Poor demand forces EON to shut 16% of its branches

Source: http://business-times.asiaone.com/sub/news/story/0,4574,204974,00.html?

Published August 12, 2006

Poor demand forces EON to shut 16% of its branches

(KUALA LUMPUR) Edaran Otomobil Nasional Bhd (EON), the biggest dealer of Proton Holdings Bhd vehicles, said yesterday that poor demand has forced it to close 16 per cent of its sales and service branches.

Edaran said it planned to close 10 sales branches and four service branches from Sept 1.

After that date, EON said it would still have 42 sales and 33 service branches, enough to meet the needs of Proton customers.

‘The move is a result of the weaker sentiment for the passenger car market that has seen a downtrend in recent months,’ Edaran told the stock exchange.

Last month, the Malaysian Automotive Association, a trade body, forecast a 6 per cent drop in new car sales in 2006, reversing an earlier forecast of growth, blaming weak used-car prices and rising interest rates for the first fall in eight years.

Proton, dogged by a host of problems such as concerns over build quality, slow model rollout and its failure to find a foreign partner to help technology development, has seen its share of the Malaysian passenger car market fall to 33 per cent from 38 per cent a year ago, the association said. - Reuters

Leaving our country with bad reputation and alot of those ppl jobless in the streets…

Hell, let’s be more positive minded for a while. This is the beginning of the end for the bad reputation. Besides, Toyota sales are up so much, they might just be hiring.

…Proton, dogged by a host of problems such as concerns over poor build quality, slow model rollout and its failure to find a foreign partner to help technology development…

There, I fixed the article better.

Lol! I wonder if the branch in Miri would be affected. :smiley:

Lol! I wonder if the branch in Miri would be affected. :D[/quote]

Miri branch should be fine; every month sure ppl buy can in miri.

Jack, u not in miri ? Did u notice miri is getting more and more car and the traffic is getting worst.

[quote=“Ra”]
Miri branch should be fine; every month sure ppl buy can in miri.
Jack, u not in miri ? Did u notice miri is getting more and more car and the traffic is getting worst.[/quote]

A lot of Mirians do not realise that by buying cars at super low / nill downpayment and super high interest over a period of 9 years, they are slowly killing themselves. Also, the cars aren’t supposed to be at that kind of price either. What’s the status of the cars, especially Protons and Perodua by 9 years? Main question is whther it will still be running on the roads safely…

Ever notice if you look at houses in Miri, it has to have at least 2-3 cars? I think the resources could be better allocated elsewhere - not to mention that the people who buy the zero downpayment cars are the very people who are not able to afford cars in the first place, and in the near future when fuel prices go to RM5 per liter, a lot of people are really going to get hit hard.

OK, it’s an exaggerated amount - but with commander cuckoo in charge my point remains valid.