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New Model VIVA Will Enhance PROTON's Losses



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May 11 2007
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Perodua (Perusahaan Otomobil Kedua Berhad) or in English, Second Automobile Manufacturer Limited Corporation, is launching its’ new model today. Perodua is Malaysia’s second automobile manufacturer after Proton Holdings Bhd (KLSE: PROTON, stock-code 5304). In actual fact Perodua does not actually produce any in house design and engineering for the main components such as the engine or the transmission. So could it be called the manufacturer? Maybe it’s more appropriate to call it assembler because it depends on Toyota Motor Corporation (TYO: 7203) engines, transmission and other main components.

Whatever it is, the fact is Perodua is making good profits while Proton is ailing and dying from cancer but since it’s the national pride I guess it’ll still survive for some time. With the launching of the new VIVA model, Proton might be watching in pain as the losses could be widen.

The photos are from star-motoring. From this angle, I would think MYVI model could easily scores a higher point. I’m not sure but I think the front light should have a more fierce or classy design instead of the pale-look. But since the design is from Toyota, it has the characteristic of the Toyota car (one of the reason why I always like Honda instead). But since this is the replacement of Kelisa, I guess it’s acceptable.
From the following angle (photo below), it looks like a scale-down of MYVI. Remember how Avanza looks like when it was launched? Surprisingly it was reported that this VIVA is actually longer than MYVI by 10mm. Why do all these car designers couldn’t think of a better way to innovate the rear’s lights? It seems all the models have the same design with the lamps – straight up to the roof, and this applies to the new Honda CRV.

The interior (photo below) looks, well, simple and looks very “Kancil”ed. The gear-knob and hand-break still looks century-old and the air-cond blower looks quite static. The rest of the buttons hopefully can stand and lasts.
This is perhaps the most attractive piece of photo. Looks very roomy with all those traveller’s bags stuffed inside the boot but in actual fact, those are the smallest bags in it’s class to project the image that several bags can be squeezed in. But then again, this is the entry-level car ranging from 660 cc and 850 cc (both comes only in 5-speed manual) to 1,000 cc (automatic)

Don’t you feel sick with all these new models being launched but to enjoy the safety of it you have to opt the premium model, which means the most expensive range? Yes, if you want to keep your life longer, then you have to pay RM 44,200 to enjoy the basic features such as ABS (anti-braking system), dual SRS airbags and reverse sensor. Guess Malaysian drivers’ lifes are the cheapest amongst the countries in the globe.
The engine looks “ordinary”, nothing to shout as one look will tell you it’s not the sort of engine that will give you the latest technology in fuel-saving, But then, which engine models manufactured or assembled by either Proton or Perodua are of latest technology or design? The engines have three cylinders and 12 valves and are enhanced with Dynamic Variable Valve Timing, Double Overhead Cam and Electronic Fuel Injection.
Again, the speedometer and the rest of the indicators looks the same old fashion. Maybe this is the best Perodua can produce in order to maximize profit. This model could be the perfect model for ladies who have problem parking without going back home with scratches all over the car’s body. But be prepare for new batch of teenagers (male or female) who’ll graduate with F1 (Formula-1) license sooner rather than later. Give way to the new VIVA.

As the conclusion, I think I’ll still prefer MYVI if given both Myvi and Viva as the only choices to make. From investing point of view, this new model will give investors more justification to avoid Proton stocks as it can be expected to register more losses in the coming quarters.



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