Proton Responds To Vendors Claiming To Be Struggling Due To High Costs

Are Proton vendors struggling due to high costs? That's what NST's report published earlier today indicates.

Earlier today, local daily New Straits Times (NST) initially published a report highlighting vendors associated with Proton Holdings Berhad are facing severe financial strains due to escalating operational expenses.

The daily cited a statement made by Datuk Liu Guoquan, president of the Malaysia Fujian Chamber of Commerce and Industry, claiming that the national carmaker disregarded vendors’ appeals to address this issue despite calls for it by the Proton Vendors Association (PVA) too.

Expressing concern over the potential ramifications, Liu even went as far as to caution this situation’s persistence could even lead to the collapse of many vendors, thus affecting thousands of employees across the automotive industry chain.

The report cites Datuk Liu Guoquan who claims the carmaker's failure to fulfill promised quantity of parts orders for its X50, X70, and X90 models as the root cause of these grievances.

Moreover, Liu also reportedly highlighted Proton's failure to fulfill the promised quantity of parts orders for its Geely-based X50, X70, and X90 models, as the root cause of this. Low notes that this has resulted in a significant reduction in production output by up to 50% too.

Considering this initial report by NST, Proton has officially responded by issuing a brief holding statement – also issued today – that’s pictured below. Through which, the national carmaker both acknowledged some of the claims made by the initial report.

Proton's official statement responding to claims made in NST's initial report about vendors claiming to be struggling due to high costs.

“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,” says Proton.

Crucially, Proton reiterated its commitment to resolve the matter through its historical practice of open and constructive dialogues with vendors. The carmaker stressed that it intends to continue practicing this approach with its vendors as well.