The Malaysian Reserve (TMR) quoted a vendor as saying that many did not respond because they were not supplied the detailed requirements of the car.

The unnamed supplier was quoted as saying that with Malaysian suppliers “unable or unwilling” to respond to Proton’s call for quotations, there was even a possibility that the next Proton might not be built here.

The report, however, did not say if TMR had tried to contact Proton for comment.

The TMR report said vendors met last week with International Trade and Industry Minister Mustapa Mohamed to discuss issues they had with Proton’s Chinese-led management, especially new measures it is taking to improve its bottom line.

According to some of those who attended the meeting, the main grouse was over claims that suppliers enjoyed a 30% profit margin.

Proton Holdings Bhd’s chief executive officer Dr Li Chunrong had told parts suppliers to cut prices by 30% by year-end.

Second Minister of International Trade and Industry Ong Ka Chuan was recently quoted as saying by Nanyang Siang Pau that Proton was buying automotive parts at 30% premium from market price, and that these costs would ultimately be borne by consumers.

Local parts suppliers deny they are making 30% profit. One reason for this was that their costings were based on order volumes that usually fell short, they told TMR.

One supplier said that vendors would be required to maintain capacity to supply parts for 10,000 cars per month, but would only receive orders for about 3,000, which meant they had to bear the cost for underused capacity.

At the meeting, the local vendors asked for more help from Proton under its new shareholder Zhejiang Geely Holding Group Co Ltd, including working capital and delayed payments due to them, according to the report.

They also asked to be allowed to form joint-ventures with Geely’s China vendors to supply the Malaysian carmaker.