Geely powers turnaround at Proton

Zhejiang Geely Holding's recent acquisition of Proton has spurred a turnaround at the Malaysian automaker, according to company executives. They said the rejuvenation plans were part of the auto family's pursuit of a greater global presence. "The Malaysian brand will be positioned as a regional brand, targeting the South-East Asian markets with products developed on Geely's platforms," Li Chunrong, newly appointed CEO of Proton Holdings, said in Shah Alam, Malaysia via a video news conference.

Chairman of Proton Holding Syed Faisal Albar bin Syed AR Albar said: "The key to success is product and the other important factors are quality and brand. "We are in a positive and strategic partnership, with technologies being shared between each other. We are confident in Geely to deliver not only existing models, but also new products."

Proton board members also hailed the revitalization of the Malaysian brand. They added the next product will be derived from the Geely Emgrand Boyue SUV model in the local market's mid-size segment, which is equivalent to China's compact segment.

The Malaysia-based carmaker will also launch another four models with the latest technologies in the near future, bringing its offering to a total of five products. Feng Qingfeng, chief technology officer of Geely, said: "Proton's future products will be developed on Geely's latest 3.0 platforms, including the first product to also be based on the 3.0 generation of the Emgrand Boyue." Geely completed the transaction to purchase a majority stake in the British luxury sports brand Lotus on the same day as the Proton deal.

The Chinese motoring group now owns a majority stake of 51 percent in Lotus Advance Technologies, with a minority 49 percent being held by Etika Automotive, a Malaysian group.

Lotus will be Geely's Porsche equivalent, while the Proton brand is similar to Skoda in the Volkswagen family, according to Li Donghui, chairman of Lotus. Li is also a board member of Proton and executive vice-president of Geely.

He said Geely will help Lotus research and develop the next generation of volume products, to "bring the splendid sports gene into full play".

The group's Chinese board members confirmed that Lotus will follow Geely's pursuit of electrification and intelligent technology, but the platform on which future products will be based remains to be settled. Lotus CEO Jean-Marc Gales said earlier that the company will accelerate its R&D efforts in the SUV sector. The company hopes to launch models in the market in 2020, 14 years after the APX Concept SUV debuted at the Geneva Motor Show in 2006. Lotus is shipping three British-made sports car series - the Exige, Evora, and Elise - to the Chinese market.

Geely Holding reported revenue of more than $30 billion for 2016 and produced 778,896 cars that year.

(China Daily 10/09/2017 page18)