Why not merge Proton and Perodua?

THE premise for the national car project was quite simple: an affordable car for the public manufactured by a Malaysian company. When Perodua came into the picture, both companies had their roles clearly defined: Perodua would manufacture cars below 1,000cc and Proton would stick to cars 1,000cc and above.

The first flaw in the National Automotive Policy was to allow Perodua to build a car above 1,000c. The arrival of the MyVi saw an immediate battle between the two national car companies when Proton came out with its own small car in this segment, the Savvy. At the end of the day, both companies are cannibalising each other’s market share, with the odds heavily stacked against Proton in this segment.