‘Partnership will yield quality parts at low prices’
KUALA LUMPUR: The partnership between China’s Zhejiang Geely Holding Group Co Ltd and Proton Holdings Bhd will see benefits in terms of economies of scale, including better quality components at a lower price.
Automotive expert Yamin Vong, in describing Proton’s acquisition by a foreign strategic partner as “overdue”, said Geely was an appropriate partner due to its good track record.
“After being successfully taken over and having its Volvo Cars revived, the Swedish carmaker had its best financial and sales performance last year.
“Geely brings a complete range of cars from the A to D segments, and sports utility vehicles (SUVs) to the Proton badge,” he told the New Straits Times yesterday.
Yamin, who is also motorme.my editor, said through Geely’s ownership of Volvo, it also held ownership of petrol-electric hybrid cars and electrification technology.
He added that Volvo was also one of the leaders of autonomous driving technology.
Geely produces automobiles under five key brands via three subsidiary companies, including Geely Auto Group (Geely Auto and LYNK & CO), Volvo Cars Group (Volvo Car and Polestar), as well as Geely Commercial Vehicles Company.
It acquired Volvo Cars from the Ford Motor Company in August 2010.
With a US$1.8 billion (RM7.68 billion) price tag, the deal marked the largest foreign purchase by a Chinese car manufacturer.
“We can expect Proton cars to benefit from the economies of scale, including better quality components at a lower price,” said Yamin.
Asked whether the partnership would affect Proton car prices, he said: “Pricing of cars is always a matter of company policy and market competition.”