Proton upbeat on turnaround with Geely’s expertise
Carmaker can break even in 3 years and be profitable in 5, says Syed Faisal
(From left) Proton Holdings Bhd board member Shaharul Farez Hassan, Perusahaan Otomobil Nasional Sdn Bhd (PONSB) deputy chief executive officer Datuk Radzaif Mohamed, Proton chairman Datuk Seri Syed Faisal Albar, Geely Holdings executive vice-president and chief financial officer Daniel Donghui Li and PONSB chief executive officer Dr Li Chunrong at a briefing by DRB-HICOM and Geely in Shah Alam yesterday.
DRB-HICOM Bhd is upbeat on subsidiary Proton Holdings Bhd’s turnaround plan with the help of Zhejiang Geely Holding Group as it unveiled the national carmaker’s new board structures and executive team.
DRB-HICOM group managing director Datuk Seri Syed Faisal Albar said Geely’s vehicle manufacturing expertise would help Proton return to its heydays.
He said Proton was expected to break even in three years before making profit after five years of partnership with Geely.
“We have gone this far to find strategic partner and it has been on the cards for a long time,” he said at a briefing, here, yesterday.
Syed Faisal said the automotive historical landscape had changed since 2001, posing greater test for Proton to regain its leadership position.
Proton would come out with “interesting products” for the Malaysian and Asean markets, he said.
“Many automotive companies have gone through this (partnership) cycle, which in turn would help in lowering overall cost and collectively result in better profitability.”
Geely board member, executive vice-president and chief financial officer Daniel Donghui Li said the partnership would allow Geely to provide all the necessary support to Proton, especially in product development.
“We realised that the key to a company’s success is product, product and product. Good products are important for any company to satisfy its customers in the market,” he added.
Donghui said Geely would help Proton to boost its automotive business in Asean, leveraging on its global resources in research and development area.
“Within the first 10 weeks, we will have detailed plans, including modifications, product planning, quality improvement, procurement and customers satisfaction,” he said.
Syed Faisal said it would take between two and three years to introduce a new model as it involved huge investment from the initial stage of product design.
Meanwhile, newly-appointed Perusahaan Otomobil Nasional Sdn Bhd chief executive officer Dr Li Chunrong said Geely had large new product offerings for Proton.
“But, we have to improve the customers’ satisfaction level and get more potential good dealers,” he added.
Li said Proton’s main objective was to improve its sales and reduce losses with the introduction of good products.