Geely a business decision to face competition
Published on: Saturday, May 27, 2017
Kuala Lumpur: The announcement on the appointment of Zhejiang Geely Holding Group Co. Ltd (Geely) as Proton Holdings Bhd's foreign strategic partner (FSP) is a business decision in line with the national carmaker's commitment to its transformation towards global competitiveness, said the Malaysia Automotive Institute (MAI).MAI Chief Executive Officer Datuk Madani Sahari said Proton's modern infrastructure and full-fledged research and development (R&D) capabilities would create a positive synergy with Geely's experience in penetrating international markets.This will not only open more opportunities for Proton as a business entity but also the potential for developing talents among Proton's current employees.
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"In order for Proton, its vendors and workforce to progress, it cannot afford to remain in a slow-paced recovery mode for a prolonged period of time."Geely's experience in selling high volumes of vehicles would hasten R&D turnover, which in turn accelerates technology penetration and Malaysian human expertise," he told Bernama.Conglomerate DRB-Hicom Bhd, the owner of Proton, has reached an agreement for Geely to acquire a 49.9 per cent equity in Proton. As part of the deal, the Chinese car group also acquired a 51 per cent stake in British automaker, Lotus, which Proton owned since 1996.Subject to regulatory and shareholder approvals, DRB-Hicom and Geely are expected to sign the definitive agreement in July 2017, where the value and more details of the deal are expected to be disclosed.
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Madani said the parameters of the partnership, which saw Proton keeping its majority shareholding, was a clear demonstration of the national carmaker's continued efforts in allowing the domestic automotive industry to keep growing."MAI believes that Geely will also play its part to ensure that a fruitful relationship will be established, and bring immense benefits to both parties," he said.
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