Talks to Save Proton failed

According to a report by The Edge, talks between car maker Proton Holding Bhd and Europe’s largest automaker, Volkswagen AG—and maker of renowned Volkswagen
Van parts--- that have began last year have not been pushing through according to what the Malaysian government is hoping for.

The weekly newspaper has reported that officials from Proton and Volkswagen had met several times but no concrete agreement has been developed. The newspaper also added that the talks have not been going well and that it seems like the German automaker has somewhat “cooled off” and appeared less eager lately.

The newspaper has also quoted a source familiar with the situation as saying, “This delay could reveal some doubts.” The Malaysian government is also under pressure to announce details of partnership for loss-making Proton, which has lost its status as the country’s biggest-selling car maker rival Perodua. The government believes that news
of Proton’s partnership with Volkswagen can help it to recover.

Last week, Proton announced its third consecutive quarter of losses which it blames on increased competition and sluggish sales. The company obtained a net loss of 281.45
mln rgt for the third quarter ended December compared to the net profit it has made a year earlier amounting to 86.51 mln rgt.

The second Minister of Finance Nor Mohamad Yakcop said that the government would release an announcement on the Proton’s strategic partner this month. Nobody knows whether it would still be Volkswagen or some other company. But according to The Edge newspaper, “If this schedule is adhered to strictly, sources say General Motors, the world’s largest automaker, could well become the partner of choice for Proton.”

The main objective of having Proton partnered with a foreign automaker is to prevent another foreseen decline in its market share as competition heats up. It should be noted that when news of a possible partnership with Volkswagen have leaked out the shares of Proton has increased but after the news of the partnership was not confirmed the shares of Proton plunged.

Aside from Volkswagen, Proton has also been in talks with GM and PSA Peugeot Citroen of France plus some three Malaysian automotive firms that have expressed the interest in purchasing stakes in the company. It should be noted that the Malaysian government owns 59 percent of Proton including a stake of 43% held by Khazanah Nasional, the investment arm of the government.

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Proton Gen2 CPS & IAFM

As many readers will already know, an upgraded version of the Proton Gen2 with a more powerful engine has been produced at the Tanjung Malim plant for some months now. However, Malaysian customers have not been able to buy this version because the first market it was introduced to was Thailand. The move to launch a new model outside Malaysia was explained by Proton MD, Dato' Haji Syed Zainal Abidin Syed Mohamed Tahir, as being a 'strategic move' which was intended to demonstrate Proton's seriousness in growing its export markets, especially so in Thailand.

"Besides using the Bangkok Motorshow for the world premiere of our new Gen2, we also wanted to show our future customers in Thailand that we are serious about selling our cars in their market. The Thai market is an important one for Proton and it is a competitive one so we wanted to have a strong product to kick off our entry," he told MTM.

From Wednesday (March 5th) , Malaysians get the same new model which is available in two equipment levels with two different variants of the Campro engine. Both engine variants are 1.6 litres but feature additional hardware which addresses the awful torque curve that gave Proton's engine family a bad name when the Gen2 was originally launched, as well as boosts power output.
The Gen2 M-Line gets the Campro with the Intake Air-Flow Module (IAFM) which is also used in the New Saga's 1.3-litre engine. The IAFM does nothing to boost output but because it varies the airflow at lower speeds, it has eliminated the dip in the torque curve and made torque generation more linear. Factory tests show that acceleration is marginally improved while fuel consumption is pretty much the same as the previous engine without IAFM. Driveability should, however, be significantly different and drivers won't have to wait till 4000 rpm for some decent acceleration.
The Gen2 H-Line (available from March 25th) , which costs RM4,000 over M-Line, gets the real Campro engine, ie with the long-awaited Cam Profile Switching (CPS) mechanism. For those who are not familiar with CPS, it is a mechanism which allows the valve timing to be altered so that there can be strong performance at both ends of the rpm range; with conventional designs, engineers have usually had to make a choice between high performance at high rpm and sacrifice low rpm driveability or vice-versa. CPS, like the variable valve timing systems of Toyota and Honda, makes it possible to have 'the best of both worlds'. However, compared to the systems in the Japanese models, Proton's CPS (which was developed and patented by Lotus Engineering, a subsidiary of Proton) is a simpler mechanism without infinite variability making it cheaper to produce.

This engine, designated Campro CPS, also has a variable intake manifold (VIM) which works like IAFM but is more sophisticated in that it also interfaces with the Engine Control Unit (ECU), thereby having more precise operation.

The addition of these two pieces of hardware - which is actually what the Campro design was originally meant to be - boosts power by 13.4% to 93 kW (125 bhp) from 82 kW(110 bhp) and adds 2 Nm of torque to make it 150 Nm at a peak of 4500 rpm. At last, the muscular character is now available at the low end and given that the first Campro was impressive at the top end, if the same characteristics are now found at the low end, this will be a very powerful engine for its class.
The extra output improves acceleration though not to the 8 seconds that some clown in the forum said it would be. Proton's claims for the 0 to 100 km/h sprint are 10.6 seconds with the manual transmission and 13.2 seconds with the automatic transmission. The fuel consumption appears to be marginally higher, perhaps underlining the fact that 'you can't have your cake and eat it'; in other words, more power does mean more fuel needed. The top speed is 190 km/h for the manual and 185 km/h for the automatic… strangely, these are the same numbers for the Campro IAFM without CPS.
There are supposed to be some changes to the gear ratios but the specific changes could not be obtained at the time of writing.
With the new engines under the bonnet, Proton can now reposition the Gen2 as a sporty model - and the performance now justifies it. Dato' Syed Zainal Abidin said that the Gen2 was never really the Wira Replacement Model (WRM) that it has been made out to be earlier as the real WRM was the Persona.
Externally, there are cosmetic changes which freshen the looks of the Gen2. The front grille is larger and the headlights now have black bezels while a rear spoiler is standard. For the H-Line, there is additional skirting to give a more low-slung look. Both new versions also get alloy rims with new designs.
Inside, the quality of materials has been improved and the door handle has been redesigned. Leather upholstery is standard for the H-Line.
The other features of the new Gen2 are as before with 4-wheel disc brakes and 15-inch wheels (195/55 tyres) as standard. Proton is still not offering dual airbags across the range and the M-Line has only one airbag. Likewise, ABS + EBD are only available with the H-Line along with cruise control.

Acknowledging that the earlier Gen2 did have quality issues (it has been rare for a Proton CEO to admit that Proton products have faults), Dato' Syed Zainal gave assurances that all the feedback was thoroughly reviewed and many areas have been improved, including the infamous power window system. He is confident that the latest Gen2 will not draw the same sort of complaints that plagued the original one.

Proton Gen-2 Was Unveiled In Thailand

In December 2007, a new facelifted Proton Gen-2 was unveiled in Thailand in conjunction with the carmaker's entry into the Thai market. It also marks the first production Proton with the Campro CPS engine installed in the engine bay. The CPS variant is a High Line model only, producing compared to a normal Campro's 110. On the 3rd of March 2008, the facelifted 2008 Proton Gen-2 was launched in Malaysia. Two variants are available. The medium line variant is powered by the Campro IAFM engine, while the high line version uses the more powerful Campro CPS engine. Exterior changes include a new front bumper and rear spoiler, while the interior gets a new dashboard incorporating a glovebox, new door panels, and leather seats for the high line version. Special Edition Sometime after the launch of the standard Gen-2, comes the special edition. It is fitted with a full body-kit, leather seats and lightweight sport rims. Handling is slightly better with the broader tires fitted and it is more aerodynamic. Comes in Matt Black and Chilli Red colour. R3 Concept
Race • Rally • Research (R3) unveiled a prototype concept of the Gen-2 R3 at the Dreamcars Asia Motorshow 2005 on July 7, 2005. The close-to-production concept was developed to gauge public response to its styling and performance. EVE Hybrid Concept At the 2007 Geneva Motor Show from 8 to 18 March 2007, Proton and Lotus unveiled the concept model of the hybrid version of the Proton Gen-2. The hybrid concept is codenamed as EVE (Efficient, Variable, Environmental). The concept model will retain the same Campro Engine as the main powerplant coupled together with an electric motor system to form the hybrid powerplant. Proton Persona On August 15, 2007, Proton launched the Proton Persona, essentially a Proton Gen-2 with an extended boot and cosmetic changes. While the Gen-2 was originally intended to replace the Proton Wira, the Persona is currently touted as an actual replacement of the Wira, which size is roughly the same as the Persona. The Wira was coincidentally exported to the United Kingdom under the Persona name; therefore, the 2007 Proton Persona is rebadged as the Proton Gen-2 Persona in the UK. Proton Gen-2 ecoLogic On August 2007, Proton UK launched the bi-fuel variant of the Gen-2 for the British market, known as the Proton Gen-2 ecoLogic. This variant is designed to be used with both gasoline and LPG. The ecoLogic variant also applies to the Proton Persona ecoLogic variant also applies to the sedan version of the Gen-2. Rebadges The Proton GEN-2 was one of two models (the other being the Proton Savvy) that MG Rover was looking to rebadge when it entered talks with Proton's parent company in the mid 2000s. Both Auto Express and autocar published shots of the car with a digitally recreated Rover grill. With MG Rover's decline at the time and its eventual purchase by the Nanjing Automobile Corporation, such plans have presumably been cancelled.

In July 2007, Proton signed an agreement with Youngman Automobile Group Ltd Co, in which Youngman will import 30,000 complete built up units (CBU) of Gen-2s and resell them under their own EuropeStar brand (known as the EuropeStar RCR), with plans to eventually develop a new range of made-in-China cars using engineering services provided through Proton's Lotus. Proton had previously done business in China (specifically, Guangdong) but withdrew due to poor sales.

Facts You Need To Know About Proton Gen2

Here's my thoughts about Proton Gen2.

The Proton Gen-2 is an automobile manufactured by Malaysian carmaker Proton, and was launched in the third quarter of 2004. The Gen-2 uses a platform which is mostly Malaysian-developed. Loosely based on a mid-90s Mitsunishi Chassis, the platform has been extensively developed by Proton and their partner Lotus. The Gen-2 was initially codenamed the Proton Wira Replacement Model, hinting that the car was to replace the Proton Wira. The name Gen-2 is an abbreviation of 'Generation 2', to symbolized the 2nd generation of the very successful Wira as the 1st Generation.

The Gen-2's platform is also used by the Proton Satria Neo (with a shortened wheelbase) and the Proton Persona (with an extended rear hang to form a more sedan-like body). Performance Lotus Cars, which is owned by Proton, was involved in the development of the car. The Gen-2 is the first Proton model to use the new Proton/Lotus developed Campro Engine. The Gen-2 has a competitive 0-100 timing of 10.5 seconds for the 1.6 manual, which makes it a highly spirited drive. Even though the S4PH 1.6L engine, the first capacity fitted to the Gen-2, is contemporary in maximum power output, it suffers from poor mid-range torque. This is due to its torque dip in the crucial 2,000 to 3,000 rpm operating range, where the torque actually decreases slightly before picking up back to its peak torque at 4,000 rpm. This torque characteristic can clearly be seen in manufacturer published engine performance curves and is widely attributed to the missing Camshaft Profiling technical feature that the engine was named after, but which was dropped from production probably for cost reasons. However, this torque dip was corrected by Proton in 2008 with a new Campro CPS engine.

The Gen-2's ECU Engine and Automatic Transmission mapping has been modified several times since the car's launch to improve perceived driving characteristics, but have not resulted in changes to manufacturer's torque and power curves and figures. Competing cars In Malaysia, the car goes head-to-head against the likes of the Hyundai Accent (Verna) and Kia Rio (Pride), but undercut these by about 20 percent. Against the ASEAN-made Honda City and Toyota Vios, the discount is even greater, at about 30 percent. Proton's price advantage in Malaysia can be attributed to a discriminatory tax structure that an ASEAN trade agreement was supposed to disallow by 2005, but which now has January 2008 as its postponed deadline. Changes and facelifts In 2005, a lower-spec version of Proton Gen-2 powered by 1.3L Campro engine was made available in Malaysia with automatic transmission option only at RM46,000.00. The 1.3 version is famous of its underpowered characteristics due to the car's heavy body weight and is made worse with the torque-dip genes of the Campro.