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Sunday, July 29, 2007

Proton: No approval yet for car scrapping plan

Most Malaysians are talking about this issues. Some regretted that they have sold their old cars to take public transport for just RM500 to RM2K. Some are still very excited to earn the RM5K with their 'Laubeh' car! It's just like kena 4 ekor but here's the "The Star" News.

Proton Holdings Bhd said no Government approval had been given for the proposed scrapping of cars 15 years or older.

Managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said discussions on car scrapping were ongoing with the Government and he did not think this would become a policy.

“It may be that Proton will do the initiative,” he told a media briefing, adding that the funding might be provided by the Government.

“We are now in discussion with the Government on the shape and form of scrapping.”
The controversial car-scrapping policy has been talked about with greater frequency over the past few months as a way to combat slumping sales seen across the industry.

The Malaysian Automotive Association has forecast car sales falling this year by 6% to 460,000 units from 490,768 in 2006.

Various groups have proposed and pitched the idea of a scrapping policy and, in Proton’s case, it is floating the idea of giving a voucher of up to RM5,000 for every car brought in to be scrapped.

The voucher would be used to deduct the on-the-road prices of Proton cars, which would also reduce the financing instalments.

“It is not going to be a policy but there is an urgent need to get cars out of the system,” said Syed Zainal.

“Everybody has to contribute to the voucher, from Proton to the scrap contractor.”

According to Proton, there are 1.5 million cars above the age of 15 years on the roads of Malaysia. That total was based on vehicle registration with the Road Transport Authority.

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