TOKYO: Daihatsu Motor Co Ltd of Japan, a key stakeholder of Perusahaan Otomobil Kedua Sdn Bhd (Perodua), is standing firm against the idea of a merger between Perodua and national carmaker Proton Holdings Bhd.
“Perodua has given its view on this issue [against a merger with Proton], and we [Daihatsu] respect that. I shall not comment on this further,” Daihatsu president Koichi Ina told a press conference for Malaysian journalists attending Daihatsu’s technology showcase at the Tokyo Motor Show on Wednesday.
While Proton’s management has claimed there are potential merits on the grounds of industry consolidation, Ina’s remarks have reaffirmed the position of Daihatsu on this subject.
“Perodua is one of our highest priorities in the overseas market. We would like to further strengthen our ties with Perodua,” he said.
Daihatsu, a unit of Toyota Motor Corp, owns a major though non-controlling stake in Perodua’s sales and distribution operation in Malaysia, which counts UMW Holdings Bhd and MBM Resources Bhd as the other key stakeholders. Daihatsu holds 51% equity interest in Perodua’s manufacturing operation, however, and has installed a team of managers from Japan to run the plant in Rawang. This partnership arrangement has yielded good results for both Malaysia and Japan.
“In my opinion, a merger between Proton and Perodua won’t work because both companies have very different cultures and product lines. It’s better to keep the individuality,” said a top official in Japan’s motor industry during a casual chat in Tokyo. He added that differentiation is good for consumers as well.
Once operating only in the small car category in Malaysia, in recent years Perodua has been making inroads into the 1300cc segment with the Myvi and subsequently the 1500cc segment with the Alza mini MPV and lately the Myvi 1.5 litre model. This product expansion strategy has taken some market share away from Proton’s bread and butter segment, and Proton could view Perodua as a direct competitor.
Masahiro Fukutsuka, senior executive officer of Daihatsu, declined to comment on what’s next for Perodua’s product line-up. But he did reveal that there are plans to get Perodua more involved in areas of product development, to make cars catering for the regional market instead of producing just Daihatsu models. These are long term efforts due to the challenge of economies of scale.
“It’s under our 10-year blueprint for Perodua,” said Fukutsuka.
For this year’s Tokyo Motor Show, Daihatsu has adopted the slogan “Big Answer from Small”, which expresses its roadmap for technological innovation that offers motoring enjoyment in a compact car style.
It showcased the D-X two-seater compact sports car that is equipped with a revolutionary two cylinder-direct injection turbo engine, which aims to strike a balance between the joy of driving and fuel efficientcy. It also showcased the PICO two-seater electric vehicle for city commuting, and the FC ShoCase, which employs a next-generation liquid fuel cell technology that contains no precious metals.
This article appeared in The Edge Financial Daily, December 2, 2011.
“Perodua has given its view on this issue [against a merger with Proton], and we [Daihatsu] respect that. I shall not comment on this further,” Daihatsu president Koichi Ina told a press conference for Malaysian journalists attending Daihatsu’s technology showcase at the Tokyo Motor Show on Wednesday.
While Proton’s management has claimed there are potential merits on the grounds of industry consolidation, Ina’s remarks have reaffirmed the position of Daihatsu on this subject.
“Perodua is one of our highest priorities in the overseas market. We would like to further strengthen our ties with Perodua,” he said.
Daihatsu, a unit of Toyota Motor Corp, owns a major though non-controlling stake in Perodua’s sales and distribution operation in Malaysia, which counts UMW Holdings Bhd and MBM Resources Bhd as the other key stakeholders. Daihatsu holds 51% equity interest in Perodua’s manufacturing operation, however, and has installed a team of managers from Japan to run the plant in Rawang. This partnership arrangement has yielded good results for both Malaysia and Japan.
“In my opinion, a merger between Proton and Perodua won’t work because both companies have very different cultures and product lines. It’s better to keep the individuality,” said a top official in Japan’s motor industry during a casual chat in Tokyo. He added that differentiation is good for consumers as well.
Ina: We would like to further strengthen our ties with Perodua.
Once operating only in the small car category in Malaysia, in recent years Perodua has been making inroads into the 1300cc segment with the Myvi and subsequently the 1500cc segment with the Alza mini MPV and lately the Myvi 1.5 litre model. This product expansion strategy has taken some market share away from Proton’s bread and butter segment, and Proton could view Perodua as a direct competitor.
Masahiro Fukutsuka, senior executive officer of Daihatsu, declined to comment on what’s next for Perodua’s product line-up. But he did reveal that there are plans to get Perodua more involved in areas of product development, to make cars catering for the regional market instead of producing just Daihatsu models. These are long term efforts due to the challenge of economies of scale.
“It’s under our 10-year blueprint for Perodua,” said Fukutsuka.
For this year’s Tokyo Motor Show, Daihatsu has adopted the slogan “Big Answer from Small”, which expresses its roadmap for technological innovation that offers motoring enjoyment in a compact car style.
It showcased the D-X two-seater compact sports car that is equipped with a revolutionary two cylinder-direct injection turbo engine, which aims to strike a balance between the joy of driving and fuel efficientcy. It also showcased the PICO two-seater electric vehicle for city commuting, and the FC ShoCase, which employs a next-generation liquid fuel cell technology that contains no precious metals.
This article appeared in The Edge Financial Daily, December 2, 2011.
