2003: Starting with Foreign Trade

Chapter 865 New Year's Baoteng

Nearly a year after taking over Proton, this Southeast Asian car brand, which once caused a sensation in China, has once again disappeared from the sight of domestic media.

This aligns with Weilai's consistent approach: maintaining a low profile during periods of focused internal development allows the company to grow quietly.

About a 40-minute drive southwest from Kuala Lumpur, a dynamic building with flowing curves comes into view – this is the new headquarters of Proton.

"It's very impressive. I always thought that the efficiency in Southeast Asia was relatively low, but now it seems that it's no less efficient than that in China."

Li Chunrong, who accompanied Tan Jincheng on the inspection, smiled and said, "Malaysia's key projects are all done by our domestic engineering teams, so of course the efficiency is fast."

What were the most popular words internationally between 2015 and 2018?
The Belt and Road Initiative is certainly one of them. As a national brand of Malaysia, although Proton has not been doing well in recent years, the Malaysian government still attaches great importance to Proton. When it comes to cooperation with Proton, it provides resources and policies.

The cooperation between Weilai and Proton is also one of the key projects in the Belt and Road Initiative. In addition to the two companies, the governments of both countries also attach great importance to this project.

Upon entering the hall, a maroon sedan lay quietly in the center of the display stand.

"This is Proton's first model launched in 1985 - the Saga, which is also our latest facelift model. It adopts the latest design language and is more modern in design. The car next to it is the prototype launched in 1985, which looks a bit dated."

The person responsible for explaining to Tan Jincheng was Kairunizal, a research and development engineer at Proton. He has worked at Proton for more than 30 years and spoke with great pride about the company's history.

Tan Jincheng first walked to the prototype car that looked a bit like a Santana and also had a red body.

Both the paint and the interior have a strong sense of the times.

Opening the car door, Tan Jincheng went inside and took a look: "It's very well maintained, it looks like a new car. Who would have thought this car is as old as me?"

"Oh, that's true. Proton's first model was born in the same year as the boss, and it also took off like a rocket. That's our destiny."

Foreigners can be just as good at flattering as people in China.

Li Chunrong added with a laugh: "That's right. When this car was launched, it sparked a buying frenzy with its affordable price and reliable performance. Back then, you could see it everywhere on the streets."

The first car launched was a bestseller, which was quite rare in Southeast Asia in the last century. A national brand has its own confidence.

"The newly redesigned Saga is Proton's flagship model this year. We plan to revitalize the brand, which is the first step in Proton's revival."

Wei Lai's management has brought many benefits to Proton. First, the intelligent connected system customized for the new Saga by domestic suppliers has enabled intelligent interaction between people and vehicles.

Hi, Proton

"Boss, look, this kind of simple human-computer intelligent interaction is a very common thing in China, but it's a relatively new thing here. We will apply this technology to the new Sega."

Nizar nodded repeatedly: "By easily waking up the voice assistant for navigation, entertainment and other operations, the driving experience has been greatly enhanced. We have great confidence in the new model."

"Driving experience is important, but the most important thing is quality. Everyone must keep this in mind."

"That's for sure. We've been working hard to improve our internal capabilities over the past year, and we've made a lot of reforms in order to improve quality. In doing so, we've given up a lot of production capacity."

Since taking over a year ago, Proton's sales have plummeted. This is not a result of market forces, but rather a decision made internally by Proton.

In terms of methods, it's still the same old routine: first, shut down those businesses that are not good enough or have a bad reputation, then retrain the workers and upgrade the production lines. This process may not take too long in China because there is a mature industrial chain.

However, in Malaysia, the timeline is much longer, and the new management team, led by Lee Chun Rong, is prepared for a long-term process.

"Yes, we are very grateful to our head office for this. Now everyone at Proton is very confident in turning a profit in 2019."

Nizar has worked at Proton for over 30 years, witnessing the company's rise and fall. He has the deepest understanding of the changes Proton has undergone this year, and he also greatly admires the young founder of the parent company.

Acquiring a company is easy; at worst, you just throw money at it. If you don't plan to operate it after buying it, you can break it up, sell it in various parts, and then go public through an IPO to make money.

However, acquiring a company and intending to run it seriously is not as simple as just throwing money at it.

For a local company like Proton, with its deep cultural heritage, being run by a foreign company, coupled with the predicament of a lagging local industrial chain, the level of difficulty is unimaginable. Yet this young man was able to firmly implement the revitalization plan.

"Through our youth talent development program, we have already solved most of the company's talent needs. Let me introduce the person next to me to the boss."

Tan Jincheng interrupted Nizar, smiling as he extended his hand and said, "I know you. Your name is Aimer, right?"

24-year-old Aimer seemed a little flustered and hurriedly extended her hand, saying, "Hello, Mr. Tan, I didn't expect you to remember me."

The first thing Lee Chun Rong did upon taking office was to implement the "Youth Talent Development Program," which involved sending young people from Malaysia to the country for training. This program aimed to improve their technical skills and provide them with exposure to Malaysian corporate culture.

Aimer was one of the first beneficiaries of the youth training program. When he was sent to China for training, Tan Jincheng received the entire team.

He never expected that after so long, the company's big boss would still remember him.

"I remember you. How are you doing now?"

The group welcomed Tan Jincheng, chatting as they walked. After touring the new headquarters building, they would head to the Malin factory and some local Malaysian parts suppliers.

When recognized by his boss, Aimer was a little excited: "I'm doing very well now. The company has given me many opportunities to rotate through different positions. I have already completed rotations in four core departments, including sales and R&D, and have accumulated a wealth of experience."

"In addition, we continue to provide more than 40 hours of professional training every year to help us continuously improve our business."

"Talent is the key to the development of an enterprise, and this plan must be implemented well."

The current plan is to recruit over 100 outstanding graduates from Malaysia each year, and through job rotation and selection, send them to Malaysia for training to cultivate talent for Proton and achieve talent localization.

As the world's largest automobile consumer market, although domestic consumers have a lot of criticism of domestic brands, our complete automobile industry chain is something that any country would envy.

Southeast Asia's automotive industry chain started early, but its development has been very slow. Technologically, it lags behind us by at least ten years. For young people working in the automotive industry, our market is what they aspire to.

For young people in their twenties who have just graduated, going abroad is something to look forward to, especially to a country that is currently more advanced than their own. Since the launch of the youth program, Proton has become very attractive to Malaysian graduates seeking employment.

"Speaking of which, these young people have a very good opinion of the parent company after they came back. Word spread quickly, and now the parent company has a very good reputation in Malaysia, especially within Proton. Many people in the company admire the parent company."

"Is it related to those cutting-edge technologies in our company?"

"Yes, it is indeed closely related to our cutting-edge technology. In addition, they are very envious of our office environment, benefits, and even food."

Among traditional car companies, Weilai is the youngest and may not be as strong or technologically advanced as other car companies. However, thanks to Tan Jincheng, it has some advantages over traditional car companies in terms of both design and technology.

For example, voice-activated smart assistants were taken to a whole new level by Wei Lai, and they would be considered "cutting-edge technology" even today.

And then there are things like headlights. Weilai's headlight designs are now so sophisticated that they can rival those of lighting factories. Weilai has taken these little tricks to a whole new level.

The success of WILAI's products, especially among young people, is largely due to its so-called "cutting-edge technology." In terms of playability, WILAI's vehicles, whether traditional gasoline or electric, are ahead of most competitors.

The Malaysian graduates sent to Malaysia have limited experience; they've never seen anything like this before, so it's nothing new to them.

At the Marin factory, the stamping and assembly welding workshops are bustling with activity.

Looking around, Tan Jincheng sighed, "It's completely different from the scene when we came a year ago."

"That's right, boss. Take a close look at the workers' spirit and morale now. There's been a big change compared to a year ago."

Currently, China is in the midst of the Two Sessions, and according to the boss's usual schedule, he usually spends this time in Beijing. Li Chunrong doesn't understand why the boss would come to Malaysia for inspection at this time this year.

But since the boss is here, I should at least show him my work.

Workers in uniform are focused on their work. Proton has many years of experience in car manufacturing, so they have no shortage of experience. What they lack is advanced technology and management concepts, which they certainly don't lack.

Combining the two presents both challenges and opportunities.

Tan Jincheng and his group attracted attention as they entered the workshop, but the workers at their workstations remained largely unchanged. After a quick glance, they continued to focus on their work, prompting Tan Jincheng to nod in approval.

Indeed, when it comes to PUA tactics, you have to look to domestic companies. Li Chunrong, who came from Dongfeng, really has some skills.

At this moment, Yakob, the stamping workshop engineer, was walking towards Tan Jincheng and his group. He had received a notice from headquarters that the big boss of the parent company would be coming to inspect the factory soon. He was aware of this from both headquarters and factory.

"Boss, Li, welcome."

Hello, Hisham.

Like Nizar, Hishamyakob also worked at Proton for many years. That's how it is in small markets; employee turnover isn't as frequent as in China. Many employees have worked at Proton for more than ten years.

Li Chunrong greeted Yakob casually, showing that the two were already quite familiar with each other. At this moment, Pu Yunyang, the Chinese deputy director of the stamping plant, also rushed over: "Boss, it's been a long time! We were all very happy to hear that you were here to inspect."

"Long time no see, thank you for your hard work."

There are quite a few Chinese staff members like Pu Yunyang. They didn't have time to go back to China for the Spring Festival this year. Besides his own reasons, Tan Jincheng's visit was also to express his regards to the Chinese staff members.

"Haha, it's not hard work, it's great here, the best thing is that I don't have to drink alcohol."

Pu Yunyang laughed heartily. The arrival of the big boss made them, the Chinese personnel, the happiest, as the big boss was always very generous.

One of the things the boss included on this trip was visiting and offering his regards to the Chinese personnel dispatched to the company. Those who know, know.

Li Chunrong nodded in agreement: "That's true. There's not as much socializing here as there is in China, and the work is quite simple."

Because of religious beliefs, there is no need to drink alcohol at formal occasions here. For example, Proton's dealer conference and supplier conference are over as soon as they are held. There is much less socializing, which makes the work simpler.

"This is indeed much better than in China, where many social engagements are unnecessary, especially drinking. By the way, how long until Yang Liang comes back?"

Yang Liang is Proton's new manufacturing director, and Proton employs Chinese staff in the core management positions.

"He's already on his way back and will definitely be back today. Speaking of which, he's the one who's worked the hardest this past year."

The suppliers were of low quality, so Yang Liang visited one supplier every month, using a project manager approach to ensure that the supplier could provide qualified products through detailed training and process improvements.

Since taking office, Manufacturing Director Yang Liang has been either on a business trip or on his way to one.

"Just make sure you get there before dinner. I'll cook you a meal myself as a treat."

"Really? We'll have to look forward to it."

Li Chunrong was well aware of these little tricks for winning over subordinates. However, there were indeed rumors among the company's senior management that the boss was an excellent cook, and those who had visited the boss's home praised his cooking skills highly.

This isn't just empty praise; I've heard from colleagues that the boss knows quite a few dishes.

"Haha, that's great! I've heard the owner is a good cook. I'll definitely have a good meal tonight. Everything here is great, but I'm not used to the food."

There are many Chinese people in Malaysia, and many Chinese restaurants, but compared to those in China, they are far inferior.

"It was my oversight. When I get back this time, I'll transfer a few chefs from the company and set up a small kitchen for you. But you still need to respect their beliefs."

"Understood, we are very careful on important occasions."

Not only that, but on important occasions, Li Chunrong always wears traditional Malay clothing and interacts warmly with his employees. You can probably understand this by looking at Yakob's attitude towards him.

Respecting local culture is also a way of adapting to local customs.

After catching up, Yakobu Puyunyang then introduced Tan Jincheng to the various production processes in the workshop and how to distinguish defective products. The standards for defective products are entirely based on domestic production standards.

"Hehe, this is probably where you two had the biggest disagreement from the very beginning, right?"

A small dent on a stamped part is considered a defect in Weilai's standards. It is regarded as a defective product and needs to be repaired or even scrapped to ensure that such a defect does not pass on to the welding stage.

According to Tan Jincheng's understanding, this clause was not included in Proton's previous quality standards.

Jacob shrugged and said helplessly, "Yes, we had a lot of disagreements at first, but everyone knows that it was all for the better development of the company, so we gradually overcame them."

Initially, due to quality standards issues, the production line experienced a large-scale shutdown. In addition, there were problems with handling orders from suppliers, which caused great trouble for the Malaysian side.

The employees were initially filled with anxiety, with many even thinking the company would go bankrupt and worrying about their jobs.

"The period of change is always painful. Only by improving quality and increasing production efficiency can we develop better. We have passed the most difficult stage, and things will only get better and better from now on."

"Yes, in less than a year since Wei came to take over, production efficiency has increased significantly, product quality has improved remarkably, and the entire factory has taken on a brand new look."

"So, our goal of 100,000 isn't far off, is it?"

For any car company, 100,000 units in sales is the first hurdle. If Proton wants to revive, its first goal must be to reach 100,000 units in sales. You have to take things one step at a time. Let's get past 100,000 units in annual sales first.

Throughout the inspection, Tan Jincheng remained enthusiastic until the very end.

"Haha, Proton's changes are somewhat similar to how our Weilai was when it was first established."

Wei Lai initially followed the acquisition route, but both Yangzi Automobile and Changfeng Xiangcheng's production bases were a complete mess in terms of production standards and quality. Despite being state-owned enterprises, they were nothing short of a makeshift operation, otherwise they wouldn't have been on the verge of bankruptcy.

Many employees of old state-owned enterprises in China still hold onto the mindset of the last century, and changing them is by no means easy.

"That's right. It wasn't just the employees who were transformed; the suppliers were too. Domestic suppliers didn't lack orders, and since we weren't well-known, we were incredibly arrogant back then."

Yang Liang, who has already returned, is an old man. Back in China, he worked as a supplier. Even with Lifan's poor quality, they could still sell tens of thousands of vehicles every year, generating billions in output value. This shows how terrifying the market was during its boom period.

Parts suppliers have no shortage of orders. Some parts suppliers without long-term standards simply do shoddy work with OEMs because it's so easy to make money.

The Malaysian market is relatively small, and given Proton's position in Malaysia, it's much easier for Yang Liang to manage suppliers than it is in China.

No one wants to lose the new Proton, which has a strong background and substantial financial support. Take Malaysian auto parts company PHN for example. In order to secure orders from the new Proton and expand its market reach, they have introduced technical support from their domestic supplier, Top, and the two parties have reached a strategic cooperation agreement.

In addition to different tax systems, each ASEAN country also has different requirements for the localization of auto parts. For example, Malaysia only requires that the localization rate of auto parts in a vehicle reach 16%.

In the recently released "Made in China 2025" initiative, the requirement is 40%, and for some models and parts, it is 25%. Anything below these two figures is considered an imported car, regardless of where it is produced.

That's the power of a strong market: if you want to make money here, you have to use our workers and parts.

Tesla's rapid development after establishing a factory in China in 2018 is also due to our strong industrial chain, with the highest localization rate of their components reaching 95%.

"Although the requirements in Malaysia are lower, we still need to work hard, Mr. Yang, to cultivate more local suppliers for cost reasons. In this way, not only Proton, but also Southeast Asia can become another supply chain system for us in the future."

Reviving Proton is a long-term plan. In the process of revival, in addition to Proton itself benefiting, the biggest beneficiary is Weilai, because a brand is enough to support an entire industry chain.

If Proton's expansion proceeds smoothly, Weilai will be able to establish its own automotive supply chain in Southeast Asia, based in Malaysia, which will be extremely beneficial to Weilai's globalization strategy.

Incidentally, it can also avoid some trouble caused by the Americans in the future.

In Baoteng's small canteen, everyone was chatting and laughing, and busy with their own tasks. Tan Jincheng was calling it a way to make up for the lost Spring Festival for everyone. Right now, some were chopping vegetables, some were mixing fillings, and some were rolling out dumpling wrappers.

"It's been a while since I made this, so I'm a bit rusty, but the taste is still pretty good. Old Li, you should try it."

The braised beef brisket, which had been stewing for over an hour, emitted a fragrant aroma. Tan Jincheng took a bite and was quite satisfied.

Boss Tan really did take charge of cooking. In addition to pork, he made several hearty dishes, including fish, shrimp, meat, and dumplings made by some of his colleagues from the north. It really had a festive atmosphere for the Chinese New Year.

After the dumplings were cooked, everyone sat around the long table and enjoyed a fairly sumptuous dinner in a foreign land.

"Come on, let's raise a glass to celebrate. Thank you all for your hard work this year. Proton's success today is thanks to your efforts. On behalf of Wei Lai and Proton, I would like to toast you all."

There were more than a dozen management and technical personnel on site, not only Chinese employees, but also several Malaysians. Among them was Aimer, the young man whose name Tan Jincheng remembered during the day.

The cups contained beverages, and there was no pork on the table. The dinner prepared by the big boss strictly adhered to local customs, which pleased the Malaysian employees. Although not everyone in Malaysia abstains from alcohol, drinking is indeed discouraged.

"Cheers, welcome to the boss!"

Malays are generally reserved, but Nizar, the most senior member, is quite different. He is very knowledgeable about the drinking culture of the country, and it's possible that he has Chinese ancestors.

"Haha, try my cooking, try some authentic Chinese food. I plan to bring over a few Chinese chefs when I go back. If you like it, please remember to support me."

The dinner was very enjoyable, and the meal progressed quickly without alcohol. As expected, the Malaysian employees left right after finishing their meal, which was quite different from back home.

Tan Jincheng gave each of them a red envelope, chatted with the Chinese staff for a while, and then sent them away, leaving Li Chunrong behind.

"It's a bit unusual for the boss to come to Malaysia at this time."

As expected of an old state-owned enterprise, their sense of smell is truly exceptional.

(End of this chapter)