Geely buys in to Proton, and takes a 50.1 Percent stake in British Manufacturer, Lotus
In an apparent about-turn as reported initially, Chinese Automotive group Geely, has bought a 49.9 percent stake in struggling Malaysian automaker Proton. According to a Reuters report, this will be the Chinese manufacturer’s first push into Southeast Asia.
Parent company of Hong Kong-based Geely Automobile Holdings Ltd, Zhejiang Geely Holding Group Co Ltd, will also be acquiring a 51 percent of the Malaysian company’s stake in British sports car manufacturer, Lotus.
While there is a massive buying in by the Chinese manufacturer, according to Malaysia’s Second Finance Minister, Johari Abdul Ghani, Proton would always be a national car company, and will maintain it’s 50.1 percent stake.
Geely’s presence could spell a turning point for Proton, as we may see expertise, technologies and platform sharing from Volvo, which Geely also owns.
In April last year, Proton received a government injection of aid, in the form of 1.5 billion ringgit, with a condition that the Malaysian automaker find a foreign partner. According to Reuters, there was previously interest sounded out by France’s Renault and Peugeot, and also from Suzuki Motor Corp.
The buying into Proton is seen as a tactical move by Geely to secure a South-east Asian manufacturing facility, and also one which produces cars for markets that utilise right-hand drive vehicles.
Would this mean for both Geely and Proton, a range of better engineered cars? In Proton’s case, badge engineered Geelys?
Only time will tell, but we do anticipate a fair mix of Swedish engineering, together with Lotus-tuned handling, and attainable right-hand drive cars coming our way.
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