Main challenges, barriers and issues that the industry facing

Being as one of the main player in the automotive industry, Proton faces a lot of challenges from
every corner and aspect of the automotive industry. To face the challenge appear, they must be
very ready and committed in solving and overcoming the problem and challenges. First thing first,
they should detect and discover what is the main challenge that they will face in the industry. Then
will only the solution will come or else, a bad decision to counter the challenge will make it
unsuccessful. These are the challenges that are faced by PROTON Malaysia.

2.1 Human Capital Development
In Proton, they believe that people development is one of the key features that help in growing the
company and drives it towards excellent. Having a talented staff will produce an environment that
will lead to success in future in the car company.
The right talent should have the right skill sets. Here in proton, the staff talent is divided into 5
different criteria which are functional knowledge, values, performance, global knowledge and
business knowledge. These 5 criteria when combined will get a perfect individual talent.
Functional knowledge consists of intellectual, technical and business expertise knowledge that the
individual need to understand more about the company vision and mission. Having functional
knowledge often will results in smoother working environment thus promoting higher production
rate with high quality products produced.
Values are what a must as a human being is. Caring, honest and accountability are the most
important values in this industry. These values will contribute a lot as these values make the
individual more trustworthy than others. Therefore, there will be no issue about workers cheating
while working or not responsible of their job.

Performance is very well needed also. Individual will be needed to consistently deliver
commitment on what they are doing in the field. In other words, giving a 100% effort to contribute
in the production line. High performance staff will lead into high quality products.
Global knowledge is where the cross cultural and global perspective are viewed. Global
knowledge will make the individual understands more about the company planning to give the
best to achieve the world class standards.
Business knowledge is where the workers will continually build understanding of Protons
products, business and industry.
2.1.1 Talent management system at PROTON
Having the right talents at the right places and at the right time may contribute a lot in this talent
system. The system will enable the executives to realize their full potential and talents. It is
tailored to individual role profile and it is divided into 2 programs, which are Career
Accelerators and Functional Breadth.

Under career accelerator, there are executive development program training and also development
programs. Under functional breadth, they are doing multi-business exposure via staff transfers,
secondment and special assignment.
These programs are created to give global experience and corporate exposure to the individuals.
There will be recruitment of expatriates and international employees to assimilate new skills,
knowledge & culture.


2.1.2 People Development: Strategic collaboration to develop skills relevant to auto
Industry

Proton has created a circle to collaborate with universities and government to produce a more
talented person that can give more to the industry. In the university stage, they are contributing in
researching a new technologies and adding the the intellectual capital. Several universities are
involved in this program such as Universiti Putra Malaysia and Universiti Teknologi Malaysia.

At the government stage, government will contribute I government policy, giving R&D grant for
assisting the research, trade protection and regulation.

For the industry itself, they contribute in engagement, application of the research data and
commercialization of what they have achieved.



2.2 Product Innovation and Service Improvements

Producing ever changing car design and technologies is quite a hard challenge for any car
company. Therefore, Proton has taken a drastic action to enhance the R&D capability through
collaboration with Lotus.

Lotus is a car manufacturer located in Hethel, Norwich. As an old company with experiences, they
have done a lot of thing especially involve in racing technologies. Their first racing car is made
back in 1948 by Colin Chapman who eventually found Lotus Engineering in 1952.

In 1996, Proton has acquired Lotus to increase their engineering and R&D capabilities. As for
today, Lotus is divided into 2 divisions which are Lotus cars that build their own car and Lotus
Engineering which provide automotive engineering consultancy for car manufacturers.

2.3 Global Expansion Program

As a car manufacturer, it is normal for them trying to expand their territory to another potential
region to make the company widely known by the world.
For Proton, they are focusing on high growth and regional market such as ASEAN, China, India
and the Middle East North Africa for economies of scale.

Proton has also move to market driven product development strategies too. They adopt a value for
strategy as for which they are producing a better car which better saving for the customer. Cheap
but well-functioning. More and more variant of the existing models is made into super value car.

Proton has also established multiple production hubs. This is to maximize localization to reduce
cost. The more items in the inventory the more the cost will be. Therefore, these hubs are used to
optimize the cost of item inventory.