Proton 'world' cars on the horizon

Proton may have surprised with the all-round ability of its latest model, the Persona, but the Malaysian company has yet to hit its straps. That's the view of Aussie Proton chief, John Startari.

Speaking to the Carsales Network at last week's launch of the new Persona (more here), Startari asserted the latest product remains essentially domestic market focussed.

According to Startari, the improvements made to the Persona are important, but the real measure of Proton's ability to target wider markets will come via the next generation of vehicles -- in particular, the maker's new MPV. Indeed, he suggests the parent company is yet to show its true mettle.

"The Persona is primarily built off the Gen2 platform. Although this car is great for this market and the UK market as well, it's just purely by coincidence. It wasn't planned that way, Startari explained.

"The new products, the MPVs and others, are products that are going to be built for a world stage... World cars..."

According to Startari, the Malaysian brand is looking hard at emerging markets.

"Their [the factory's] focus obviously has to be in the markets of rapid growth, they're not going to get that in Australia and the UK. They'll get that more out of China, India and Russia, which are the markets that are growing rapidly and markets that they can get a return on," he stated.

"I think this [time] is the crossroads really. Proton doesn't need to be a success in Australia and the UK, in reality. There's enough markets in its own region in China, India and Russia to really push it forward -- give them the volume, and the efficiencies and the economies at scale.

The UK and Australia will, however, remain important, Startari opines -- from the point of view of benchmarking the company's products against more establish brands.

"The UK and Australia are both wholly-owned subsidiaries and there's certainly no view to exiting these markets. Proton enjoys the level of sophistication and technology in these markets and can take a lot away from the data that we collect in these markets. They'll use that in future planning."

The new markets, and the fresh consumer base they offer, will the catalysts for the company to widen its offer -- and benefit local consumers, says Startari.

"The big picture is to basically venture into [new segments]," he said.

"Currently Proton's in the A and B segments and [while] that's where it's volume is, unfortunately that's [also] the lowest margin, high cost, most risky business to be in. That [situation] is a product of Proton's home market and its concentration on that home market.

"As Proton moves into MPVs and larger cars, obviously you're going to see a change there and a higher margin product. [With such products] there's not as much pressure on volume -- the critical volume [you need] to get your payback.

The first of the world products is an MPV, says Startari. Yet to be named -- at least publically -- the seven-seater will debut in Malaysia later this year. It will arrive Down Under in 2009, but only if it has an appropriate powertrain, says the local chief.

"It's [potentially] an important addition to our line-up, but only with the right engine. This is not a car that will be powered by the CamPro," he told the Carsales Network.

Startari says the Avensis/Grandis-sized MPV will arrive at under $30K and needs an engine "around 2.0-2.4-litres". He predicts it will also be the first diesel Proton to go on sale. He adds such a powerplant is vital for the car's success in both the UK and Australia.

He says Proton will use a "joint venture partner's engine" to power the new vehicle but admits the company is yet to finalise with who it will partner. According to Startari, the fact the decision is not yet made will not affect the timetable of the MPV's release.

Proton's ill-fated talks with Volkswagen was the spanner in works, it seems.

"I think [the diesel powerplant] talks had been going on for some time and obviously with the VW talks, they were all suspended -- VW was obviously a party that could give Proton access to everything it really needed going forward," Startari explained.

"When those talks were suspended, obviously Proton had to re-ignite its previous discussions. So it's not as if they're starting from scratch today -- they've been going on for some time and it's just a matter of now finalising the logistics and the financial tie-up that's associated with that."

Startari says the engineering required to unite MPV and turbodiesel powertrain can be completed in time. He asserts Proton's design practices and architecture has benefited from the company's ownership of Lotus.

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