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Tuesday, August 01, 2006

Why Proton never penetrate US market?

When Honda enter automobile industry in Japan. Japan market has been dominated by Toyota and Nissen and Honda has difficulties to penetrate Japan's market.

When face difficulties in it home country. Honda then try to penetrate US market by setting up a factory there. Honda, the smallest automobile company in Japan then, become the first Japan's automobile company that set up factory and successfully penetrate US market. Then Toyota and other company in Japan also follow Honda foot step by setting up factory there.

After successfully penetrate US market. Then Honda able to slowly gain market share in it home country...Japan.

South Korea's Hyundai become competitive also because the company able to penetrate US market to compete with General Motor, Ford, Toyota and Honda there.

Malaysia's Proton has enter UK and Australia market. But they never enter US market.

US, a country that promote free trade via World Trade Organisation (WTO) apparently protect import of automobile to the country unless we set up a factory there, like what Honda, Toyota and Hyundai did.

It is not sure why Proton never enter US market. It market shares in UK also has been deteriorated.

There is a rumour in the market that Proton try to get Mitsubishi to become it technical partner. Actually, Mitsubishi financial position is far more severe than Proton and the company is up for sell. Proton should team up with Petronas or other financially strong company to acquired the whole company rather than request Mitsubishi to become technical partner. When we become a shareholder, we gain their technical knowledge like Lotus did to Proton.

If Proton unable to swallow the whole Mitsubishi. At least should acquired their plant in US, if any to try to penetrate US market. I don't think any automobile company able to survive without successfully enter US market.

Update: Proton's can of worms
'Board kept in the dark'
RM4 bil spent on R&D
EON faces reality
Proton: Tighter systems in place




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1 comment:

Peter said...

Surprise that you read this blog! I expect you only read my "Beauty Biotech" blog.

Oh yes, I remember you have done a research on this topic as one of your college assignment