2009 Annual Report - ChartNexus

Operations Review
80
These measures were not only necessary to reduce cost and improve efficiency but also in
preparation for the production of the Exora in Shah Alam. As a result, the excess manpower
from Tanjung Malim was transferred to the Medium Volume Factory (MVF) in Shah Alam
and no new recruitments were necessary. However, in order to handle the production of
the Exora, which was launched in April 2009, the Waja production line at the MVF had to
be discontinued in July 2008.
Notwithstanding these challenges, PROTON achieved a production volume of 157,643 units,
representing an increase of 16% over the previous financial year. This comprised 87,053
units at the main plant, 3,932 units at the MVF and 66,658 units from the Tanjung Malim
plant. Delivery increased to 157,211 units, of which 139,824 units were for the domestic
market. This marked an increase of 23,094 units compared to the previous financial year.
PROTON’s channel stock position also increased to 17,925 units from 13,262 units. This is
likely to remain until new cosmetic changes are implemented to create fresh excitement in
the market. Production plans are also being continuously adapted to suit market conditions
and to reduce further the stock channel.
The production volume is forecasted to increase by 4,789 units to 162,000 units in the next
financial year. This is premised mainly on the strong demand for the newly launched Exora
and the plan for more PROTON models to be upgraded.