GEELY GEARED UP TO TURN AROUND PROTON
Partnership will enable local carmaker to become industry leader in Malaysia and top-three brand in Southeast Asia
ZHEJIANG Geely Holding Group Co Ltd promises a turnaround and profitability for Proton Holdings Bhd “as quickly as possible” by scaling up the national carmaker to become an Asean player.
Geely chairman Li Shufu said the partnership with DRBHICOM Bhd would enable Proton to become an industry leader in Malaysia and the top three brand in Southeast Asia.
“We will help Proton to turn into profitability as quickly as possible. Proton will be a key player in the Asean market, if not at the international level. This will help us reach our sales target of three million units by 2020.”
DRB-HICOM group managing director Datuk Seri Syed Faisal Albar said Proton would have access to Geely’s products as well as its automotive market.
Proton’s Tanjung Malim plant would be the manufacturing hub for Geely’s right hand-drive vehicles in the Asean region, he added.
“Proton can now target the immense Asean passenger car market for both our existing models and Geely’s models.
“Proton’s status as Malaysia’s national car is secure and DRBHICOM remains a majority shareholder. Proton will focus its efforts with Geely on gaining the domestic market share,” said Syed Faisal at a signing ceremony of a definitive agreement between DRBHICOM and Geely yesterday.
As a start, Geely will inject RM170.3 million cash and transfer its sports utility vehicle platform, Boyue, worth RM290 million, to Proton. A total of RM460.3 million represents the 49.9 per cent Proton stake acquired from DRBHICOM Bhd.
Other than cash injections and the provision of future models into Proton, Syed Faisal said Geely would take leadership and lend expertise, platform and technology in Proton’s production and operation activities.