For a start, Proton has told 280 dealers and service centres to upgrade their premises into a one-stop dealership cum service centre, The Malaysian Reserve (TMR) reported.
Some of Proton’s partners which only sell cars will now have to merge with partners that only offer services.
This is one of the many changes that Proton’s new CEO, Li Chunrong, has introduced for dealerships and service centres. They are aimed at strengthening the brand and improving buyer experience.
Li was appointed CEO after Zhejiang Geely Holding Group Co Ltd bought a 49.9% stake in Proton from DRB-Hicom Bhd last year. The latter retains a 50.1% stake.
According to TMR, the changes which Li is implementing will mean that some of Proton’s oldest dealerships may not make the cut.
Only four dealers have signed Proton’s new Dealers Network Upgrade agreement so far, according to a statement by the company last month.
The four dealers were part of a group of 28 top dealers which Proton took to visit Geely outlets in China last year.
TMR quoted one of these four dealers, Setia Gemilang Auto Sdn Bhd director Andrew Quek, as saying: “We will have a luxurious showroom which can accommodate 11 display cars, 14 service hoists, 10 body-and-paint bays, 30 customer parking lots as well as a new lounge area.” His outlet is expected to be completed in June this year.
However, TMR reported that smaller dealers, some of whom have been partners for 20 years or more, say the new Proton requirements are too much for them and have asked for some flexibility.
It quoted an unnamed dealer as saying: “It is understood that to qualify ourselves as a true dealer for any brand, the requirement of a sales, services and spare parts (3S) outlet, ideally, should be fulfilled.
“However, to be a three-in-one (stop centre) is really beyond the reach of any of us, especially for those who are operating in Johor, the central region and Penang, where the rental and prices of land are very high.”
The dealer went on to tell TMR that Proton should show some flexibility, including by allowing them to have the three services within the same general location if not under one roof.
In order to build a new standalone 3S outlet, which requires an area of about 18,000 sq m, the dealer told TMR he would have to spend up to RM3 million, excluding land price.
Another dealer said they had been asked to upgrade in the past on promises of better products and sales, but these promises had not materialised.
“Now, they want us to spend money in anticipation of another new model, the Boyue,” TMR quoted him as saying.
According to the report, Proton’s sales dropped to 70,991 last year, compared with 72,291 units sold in 2016.