Proton Cars has announced a revitalised assault on the Australian car market - including rebuilding its dealer network.

In early 2010 the company also plan to launch Australia’s “cheapest car” - although it is yet to announce what that cheapest price will be.

The company has severed ties with almost half its existing dealers and is now recruiting new high calibre dealers to broaden the reach and service levels for Proton customers.

Managing director of Proton Cars Australia, John Startari, admits that the marque has not performed to expectations, however the resources and backing have now been committed by parent company Proton Cars Berhad to drive the brand forward in Australia.

“The centre piece of our plan is to recruit the best dealer network available. We are not going to expand at all cost, it will be a matter of only signing dealers who are committed and eager to be a part of growing the brand,” says Startari.

Startari told AUtofile most of the dealers were terminated by mutual agreement, although some fell into administration due to other difficulties, “The majority were via mutual agreement with five entering into administration as a result of the economic downturn.”

A total of fifteen dealers have been dropped, but Startari plans to have those replaced quickly, with additional reinforcements, “Our plan is to have 25 new appointments by March 2010.”

Startari told AUtofile he believes the previous dealers were given sufficient support by the company: “We have always run the business on the basis of a partnership with our dealers. Our support structure is more than fair with Proton taking on the majority of the risk.”

Startari says they are looking for experienced dealers, “with a proven track record over an extended period.”
The company is targeting growth to 4700 units in 2010. Much of the future expansion centres on its new entry-level model.

“It will be significantly different to the current Savvy - it is the same car that was launched in Malaysia recently as the Saga - it is a sedan and is powered by a 1.6 litre Campro engine in place of the 1.2 litre engine in the current Savvy,” says Statari.

The company will not announce the pricing or the name of the new car until the launch. However, Startari says its price, equipment levels and overall value for money will make it a contender in the small/light car class.

Startari says that Proton is here to stay and has a solid base on which it can build its future expansion.

“Proton Cars has an established infrastructure in Australia which we have refined and tuned over the past ten years. We have low overheads and a small but highly skilled workforce - factors that will help drive the brand forward,” he says.

“We have already recruited a number of new dealers and they have told us that many have considered taking on other low cost brands but did not want to take the risk with brands that do not have an established record in Australia,” he adds.

“There is a car park of around 25,000 Protons on Australian roads, the marque has been established here for 14 years and it’s now time to take the brand to a higher level,” Startari concludes.

Source: Audofile.com.au