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April 7, 2008 |
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PROTON HOLDINGS: Recalls 34,000 Units of Savvy Model Proton Holdings Bhd has recalled 34,000 units of its Savvy model to address a potential default, manufacturing.net reports. According to the company's statement, Proton said there was a possibility of water entry into the rear wheel bearing that could lead to a malfunction of affected components. Proton's Managing Director Syed Zainal Abidin Syed Mohamed Tahir said that the recall was a standard precautionary exercise in line with industry practices. "Customer safety cannot be compromised," Mr. Syed told The Edge in a phone interview. Azharuddin Nordin, AmResearch Sdn Bhd's executive director said that the company might not bear the full cost of the recall entirely on its own, as parts suppliers could have been the ones at fault, the Edge notes. Moreover, the Edge relates, Mr. Nordin added the the Savvy is low volume in terms of overall sales, accounting for only about 3% of Proton cars sold making it highly unlikely to impact the company negatively. Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.protonedar.com.my/ -- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported as among Malaysia's worst performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter-Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner, in order to boost sales and become more competitive. |
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