DRB-Hicom, Geely excited to work on returning Proton to the top
DRB-Hicom Bhd’s immediate focus is to reclaim Proton’s position as Malaysia’s best-selling car.
This follows the inking of the definitive agreement with Zhejiang Geely Holding Group Co Ltd here yesterday.
Group managing director Datuk Seri Syed Faisal Albar said Proton would focus on increasing its domestic market share.
“Proton’s status as a national car is secure, with DRB-Hicom still a majority shareholder. We look forward to starting this new journey, but more importantly, we are excited to work with Zhejiang Geely.
“With the joint capabilities of both companies, we can impact the market positively by coming up with products that meet market preferences in terms of design and quality.”
Syed Faisal said with Zhejiang Geely on board, Proton could eye the huge Asean passenger car market with renewed confidence.
Zhejiang Geely, which also owns Sweden’s Volvo and the London Taxi Company, was the right partner for Proton, he said.
“Zhejiang Geely will provide the much-needed impetus for Proton to hold its head high again. Their success with Volvo, the London Taxi Company and their own Geely marque shows their capability both as a bona-fide carmaker and as a partner.
“This (partnership) would not have been possible without the support of the government. It is incumbent upon us (Proton) to make Malaysia proud again,” he said at the signing ceremony.
Syed Faisal said the agreement with Zhejiang Geely comprised seven strategic areas of collaboration, including Proton having access to Geely’s products and technologies, as well as access to markets beyond Southeast Asia and China.
Zhejiang Geely chairman Li Shufu expressed hope that the cooperation would yield success.
“Proton is an iconic national brand of Malaysia. It is the symbol of Malaysia’s national achievement and industrial spirit.
“We hope that through our cooperation with DRB-Hicom, Proton will be transformed into the No. 1 independent automobile brand in Malaysia and one of the top three in Southeast Asia.
“For Lotus, we will increase new product launches and capacity to fully release its brand appeal.
“Proton and Lotus will create synergies for Geely to position ourselves as a major player in the Asean market, which will enhance our global position and help us achieve sales target of three million units by 2020.”
Li said the revival of Proton and Lotus would not be an easy task in a market facing fierce competition, hence they needed to be fully prepared for the long and challenging road ahead.
“Our priority is crystal clear. We will return both companies to profitability, and pave the way for sustainable growth, while embracing the new technological trends of electrification, lightweight and artificial intelligence application.”
Zhejiang Geely first garnered attention in the global automotive industry in 2010, when it acquired Volvo. The deal raised many eyebrows, especially in Europe. Last year, Volvo recorded an operating profit of US$1.25 billion (RM5.37 billion), the highest since its formation in 1927.
For the London Taxi Company, Zhejiang Geely has committed US$370 million towards producing an electric version of the vehicle to comply with new environmental requirements in London.
In China, the Geely marque sold 760,000 cars last year, doubling that from the year before. The growth rides on the popularity of the SUV segment, with Geely’s Boyue SUV proving to be very popular in China.
Geely sold 109,000 units of Boyue last year. As at May this year, 103,000 units have been sold. Page 1 pic: Prime Minister Datuk Seri Najib Razak witnessing the exchange of documents between DRB-Hicom Bhd group managing director Datuk Seri Syed Faisal Albar (second from left) and Zhejiang Geely Holding Group Co Ltd president An Conghui in Kuala Lumpur yesterday. With them are DRB-Hicom Bhd chairman Brigadier General (K) Tan Sri Dr Mohd Khamil Jamil (third from left), Chinese Ambassador to Malaysia Dr Huang Huikang (left), International Trade and Industry Minister II Datuk Seri Ong Ka Chuan (right) and Zhejiang Geely Holding Group chairman Li Shufu.