So it now it becomes official and Big Kerfuffle/Commotion

https://www.nst.com.my/news/nation/2024/03/...arts-china-bttv



NATION
Proton suppliers in dire straits as company sources parts from China [BTTV]
By Sharen Kaur
March 13, 2024 @ 10:12am
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KUALA LUMPUR: More than a hundred parts vendors affiliated with Proton Holdings Bhd are facing severe financial strain due to escalating operational expenses, according to Datuk Low Kok Chuan, president of the Malaysia Fujian Chamber of Commerce and Industry.

In a statement, he said that despite the Proton Vendors Association (PVA) reaching out to the national car maker to address the challenges they are encountering, their appeals have been disregarded.
Low emphasised that numerous suppliers and vendors are currently grappling with financial distress attributed to dwindling orders in recent times, leading to an unsustainable business environment.

Expressing concern over the potential ramifications, Low cautioned that if this situation persists, it could lead to the collapse of many vendors, affecting thousands of employees across the automotive industry chain.

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He attributed the root cause to Proton's failure to fulfill the promised quantity of parts orders for its 50, X70, and X90 models, which has resulted in a significant reduction in production output by up to 50 per cent.
Consequently, many vendors are experiencing financial losses, forcing some to cease operations altogether.

Business Times has reached out to Proton for comment.

It is understood that the company is preparing to issue a statement on this matter.
Meanwhile, Low said the predicament has not only jeopardised vendors' production capabilities but also hindered their capital investment, expansion plans, and human resource strategies.

He asserted that, despite suffering substantial losses, Proton has shown no willingness to address the issue.

Additionally, he criticised Proton's decision to import competitively priced locally assembled (CKD) parts from China, citing the reluctance of Malaysian vendors to reduce prices as the rationale behind this move.

Such actions, according to Low, have further strained the relationship between Proton and the vendor association.

Highlighting the plight of small and medium enterprises (SMEs), Low emphasised that the surge in electricity bills and the government's announcement of a minimum wage hike to RM1,500 from July 1 last year have exacerbated suppliers' financial woes.

Echoing these sentiments, an anonymous vendor disclosed that despite Proton's initial agreement to deliver parts for 1,500 cars monthly, it has come down to only 200 to 300 cars a month.

This substantial shortfall in orders for parts has resulted in financial losses for the vendors, who are burdened with expenses related to production machinery, manpower, and other overheads.

Only for X90, I guess?

He attributed the root cause to Proton's failure to fulfill the promised quantity of parts orders for its 50, X70, and X90 models, which has resulted in a significant reduction in production output by up to 50 per cent.
Consequently, many vendors are experiencing financial losses, forcing some to cease operations altogether

may be much cheaper source it up from china

Looks like it is not just Malaysia problem

-Philippines
https://www.change.org/p/improve-parts-avai...the-philippines

So perhaps this one says it right
https://www.dsf.my/2023/06/why-is-there-sti...es-with-proton/

basically the parts problem from the geely itself ?

Statement from Proton

Proton would like to address recent media reports highlighting challenges faced by vendors associated with the company.

At Proton, we create an equitable and respectful business environment with our partners built on our unwavering commitment to fair and firm business dealings.

To achieve this, we collaborate closely with the Proton Vendors Association (PVA), the official representative for all 116 Proton vendors, having frequent discussions and joint initiatives that are mutually beneficial.


We understand there are difficulties faced by some vendors and our doors are always open to engage in equitable discussions with all PVA members, except those who are unable to provide clear evidence regarding the issues faced.

It is important to highlight proton has a history of open and constructive dialogue, and we remain dedicated to continuing with this approach for the long term.

We recognise the importance of resolving these matters quickly by working closely with all parties involved and invite engagement via official channels to resolve them at the appropriate time.

If what the news claim is founded., i.e. parts are sources from China because local parts not cost competitive but parts come short despite promised high numbers .

Anyway, you can read between the line from Proton Statement issued
What Proton has failed to addressed is parts shortage is still there. Talk is cheap

If what the news claim is founded., i.e. parts are sources from China because local parts not cost competitive but parts come short despite promised high numbers .

Anyway, you can read between the line from Proton Statement issued
What Proton has failed to addressed is parts shortage is still there. Talk is cheap

Local vendors are reluctant as well, they have investment into local parts production, but Proton didn't deliver on their promise of the minimum order quantities. Because the amount of cars Proton make & sell is much less than projected.

So, part vendors are in the red & are at risk of closure due to this.

Due to this, the price of local parts become higher, causing them to be ditched by Proton.

Proton source cheaper parts from China instead, but have issue with lead times & volume

So, main issue here is Proton themselves are the source of the problem

Blame China car, blame supplier