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Car companies refute ‘lower’ prices in Utusan report

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A PROMISE MADE BUT NOT KEPT

BN in its manifesto had promised the reduction in car prices with revamping the National Automative Policy.

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One major reason is that the BN Government doesn’t want to give up the revenue from excise duty which is now RM7 billion.

What is unstated but known to us is the existence of Proton (Perusahaan Otomobil Nasional Berhad).

The protection for Proton cars remains. Proton cars could never compete with imported cars if protection was lifted even partially.

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Malaysiakini

International Trade and Industry Minister Mustapa Mohamed said the government has no plans to slash excise duty as a means to reduce car prices.

“The government has no intention to reduce excise duty for vehicles – that is now among the main source of income for the country – as an effective means to reduce car prices,” he was quoted as saying in Berita Harian today.

He said maintaining the car excise duty was important in the government’s effort to reduce the country’s deficit.

“This (car excise duty cut) will cause the country to lose RM7 billion a year in revenue thus complicating the government’s effort to reduce the fiscal deficit,” he was quoted as saying.

He added that any plans to slash car excise duty must be compensated by an alternative source of income.

However, Mustapa said the BN-led government will keep its promise of reducing car prices but through other means.

‘Car prices will still go down’

An example, he reportedly said, was by encouraging car producers to use local components, which comes with an incentive of reduced excise duty for the parts.

“Therefore when the duty charges (for parts) go down, they (car producers) can reduce sales price to buyers in a more effective and organised way,” he was quoted as saying.

Minister: Gov’t not planning to slash car excise duty

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IS IT HAPPENING? HAVE THE PRICES OF CERTAIN CARS BEEN REDUCED?

HAS THIS BN GOVT REDUCED CAR PRICES OF CERTAIN MODELS?

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Malaysiakini

Umno-owned newspaper Utusan Malaysia received another bashing from the Penang government for “lying” that car prices had dipped in line with the BN’s government ‘Janji Ditepati’ (promises fulfilled) 13th general election slogan.

Chief Minister Lim Guan Eng (left) accused the broadsheet of “racism and slander” whose contents cannot be relied on.

“Utusan lied when it said the federal government has fulfilled its election pledges of providing cheaper cars,” Lim said at a press conference.

“But the car companies have come out to refute the reports,” he added, referring to Volkswagen and Peugeot which had rejected claims of price slashing for their cars.

“This is serious and the authorities should take action against Utusan. It seems we cannot trust anything they write, perhaps we can only trust the date on the newspaper,” he mocked.

The DAP secretary-general was quick to add “this is nothing personal about the journalists but the newspaper company”.
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Umno’s ‘desperation’

Meanwhile PKR said the episode reflected the “utter desperation” of Umno in dealing with Pakatan’s ‘#TurunkanHargaKereta’ campaign to slash car prices.

“It appears that the commitment to reduce car prices by Umno-BN was made after it recognised how popular Pakatan’s ‘#TurunkanHargaKereta’ campaign was, yet until today they are unable to find a mechanism to do so without doing away with the government’s reliance on excise duties,” its communications director Nik Nazmi Nik Ahmad said.

“Utusan shows that the once-proud Malay broadsheet is now a symbol of bad journalism as it acts to further the interests of its political owners, Umno.”

Nik Nazmi called on the daily to apologise immediately to the carmakers concerned, and to all Malaysians.

DAP: Act against Utusan’s lies on lower car prices

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UTUSAN SAYS THAT THE PROMISE OF CAR PRICE REDUCTION HAS BEEN MET BY THIS BN GOVT!

Three days ago, the Umno-owned daily reported that the government is fulfilling its promise to slash car prices by announcing that 10 car models’ price would be reduced.

Utusan reported that among the car makers involved in the price reduction were Peugeot, Volkswagen, Perodua, Honda and Proton.

HOWEVER

a Proton Edar executive said that the reduction in car prices was related to the car maker’s own promotion prices.

However, online media The Malaysian Insider today reported that Volkswagen and Peugeot have also refuted the daily’s report.

“Please be advised, the price on the image is incorrect. The (Volkswagen) Golf price has always been RM157,888 from the time of launch. Not RM169,888 as reported,” a representative from Volkswagen Malaysia was reported saying.

Peugeot Malaysia also clarified Utusan’s report, saying its 308 Vti’s RM102,888 price is not a discounted price but has always been the price tag for the vehicle.

Honda also was reported saying that its Honda Jazz Hybrid had always been priced at RM89,900 since its launch last year.

Proton refutes Utusan report on lower car prices

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Malaysian Insider

Carmakers refute Utusan’s price slash claim

By Zurairi AR
June 13, 2013

People have a look at the Preve when it was first launched in Kuala Lumpur last year. This Proton model was cited by Utusan as one of several makes of cars where prices have been reduced.

KUALA LUMPUR, June 13 — Carmakers Volkswagen and Peugeot have both refuted claims of a price slash this year, as reported in Umno-backed broadsheet Utusan Malaysia three days ago as part of proof that the ruling coalition had fulfilled its election pledges.

Utusan had reported that Volkswagen, Peugeot, Honda and local marques Proton and Perodua had reduced the prices for 10 of their models by up to 11 per cent from January this year, presenting the list as proof that the Barisan Nasional (BN) government has fulfilled its pledge for lower car prices in its Election 2013 manifesto.

“Please be advised, the price on the image is incorrect. The Golf price has always been RM157,888 from the time of launch. Not RM169,888,” a representative from Volkswagen Malaysia commented on its Facebook page, referring to its sports hatchback model Golf.

A user had previously posted an image of Utusan’s report, which claimed that the Golf’s price has been slashed by 7.1 per cent from RM169,888 to RM157,888.

Speaking to The Malaysian Insider, a dealer for the German marque confirmed that the Mark 7 1.4 TSI version of the Golf, which was launched earlier this year has always been priced starting from RM157,888.

Peugeot Malaysia also has responded on its Facebook page to the claim by Utusan that the price of its 308 model has been slashed by 11 per cent from RM115,663 to RM102,888.
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A dealer for Peugeot told The Malaysian Insider that the facelifted 308 VTi has always been priced at RM102,888 since it was launched in the middle of last year, and its 308 Turbo variant is priced at RM121,888.

Utusan also claimed that a Honda Jazz Hybrid now costs RM89,900 after a 2.5 per cent reduction from RM92,187.

A check with the Japanese marque confirmed that the completely knocked-down (CKD) version of the model assembled in its Alor Gajah plant has always been sold at RM89,900 since its launch late last year. The completely built-up (CBU) version released previously costs RM94,800.

Carmakers refute Utusan’s price slash claim

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Free Malaysia Tday

Proton refutes Utusan report on lower car prices

In a letter circulated on Facebook, a Proton Edar executive said that the reduction in car prices was related to the car maker’s own promotion prices.

PETALING JAYA: National car company, Proton Edar Sdn Bhd has denied Malay daily Utusan Malaysia’s report of lower car prices.

In a letter widely circulated on Facebook, Proton’s Head of Network Planning and Development Dvision Salawati Mohd Yusoff said that Utusan did not obtain the car manufacturer’s approval before publishing the report.

“We also did not provide any of the figures mentioned,” said Salawati.

She however said that the reduced car prices published by Utusan Malaysia referred to the “discounts offered by Proton Edar”.
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Salawati, in her letter, advised her sales team to inform customers of the discounts via its 1Malaysia June Sales Campaign Memos.

“And you will notice, based on the discounts that we offer, the percentage is actually bigger than those quoted in the newspaper,” she said.

She urged Proton Edar’s sales team to look at the bright side of the report as it would show that Proton was in favour of the government’s initiative to reduce car prices.

“It’s a perfect opportunity to eradicate the wait and see approach by consumers and get them to buy a new car now,” she said.

Proton refutes Utusan report on lower car prices

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Read the article comparing Proton and Hyundai

Malayysia Chronicle

Tuesday, 28 May 2013 00:58

A Tale of Two Cars – Proton and Hyundai

Written by  Sam Chee Kong, Malaysia Chronicle

Proton or (Perusahaan Otomobil Nasional Berhad) was begun in 1985 by the then prime minister Mahathir Mohamad in the hope that it would help Malaysia hasten its industrialisation program in order achieve a developed nation status by 2020.

Mahathir reckoned that to complement this vision, a ‘national car’ program would be the best option to fast track the process. His penchant for starting up a ‘national car’ program was partly due to the success of other countries, which nurtured ‘national car’ projects that subsequently progressed into successful car manufacturers and giving birth to a chain of related industries including parts suppliers.
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As you know, Proton as a new player will not able to survive the competitive automobile market without any help from the Government. This is fair because in other countries their Government also helped their car manufacturers at their beginning so as to provide an artificial head start. Hence Proton being in an ‘infant industry’ also received Government protection in the form of import tariffs hike for all imported cars. As a result of the price hike, it suddenly made imported cars prohibitive to own and consumers are left with no other choice but Proton.

Through Petronas and tax payers money, the Government poured in RM Billions into Proton not only to keep its car prices low but also to protect those employed by Proton directly and indirectly through its ‘high priced crony linked suppliers’. When business is linked to politics then excesses and imbalances in resources allocation will be created. This will result not only in low quality and uncompetitive pricing in the end product but also lack of drive and self-esteem to innovate within the organization.

Read the whole article
A Tale of Two Cars – Proton and Hyundai

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Malaysiakini

The government will gradually reduce car prices by 20-30 percent in five years, as promised in BN’s general election manifesto, said International Trade and Industry (Miti) Minister Mustapa Mohamed.

“Car prices will not be reduced (at one go),” Mustapa said in his speech at the ministry’s monthly assembly today.

Prices will be reduced in accordance with market forces, he said, with the move expected to enhance the competitiveness and productivity of industry players.

Even though reducing excise duty would also directly reduce car prices, Mustapa noted that the government will not do this as excise duty contributes up to RM7 billion to the coffers.

Gov’t to slash car prices in five years, says minister

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Malaysiakini

MP SPEAKS Under pressure from the Pakatan Rakyat manifesto to reduce car excise duties by 20 percent annually to lower the cost of car ownership, the BN had responded in their manifesto that it would do the same before the election.

Umno president, Najib Abdul Razak announced that, if the BN is returned to power, it would “revamp the National Automotive Policy to gradually reduce car prices by 20-30 percent and increase the competitiveness of the national cars”.

Yesterday, however, International Trade and Industries Minister Mustapa Mohamed – who is in charge of automotive policies – announced that car prices will only be reduced after another five years and not in the near term.

In effect, the BN government is telling Malaysians that they can stop dreaming of cheaper cars for the next five years, and if car prices drop at all, it will be after the 14th general election.

Stop dreaming of cheaper cars under BN

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Read Tony Pua’s full article in Malaysia Chronicle

Malaysia Chronicle

Wednesday, 29 May 2013 07:27

‘JANJI DI CAPATI’ : BN’s first broken promise – no lower car prices after all!

Written by  Tony Pua

Under pressure from the Pakatan Rakyat’s manifesto to reduce car excise duties by 20% annually to lower the cost of car ownership in Malaysia, BN had responded in their manifesto that they’ll do the same before the election. UMNO President, Datuk Seri Najib Abdul Razak announced that if BN is returned to power, it will “revamp the National Automotive Policy to gradually reduce car prices by 20 to 30 per cent and increasing the competitiveness of the national cars.”

However yesterday, the Minister of International Trade and Industries, Dato’ Mustapa Mohamed, in charge of automotive policies formally announced that car prices will only be reduced after another 5 years and not in the near term. In effect, the BN Government is telling Malaysians that they can stop dreaming of cheaper cars over the next 5 years, and if car prices were to drop at all, it’ll be after the 14th General Election.

Click on the link below

‘JANJI DI CAPATI’ : BN’s first broken promise – no lower car prices after all!

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