yesterday's Star highlighted that with 10,000 units booked, there was a 3 month wait, and Proton would step up productionstep up production?
Of course Lulu's alarmed!
Don't they know how to quit while they're ahead? Either they are selling cars at "normal prices" with such a huge margin that with a RM8496 discount, they are still making money, or they are building cars and giving away money with it.
Have you heard Kenny Roger's The Gambler?
You got to know when to hold 'em, know when to fold 'em
Know when to walk away, know when to run
You never count your money when you're sittin' at the table
There'll be time enough for countin', when the dealin's done
Now, every gambler knows, the secret to survivin'
Is knowing what to throw away, knowing what to keep
'Cause every hand's a winner and every hand's a loser
And the best you can hope for is to die in your sleep
You need to know when to walk away.
unless of course, they're not playing to win.
1. Capture market share, like those beer companies which throw prices during CNY for the sake of this number game.
2. Making sure their p&l looks so bad, no foreign company will want to buy them, and the government would have to force a local company to take a stake
3. Because of the fixed cost plus the labour workforce, it is better to keep the factories running, even though it is producing at a loss.
4. To produce more cars so that there'll be more cars on the roads making tolled roads a more viable option and increasing income for DBKL when the congestion charge comes in.