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Message: <blockquote data-quote="minivan" data-source="post: 2265344" data-attributes="member: 3299">Proton was doomed from day 1. It was a noble enuf ambition (At that time ler!!). But Proton failed because of economies of scale, or the lack of it that is. What people haven't seen is Tun's vision for the national car was also related to his vision of wanting 60 million Malaysian citizen. Because, for the local car market to thrive, it needed strong domestic sales (even in Proton's hay days, it wasn't enuf!). With strong domestic sales, you could 1) Generate more money and put it into R&D (needed in today's cut throat market) and 2) u could start benefiting from economies of scale, which would first mean bigger margin (for R&D and expansion), then later, cheaper cars!!!For those who don't know how economies of scales works:Its a numbers game. Just imagine Proton in its hay days sold some what 200,000 - 300, 000 cars a year. Toyota sold some 300,000 Corollas worldwide alone within the same period. This is how it works.... Toyota orders a couple million steering wheels, proton orders 200,000.... who's gonna get the bigger discount?? Multiply that with the thousands of components a car has... Who gets to enjoy the bigger margins and is able to put much much much much more into R&D??</blockquote>

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