He said while the government could intervene in the beginning, vendors would have to “stand on their own feet” in the long run, adding that “business is market-driven”.
“The international trade and industry ministry and the Malaysia Automotive Institute are in regular communication with various stakeholders, and the government will continue to monitor and do what we can.
“It is, however, incumbent on the dealers and vendors to also make improvements,” he said in a report by The Malaysian Reserve (TMR).
Mustapa’s remarks followed a separate report by TMR yesterday which said dealers were struggling to comply with the directive to upgrade their premises into a one-stop dealership cum service centre.
According to the report, smaller dealers, some of whom have been partners for 20 years or more, say the new Proton requirements are too much for them and have asked for some flexibility.
“To be a three-in-one (stop centre) is really beyond the reach of any of us, especially for those who are operating in Johor, the central region and Penang, where the rental and prices of land are very high,” an unnamed dealer was quoted as saying.
The move towards one-stop centres is part of the dealership overhaul introduced by Proton’s new CEO, Li Chunrong.
Li was appointed CEO after Zhejiang Geely Holding Group Co Ltd bought a 49.9% stake in Proton from DRB-Hicom Bhd last year. The latter retains a 50.1% stake.
Only four dealers have signed Proton’s new Dealers Network Upgrade agreement so far, according to a statement by the company last month.