WIN-WIN SOLUTION- DRB-HICOM as well as Proton can kill two birds with the single stone sportscars for the rakyat at affordable prices
WE know that Lotus feeds upon parent Proton's money as enthusiastically as the single munches upon popcorn in astonishment of "The Dark Knight Rises" or Emma Stone's web-slinging superhero boyfriend. It has harm Proton for more than the decade.
And you have additionally known for the long time that automobile prices in Malaysia have been among the world's highest. It's an curiosity that has deprived the normal Malaysians from enjoying the fun as well as thrill (and comfort as well as reliability) behind the steering circle of code brand new Honda, Toyota, Volkswagen, Peugeot or alternative foreign cars.
What would you do, if you have been the brand new owners of Lotus, to try stop the British sportscar maker from stability to spew red ink?
Sell the association or hang to the costly turnaround devise designed by the prior owner/management? Or come up with the brand new plans and, in the process, outlay an additional RM1 billion or so for the loss-making outfit?
On the alternative hand, if you have been the authority, how would you conflict when the young as well as (over?) zealous statesman from the opposition have an improbable electoral oath to slash the hefty excise as well as import duties upon cars?
The populist may be tempted to announce the cuts desired by most so that the statesman (who was charged underneath BAFIA not long ago for leaking tip banking documents) does not get further limelight as well as the open can buy vehicles affordably.
Then again, bri! nging ta xes down is peanut as well as any supervision can do usually that. But be prepared for the repercussions to the industry's ecosystem.
Revenue losses for the supervision as well as stakeholders such as dealers, vendors as well as banks have been clear outcomes. It additionally leads to the grim probability of increased congestion upon the roads.
It is loyal that the cut in the automobile excise as well as import duties, that right away run to up to 105 per cent upon top of the 10 per cent sales tax, can put more money in to people's pocket as well as relieve domicile debt, as well as in conclusion kindle the economy. But immediate, undisguised dismissal of the taxes is not the great move.
Like many, this bard advocates lower automobile prices (and was undone with the new RM3,000 cost enlarge for Hyundai Elantra 1.8).
I additionally determine that any tax examination contingency put the seductiveness of the wider open first, above that of companies or banks. However, cutting taxes drastically is not in the wider seductiveness of the open as it will affect automobile resale worth (although the single can disagree it's usually the short-term pain), not forgetful the implications mentioned earlier.
About five years ago, there was the tiny rebate in automobile taxes. It shrank the sales of both brand new as well as used cars as well as took the marketplace two years to correct itself.
Both the automotive companies as well as consumers were losers then. Many owners inevitably had to come up with additional cash to compensate off loans in order to sell their aged cars for brand new ones. So the tax discuss continues.
Now back to Lotus.
Sceptics contend Proton as well as Lotus have been not done for each other. They disagree that if large players such a! s Genera l Motors (which paid for Saab) as well as Ford (Volvo, Jaguar) had to dispose of the units after stability pumping billions of dollar in to them, what goal does the partia! lly tiny association like Proton have to revive Lotus?
It's not unfit to turn around Lotus, nonetheless formed upon the past, present as well as destiny financial needs, the easy way out for Proton as well as land association DRB-HICOM Bhd would be to sell it outright.
DRB-HICOM has chosen to embankment prior Lotus management's five-year five-model plan. Instead, it will helper the outfit back to health with the own medicines.
It's early days and, hence, you should give DRB-HICOM the possibility as well as maybe revisit the issue after two or 3 years.
Who knows, by then, maybe DRB-HICOM as well as Proton have built or at slightest remodelled an affordable Lotus cars for the rakyat.
--Business Times
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