more production capacity will need to be planted in this region.

“All companies in the automotive industry in Malaysia need to focus heavily on building competitiveness. Key areas of focus would be to reduce cost, obtain economies of scale through exports, build product development capabilities,” says Mukhtyar.

To lower costs, the vendor system in Malaysia needs to become more competitive.
Proton says part of its roadmap is to create growth via its export programme, in which its vendors will play a crucial role.

“To enable us to compete successfully in the overseas market, we need the support and the versatility of our vendors as a significant part of the costs of the car is attributed to component costs,” says Proton.
“Versatility in terms of cost competitiveness, quality and technological depth are critical in supporting Proton to achieve its objectives as outlines in our roadmap.”

Vendors might feel that its not getting the support of scale from the domestic car makes to be more competitive. For one, local production is growing slowly and not all vendors are in the pink of financial health. Secondly, rebadging activity conducted by Proton might not see local vendors get the type of business like a car designed and manufactured by Proton.

Furthermore, should export programmes lead to the outsourcing of component production offshore Malaysia to a company in a foreign land, like what is happening in China, then vendors fear components made there might come back into Malaysia and compete with the parts made here.
That would be, in a nutshell, counter productive.

END OF ARTICLE...

Tata keen to work with Proton, says DPM Muhyiddin

Tata keen to work with Proton, says DPM Muhyiddin

March 10, 2011, By Danny Tan  

SOURCE: PAULTAN.ORG (Click on the Title - in Blue, underlined for the link to source).

Deputy Prime Minister Tan Sri Muhyiddin Yassin, who is on an official visit to India, has revealed that Indian carmaker Tata Motors has expressed interest to enter the Malaysian market. The maker of the world’s cheapest car plans to do this by working with national carmaker Proton.

“Mr Tata (Ratan Tata, chairman of Tata Group) is keen to work with Proton again. About seven or eight years ago there were some joint discussions to manufacture cars but nothing came out of it. Now our automotive policy is more liberal and there are new opportunities,” Muhyiddin said.

“It’s now up to the Proton management to study this proposal and whether a car like the Nano can be brought into Malaysia. Perhaps we can also come up with a kereta rakyat costing about RM20,000, modelled after the Nano,” the DPM suggested to Malaysian journalists in Mumbai.

“He felt there should be some synergy because they had been in the automotive industry for a long time. He can bring his technical team to discuss with Proton or Perodua,” added Muhyiddin, although we’re not sure if Perodua, which is part owned by Daihatsu and has its own compact car plans, will be interested in such a development.

A cheap Tata Nano based kereta rakyat, anyone?

 

Motorists go the extra mile for the number plate of their choice

 Motorists go the extra mile for the number plate of their choice

By FLORENCE A. SAMY and LESTER KONG
newsdesk@thestar.com.my

 KUALA LUMPUR: Malaysian motorists may be reluctant to pay their summonses but they will splurge a mind-boggling RM150mil every year for the number plate of their choice.

Records from the Road Transport Department showed that the highest bid was RM300,100 – for the number plate MCA 1 two months ago. The same bidder, Asset Nusa Sdn Bhd, also spent RM101,000 to acquire MCA 2.

The bid overtook the RM242,000 for TAY 1 last year. Prior to that, the record was held by a businessman who reportedly paid RM200,900 for TAN 1.

The JPJ website has listed out the bidders and amounts paid for the MCA 1 to MCA 9999 plates for vehicles registered in Malacca.

Among them were Noraini Abdul Ghapor, who spent more than RM19,000 on two numbers (RM14,444 for MCA 4 and RM4,888 for MCA 7777), and Tan Lay Kang, who forked out RM42,000 for three numbers (RM15,400 for MCA 8888, and RM13,300 each for MCA 3333 and MCA 9999).

Another is MCA 1949, purchased by the MCA for RM2,200 to symbolise the year the party was founded.
Duyong state assemblyman Gan Tian Loo from Malacca spent RM28,600 on MCA 5.

But it isn’t just the auspicious numbers that get the people’s attention.

A news report in 2004 noted that the plate TAH1 was bought for RM14,300 by someone who must have had a sense of humour.

Also, someone posted on a web forum several years ago that the most beautiful number plate he had seen was BBB 888 as it was designed like a piece of art.

Former Penang DAP strongman Gooi Hock Seng went around with MR 6001 to reflect his surname.
Some motorists are willing to hold off the purchase of their vehicles until they get the right number plate.
T. Manuel, who bid for 1988, said: “I waited a while and finally got it for only RM300.”

Another motorist, M. Phylis Mann, said she paid RM200 for the number 1798, which she said signified long-term prosperity.

In the past, JPJ had also released special licence plates for major events such as the 1998 Commonwealth Games and meetings of Asean and the Organisation of Islamic Conference.

“I will not be surprised if we get huge bids for plates starting with WWW – the acronym for the World Wide Web,” Transport Minister Datuk Seri Kong Cho Ha said.

Another possible popular choice would be the Selangor plate carrying the letters BMW.
The JPJ has earned significant revenue from tenders of special numbers, which is its third highest source of revenue after the renewal of road tax and driving licences.

Currently there are 21,250,145 registered vehicles on the road.

Related Stories:
KL licence plates may get suffixes attached

 

Higher motoring premiums next year

The Star, Friday, February 25, 2011.
 
 SOURCE

PETALING JAYA: Motorists will need to pay more for their insurance premiums from next year under the new motor framework but will reap the benefit of faster claims.

Bank Negara assistant governor Abu Hassan Alshari Yahaya who announced this on Friday said the premiums were not expected to have a material impact on the low-income group and the increases would be “gradual”, spread over four years.

After 2016, the premiums would be liberalised and be determined mostly by market forces.

“The new framework which will encompass efficiency enhancement measures is also expected to improve time taken to settle claims from the current average of 1 year to 5 years to 6 - 18 months,” he said.

Abu Hassan stressed that the adjustment would be gradual and “manageable”, refuting a news report published by a local daily on Thurday which stated that motorists may see premiums rise by about 250% and 450%.

“That is totally incorrect,” Abu Hassan said.

Citing preliminary figures for certain segments, he said for motorcycles 100 cc and below, the increase would be between  an annual RM1-RM3.50 (for third party insurance) and RM1-RM2 (for comprehensive insurance)  whereas for cars 1,500 cc and below,  the increase would be between RM6 to RM34 (third party)  and RM7 and RM19 (comprehensive).

The amount of premiums paid would be dependable on factors such as the vehicle’s age and the motorist’s history of claims.

“The public can take some adjustments, the fact is that  insurance premiums have not been adjusted for a very long time,” he said.

He said engagements had been held with key stake holders  such as the police, hospitals and judiciary and a formation of a joint committee among these stake holders to oversee the effective implementation of the proposed framework’s efficiency enhancement measures would be established.

The current motor insurance rating framework has not been reviewed since 1978 and insurance companies have constantly raised the issue of third party motor insurance business being unprofitable given low premiums which did not commensurate with high claim costs.

According to Bank Negara’s presentations slides, the motor insurance business incurred an estimated annual loss of RM650mil as at 2009/2010.


End of article.


That's all folks, thanks for having the time and patience to read this blog entry.

Do video gamers make lousy drivers?

People who regularly play driving games are poorer drivers, according to a study by Continental Tyres.

Researchers found motorists who play on driving games such as Need for Speed and Formula 1 are more likely to crash, run a red light and are less successful at carrying out every day manoeuvres.

They are more likely to attempt risky manoeuvres, suffer from road rage and be stopped by the police.

And they are considered "over-confident" by non-gamers and a potential risk because they might repeat their virtual driving approach in the real world. 

Tim Bailey, safety expert for Continental Tyres which carried out the study, said: “This is an interesting piece of research. It seems that while gamers develop useful skills and are more confident, they need to apply some balance with a sensible assessment of risk.

“Playing computer driving games means good concentration levels and improved reaction times, however, they can take more risks than non-gaming drivers, possibly due to the lack of real consequences in games.

“The most important issues for driving safely are concentration, an appreciation of road and vehicle conditions and an awareness of potential risks. Clearly driving games can develop these skills but that has to be balanced – driving on public roads is never a race.”

The study of 2,000 motorists consisted of 1,000 gamers and non-gamers aged between 17 and 39 and quizzed them on their driving habits and attitudes.

It found while gamers think they are better behind the wheel, in reality they are far from it. They rated their driving skill at an average of six out of 10 compared to non-gamers’ five.

And they also claimed to have quicker reaction times, better anticipation of events and greater understanding of the car’s dynamics – such as gear changes and cornering.

However, when quizzed further, they tend to speed more often, claim on their insurance more regularly and believe that any problem can be solved by resetting their game.

Peter Rodger, Institute of Advanced Motorists chief examiner, said: "I am not surprised that regular gamers find themselves making the same decisions and judgements when driving for real as they do when in the virtual world. The issue is that when actually driving, our actions lead to 'real' results, and mistakes have very real consequences."

Gamers also appear worse parkers having crashed into more stationary objects and are twice as likely to scare others with their antics on the road.

It also emerged that the longer they spend  on games like Grand Theft Auto and Gran Turismo each week, the worse they are behind the wheel.

Those who play for more than eight hours a week have been in three times as many accidents as someone who plays for less than one hour.

But non-gamers didn’t emerge completely squeaky clean in the report.

It revealed those who don’t pick up a games controller take at least one more attempt on average before passing their test and have caused twice as many prangs to their vehicle in the last year.

“We are not leaving it at that though,” said Bailey, “We are working with the Institute of Advanced Motorists to put gamers through their paces and have their driving independently assessed. It will be interesting to see those results.”

One in five gamers said it makes them a better driver and more than half would be confident to teach a learner driver compared to 21 per cent of non-gamers.

But just 16 per cent of motorists were in agreement that playing driving games makes someone a better driver, while four in 10 said video games contribute to reckless driving.

And only seven per cent of drivers believed driving games help you become more alert in real life and assess risk more accurately.


SOURCE: Star Motoring

 

 

Forget merger, think Proton-Perodua alliance

Forget merger, think Proton-Perodua alliance

SOURCE: Star Motoring  via BERNAMA

In fact, they are already cooperating in a limited way by having common parts vendors.

Currently, Perodua and Proton share 91 vendors. Even now, Perodua makes Campro cylinder heads for Proton.


Car industry analysts believe that both companies could also cooperate in logistics support like transportation of new cars or maybe there could be outlets that could sell two national brands.

What needs to be done is to take these linkages to a higher level, which can be further helped with the consolidation of the auto vendors in the country.

This is where the Ministry of International Trade and Industry can help and show the way by facilitating and consolidating local vendors.

They have been consolidated from 500 to about 250 now with nearly 100 shared by Proton and Perodua.

Pushing for higher quality and competitiveness will also help further develop competitive vendors for auto firms not only for the country also the region.

It must be remembered that the auto vendors do not only service Proton and Perodua, but the entire automotive industry in the country.

Also, it is only fair that Perodua be given the chance to implement its five-year road map premised on improving quality, costs and efficiency to stay competitive as a regional auto player.

It plans to reduce costs through efficiency, a move seen as crucial to keep the prices of its new cars low.

Otherwise, the company will be forced to raise car prices to achieve returns on investment since a sizeable sum is spent for every new model and maintaining brisk sales for Perodua cars.

It is also to make Perodua competitive in the post-2015 scenario, and in this regard, vendors have to seize opportunities and see the big picture and not just be vendors to Perodua and Proton alone.

Perodua's long-term plans is wrapped around a green and economical technology called metal-free liquid feed cell system.

There could also be interest from new vendors, foreign ones, who could own up to 100% equity, and this means that local vendors would be left out if they didn't shore up their capability, efficiency and quality as Perodua and Proton may resort to cheaper but quality vendors to stay competitive.

To keep strong interest in the brand and stay ahead in terms of market share, Perodua is expected to roll out the replacement model for the Myvi later this year although orders for the existing model, introduced five years ago, is still going strong.

For 2010 Perodua sold some 188,700 cars with an industry market share of 31.2%.

The Myvi is the best selling model with nearly 78,000 units sold in 2010 and is the highest selling model for five years running.

Analysts say there will be major enhancements in the new model compared to the current Myvi.

There will also be a special edition Alza, which will pay tribute to former Prime Minister Tun Dr Mahathir Mohamad as the man who jump-started the country's automotive industry.

Some of the proceeds will go to the Perdana Leadership Foundation as Perodua's Corporate Social Responsibility.

Under its five-year plan to remain a viable auto player, Perodua has successfully convinced Daihatsu to locate an electronic automotive transmission plant in Serendah this year, which will likely entail an investment of between RM200mil-RM250mil.

Perodua sees this project as one where Proton can also come in to collaborate and help consolidate the local auto industry in terms of upskilling and technical know-how.

Perodua also aims to double its engine components export business from about RM25mil a year currently to RM50mil in three years' time.

This will be done through increasing the export volume to existing countries such as Indonesia, Pakistan and Japan as well as looking for new markets.

On the export of completely-built-up units, Thailand and South Africa were quoted as countries Perodua is keen to explore.

This is an area where local vendors could reap rewards if they are competitive as their markets are not limited to Malaysia but where Perodua and Daihatsu have a strong presence.

The government had clearly pointed out that it wanted to see the two manufacturers emerging as highly competitive entities able to stand on their own in a post-liberalisation period under the Asean Free Trade Area as well as through the World Trade Organisation.

Against such a backdrop, it is best both companies endeavour to raise their level of competitiveness to prepare for post-liberalisation period under the National Automotive Policy and help Malaysia emerge as a regional auto hub for Asean as well export national cars.

But exporting national cars to Asean can be sticky as the technical partners might not be too keen in seeing Malaysian cars compete with their cars in Asean.

In addition, it takes a lot of effort and expense to develop one's own brand as Perodua had found in some markets.

A more acceptable arrangement could be that the national car maker produce the cars to be sold under the technical partner's brand name.

Although, it might not amount to selling the national car overseas, foreign exchange earnings will still accrue to the country even if they are sold under a different name.

Analysts said that Perodua has indicated to the ministry that it has the ability to undertake this on behalf of Daihatsu in markets that the latter may have diminished interest.

At the end of the day, it means that Perodua can reap better economies of scale and bring in valuable foreign exchange by being a contract manufacturer for its principal but the process can also help the local auto industry to flourish in that local auto components will be used.


It is for this reason Perodua is pushing local vendors to upgrade their quality, efficiency and productivity so that they can stay relevant under more competitive conditions post-liberalisation.

Another proposal is for Perodua to both export the Perodua and Daihatsu brands but for different models in markets where Perodua has already built up a strong brand presence.

There is no denying that one of the difficulties towards a merger involving equity holdings as Perodua's technical partner, Daihatsu, may not see a strong business case to work with a different entity with different technical partners and philosophies.

That aside, there are many areas that Proton and Perodua can work on and work together in moving Malaysia's auto industry up the value chain and entrenching it as an industry to be reckoned with regionally and globally.


 -Bernam/The Star

Price of RON97 will fluctuate every month, says minister

By RAHIMY RAHIM

SOURCE: The Star Online

PETALING JAYA: The price of RON97 petrol will be determined at the end of each month due to the managed float of oil price, says Domestic Trade, Consumerism and Co-operatives Minister Datuk Seri Ismail Sabri Yaakob.

“We will calculate the average oil price from the 1st to the 27th of each month and the average price will determine the price for the next month,” he said after launching Bank Rakyat i-Debit card Tuesday.

The price of RON97 increased by 10 sen to RM2.50 per litre, earlier this month.

Ismail Sabri said this would mean that the price of RON97 would fluctuate every month as it depended on the price of crude oil in the global market.

The RON97 petrol price also rose by 10 sen per litre to RM2.40 on Jan 4.

http://thestaronline.tv/v/6663


That's all folks, thanks for having the time and patience to read this blog entry.

 

ARTICLE: 900,000th MX-5 to set new record

SOURCE: THE STAR MOTORING.

900,000th MX-5 to set new record

 HIROSHIMA: The popularity of the MX-5 continues to grow, with Mazda producing 900,000 units on Friday.

The 900,000th Mazda MX-5 was a 2.0-litre softtop model in Germany.

This milestone was achieved 21 years and 10 months after mass production of the first-generation MX-5 started in April 1989.

The MX-5 was initially certified by Guinness World Records as the world's "Best selling two-seat sports car" when production reached 531,890 units in May 2000. Guinness updated the record when production passed 700,000 and, later, 800,000 units. Currently, Mazda is reapplying to Guinness World Records to have the record updated to 900,

During the 1960s and 1970s, numerous lightweight and fun-to-drive sports cars offered nimble handling and free-spirited open-air motoring.

In the 1980s, Mazda decided to resurrect this spirit with a new roadster for the modern age. Using the latest engineering techniques, Mazda developed the MX-5 and announced it in February 1989 as a reminder that driving could still be fun despite ever-stricter safety and quality standards. To this day, the MX-5 remains the longest enduring nameplate in Mazda's global lineup.

Nobuhiro Yamamoto, program manager of the current MX-5, said, "Since Mazda launched the original MX-5, it has undergone two complete product redesigns and a series of upgrades. Its enduring success is due to the strong support it enjoys from MX-5 fans around the world. Going forward, I will strive to keep the MX-5's spirit alive while evolving it into a car that will be loved by even more people."