‘Part­ner­ship will yield qual­ity parts at low prices’

New Straits Times - - News / Story of the day -

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.”

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.