Daily News Egypt

China carmaker Geely secures stakes in Proton and Lotus - Daily News Egypt

Advertising Area

Advertising Area

China carmaker Geely secures stakes in Proton and Lotus

China’s Geely Group has stepped up its global expansion drive by buying into Malaysia’s troubled carmaker Proton. It also secured a huge stake in British automaker Lotus as part of the Kuala Lumpur investment.Chinese auto giant Geely on Wednesday announced it had bought a 49.9-percent stake in Malaysia’s carmaker Proton. As part of the deal, the Chinese would also acquire 51 percent of British car manufacturer Lotus from Proton for 51 million pounds ($66.2 million, 59.2 million euros), officials said.

“With Proton and Lotus joining the Geely Group portfolio of brands, we strengthen our global footprint and develop a beachhead in Southeast Asia, Geely Vice President Daniel Li Donghui said in a statement, adding that the target was for Proton to produce 500,000 cars by 2020 for the Southeast Asian markets.

Geely already owns Sweden-based Volvo Car Corporation, which has made a remarkable comeback since it was sold by the Ford Motor Company back in 2010.

Synergy effects

Geely’s investment in Proton is widely believed to be a blessing for the Malaysian firm. With government support, Proton initially dominated the domestic market, but subsequently struggled with making profits as it suffered from a reputation for unimaginative models and shoddy quality.

The Malaysian company produced the nation’s first national car brand, looking back at a history of more than 30 years.

“Wednesday’s agreement lays the foundation for a wider framework for Geely plus Proton and Lotus to explore joint synergies in areas such as R & D, manufacturing and market presence,” Geely commented.

hg/jd (AP, AFP)

Advertising Area

Breaking News

No current breaking news

Receive our daily newsletter