Looks like it’s down to one. According to the South China Morning Post, Chinese automaker Zhejiang Geely has withdrawn from its bid to acquire a controlling stake in Proton. Geely president An Conghui told the publication earlier today that it had pulled out of negotiations with the national automaker to become its foreign strategic partner (FSP).
The report said that An did not elaborate on the reasons for the decision, but earlier this month, the Chinese carmaker’s chairman Li Shufu had indicated that Geely – which was considered by many to be the favourite to seal the deal – was planning to pull its bid due to DRB-Hicom’s indecision regarding the partnership.
The announcement of Geely’s withdrawal from the chase means that Groupe PSA remains as the leading – and thus far, the only known – contender to become Proton’s partner. The French company confirmed it submitted a bid for a partnership with Proton, announcing last month it was in talks with the Malaysian carmaker for a deal.
Securing a partnership with Proton would allow the French automaker access to Proton’s underutilised facilities as a production and export base, expanding the company’s presence in the South East Asian region.
A Proton-Geely deal would have offered the Chinese carmaker the same, as well as the ability to break into right-hand-drive (RHD) markets, tapping that route via Proton. Sources had indicated that Geely promised DRB-Hicom some of the latest vehicle technologies it has developed with Volvo’s input as part of the deal.
Earlier today, it was announced that there would be the possibility that Proton might follow Perodua’s path by allowing its FSP to have a 51% equity stake in the company.
Yes. This is good news.
How is Proton going to marry PSA? PSA is debt ridden and in a mess.
If Proton marry PSA, it will be like one problematic company marrying another problematic company.
How to solve Proton’s problems like this?
At least Geely was cash rich. Geely gave USD$12 bil (RM55 billion) to Volvo to revive the brand.
If Proton did not aksi and lansi with Proton, Proton also would have got tens of RM billions.
Volvo got RM55 billion woh! RM55 billion!!!!
PSA is debt ridden, like our politicians and country aren’t debt ridden? PSA is the 2nd largest car manufacturer in Europe now. Having bought Opel, they are also shifting Australian car manufacturing to Germany. What are you on about? I wish i could have what you’re having.
RM55 billion is nothing to the eyes of multinational conglomerate. Sorry to break your bubble, there’s nothing to woh here and there.
Padan muka Proton and their supporters, syok sendiri and jual mahal now nobody wants to buy it
Betul… Should have listen to the rakyat and close down.
Proton is dead, long live Geely
Proton typical style:
1. Sendiri Cakap
2. Sendiri Syok
3. Sentiasa Rosak
4. Sales Carnival
5. Geely pun tak nak
Proton is no volvo. Volvo have everything except the money. They have great vision, know how and capable people. On contrast proton have nothing except manufacturing capacity. Putting money into proton will solve nothing as it has been done by the G since forever. Lots of parasites need to be tackle first. Geely eventually know this and pull the plug it did.
Wrong, PSA posted a benefit of 6 billion euros for 2016. From almost bankrupt in 2014 they became one of the most profitable company. I want them to do the same thing for Proton!
This might not be a good news if PSA is willing to keep the overbloated 60,000 employees. If GEELY pull out because of that, how come PSA didn’t follow, in turn they stayed on. Does this mean they will keep the 60k underutilized resources? Seriously?
Because PSA is ready to offer another Tiara technology to proton. And proton share holders (gov) won’t/can’t refuse in order to save face!
Proton is just like local artists here always kahwin, cerai, kahwin, cerai.
Asal bukan khalwat
Knowing that Geely is out, PSA probably will squeeze the negotiation even further. Might even proposed 70% stake.
I know, I know. Proton should do a Nokia and stop selling cars and should use their manufacturing plants to produce auto parts for all the other established and successful auto brands in malaysia. Or produce furniture for ikea. Or manufacture packaging for FMCG brands like Coca Cola or Nestle. Or sell canned sardines. Problem solved.
Learn to be humble and have humility. You are near bankruptcy and yet, you want to demand so much and ask your white horse partner to kowtow to your terms.
Look at Volvo, they were nearly bust, but Geely pumped in USD$12 bil into Volvo. Now Volvo is doing so well. Demand for their cars are so high.
Learn to be humble and have humility
Proton is like a bad husband. New sexy wife come along, Proton forget the old faithful wife.
Just few months ago, Proton gave 1 carat diamond ring to Suzuki and asked them for marriage. Proton also made big noise to whole of Malaysia about their marriage with Suzuki.
Then Geely came along (Geely is like a new sexy wife). Proton quickly forgot Suzuki just in a blink of an eye!
Completely forgot Suzuki! Sudah kasi cerai. Then go after Geely but play hard to get. Geely the sexy wife got fed up with old man Proton and say Bye Bye.
Now Proton looking at French kissing PSA. But don’t worry, new girl come along, Proton, like lalang, will forget the French Kissing PSA.
I agree with your opinion in Principal.. except that Geely is the potential Chinese hubby with lots of cash and proton is the “janda” here. PSA on the other hand is the potential French hubby with lots of debt..
Don’t forgot P1 got ex-wife … Mitsubishi, Renault…
I agree with Michael Goh’s opinion.
proton nak makan lebih letteww
Peugeot please pull out also. Be smart like our local graduates.
Hahahaha nice one! Local graduan don’t want to get stuck with Poton
Local graduates like our Persona. We can sell more than Vios and City
Oops.
Padan muka kau proton. Bunch of morons lost a good potential partner. I bet you will lose PSA as well and then go close shop.
What do u expect? U ingat aku ni spare tyre ko ke ape? Sila meninggal.
Uh… is this the start of the Chinese money STOP coming into Malaysia? Then troubles come from Petronas to Forest City in Johor…
Proton Boleh!
Boleh Syok Sendiri
Of course Geely will pull out. they told Proton and Msian Gomen that they don’t run a charity and cannot keep all 60,000 staff as Proton only produces 72,000 sales. they said it is impossible to keep this kind of ratio where 1 staff to 1 car made for 1 whole year.
Proton told Geely to podah. just like how they told VW to podah.
Now we are stuck with debt ridden PSA, who themselves are in financial trauma and near bankruptcy.
since when p1 has 60k worker? p1 actually has 12k worker
U have exact number?
No need to feed 48k cronies’ mouths?
minister himself last month quoted 60,000. You saying Minister wrong?
U work in Proton?
Apparently Proton is wasting of time for everyone. From VW, GM, Suzuki, Renault, PSA and now Geely.
The China people really really smart!
Bwahahaha…proton only good at chasing away potential suitors.
Proton is in a deep doo doo now….
It seems that Proton and China never got along since day one. Proton’s history with China is as old as Proton itself. Here’s a history recap ;
When the 1985 Saga launched, the government of China was so impressed, they said they would place 200,000 orders (during this time, China’s auto industry was non-existent). That didn’t happen. Although, Proton did ship a few Sagas to China.
When China opened up their market sometime in the late 1990s, Proton founded a joint-venture with Chinese company GoldStar (Fujian). The GoldStar company would obtain the manufacturing license from the China gov. to build a car factory, and Proton would provide the cars and technology. All seemed well.
Some years passed, but GoldStar didn’t keep their promise. No license meant no factory. No factory meant no chance to sell Proton cars in China (without heavy taxes and quotas).
GoldStar wasted Proton’s time, and while other foreign companies were starting to make headway into the China car market, Proton was forced to sit and watch. Proton was losing out on the rich, delicious pie that was the China market.
Eventually, Proton got fed up and decided to partner with Youngman (Zhejiang). And what did GoldStar do ? GoldStar sued Proton for breach of contract. The whole matter was cleared up in front of an international court in Singapore. The court ruled that Proton was not guilty, as they had given GoldStar enough time to procure the license. GoldStar was naturally disappointed, but the matter was closed.
By this time (around 2010), Proton’s partnership with Youngman was going very well. Proton was shipping CamPro engines and CKD packs for the GEN2 and CM Persona to Youngman’s factories in China. More GEN2s were sold in China than in Malaysia.
Youngman also enlisted the help of Lotus Engineering in the R&D matters. Lotus Eng. developed a new sedan and hatchback model based on an extended Proton GEN2 platform. This too sold well. Then Lotus Eng. created the Youngman Lotus SUV… many will remember this SUV, because it was hinted that Proton would eventually rebadge this Lotus-Youngman SUV for sale in Malaysia too. Finally, Proton will have its own SUV.
But once again, it was not to be. Youngman for some reason decided to abandon their joint-venture with Lotus and Proton. Some say it was because Youngman was bankrupt, and couldn’t pay the royalties to Lotus and Proton. Others say it was fraud, and Youngman falsified their financial info. Yet others say it was because Lotus Engineering and Youngman got into a IP theft scandal, and Lotus was so angry that they refused to work with Youngman afterwards.
Unfortunately, we don’t know the real truth of the matter, because since 2015, Youngman has pretty much ‘disappeared’ from the public. Their factories are left as it is, their unsold stock are rusting outside in the sun and snow. When some Chinese media tried to contact Youngman, they got no response.
And what did Proton do next ? Proton decided they had no other choice but to return to GoldStar (yes, that company which tried to sue them). It might sound ironic, but remarkably, Proton, Lotus and GoldStar managed to establish a second joint-venture. Lotus plans to build their own SUV at GoldStar’s China factory.
And then Geely (Zhejiang) came along last year. Geely seems like a good, responsible company (relative to other China car companies anyway). They seem to have ‘saved’ Volvo, and they seem to have a passionate, entrepreneurial CEO. So naturally, many Malaysians (especially local Chinese) were hoping Geely would be the one for Proton. But now it seems that won’t be the case.
So you see, Proton and China do not get along at all. I don’t know why, but that’s just how it’s been for 30+ years.
But this is not the end. Barring any unforeseen circumstances, Proton will most likely carry on with PSA Group. In fact, Mr. Carlos Tavares commented that “it is almost a done deal”.
Time will tell.
You know a lot mr aero. Actually after that thing with Youngman didn’t go well, Proton did try to explore with Hawtai but not sure what happened later.
All the best to Proton.
Whao I never knew this thing man. Good write up. *applause
Good history lesson. Do one for the French please
Tiara, waja 1.8, savvy. That says it all eh?
Good luck, future proton owners.
Good analysis with facts, unlike many comments here that are just cock talk.
Refer to the news by FMT about Industrial Court case by former expats Lotus Engineering Malaysia S/B staffs. It was revealed that:
“…this case was an outright closure of business operations of the company due to its uncollected debts.
“All six claimants agreed that the company’s main customer was Youngman, of China. A witness for the company testified that it could not collect the monies owing to it by Youngman,” she said. ..it was impossible for the company to continue its business.”
According to the judge, perhaps the company suffered losses as a result of bad management decisions but this did not disentitle it from retrenching its employees.”
good one.. I rather see P1 manufacture vehicle using their planned new engines with Opel / Vauxhall chassis for ASEAN market (at least)..
PSA is a better fit for proton. PSA french flair + Opel german reliability + proton budget manufacturing = potential winner.
Heard that geely actually more interested in lotus only, not much for proton. Maybe that’s the cause why geely make all the fuss “merajuk” tarik diri. Well, the truth not many people know the real thing happen behind all this. Most people bashing here actually know nothing, just talk kok.
This is what the way car forum in malaysia should comment…god POV.
If indeed the outcome of this episode, PSA becoming the strategic partner to Proton, and PSA will have full access to Proton’s Manufacturing Plants and the workforce and the local supplier base, the most important question remains -how can this partnership propel both parties to new greater heights especially in this region? The end-products need to hit the right balance in terms of quality , design & cost. Because they are facing the mighty Japanese OEMs which are already so well established in this region. PSA (and Proton) must closely work together to banish once and for all the quality stigma of their cars in this region.
Sell off DRB Hicom as well, hopeless entity!
Just look at all the car brands under DRB. Chevrolet franchise was revoked, given to Naza. Suzuki franchise gave back, because sales too slow. Audi is slowing down. And VAG is wanting to step in, take over. Mitsubishi is slowing down. Parent company in Japan now controlled by French Renault. Mahindra – you don’t say. Honda sales is good but only after the Japanese ppl stepped in. Look at who are the top guys in Honda – not DRB guys anymore. Now, proton. Sigh
Have to agree with this.DRB sucks big time
DRB is rubbish since day one. DRB was supposed to save proton but failed.
The funny thing is Proton made such huge losses last year, they pulled down entire DRB group’s account from net profit to net loss.
All I have to say is too bad for Proton. Too bad for the Peugeot brand too. Not that it is doing very well with loads of problem models at hand.
Save them a prolonged headache
“On dirait que Proton est foutu.”
Ladies and gentlemen, looks like we are hopefully getting Proton 3008, or some of them quirky DS models.
Although I’m really against Proton due to its lack of pride in developing their newer cars, (just take a look at the new Persona, like who in the right mind approved that design?) I have to say that my family’s first new car was a Proton Wira, and we loved it, everything about it was awful, but the seats became softer with more use and the aircond was so cold.
Whatever happens Proton, I wish you all the best.
But please la, stop taking tax payer’s money.
At least Ford did something with their line up with the government bailout….
You gave us the Persona.. Really, Proton? Really?
Now that the President & Chairman has announce the decision, P1 will be the sole FSP. The billion dollar question is will PSA break the deal ?? Yes for like. NO for dislike.
what a real shame actually….
Proton banyak membawa malu kepada rakyat dan negara
Aiyah! What a waste of opportunity. Pity.
Pity those Proton supporters who always syok sendiri but don’t dare to comment in this article
Like that Proton sure die die lor… How many Peugeot have we found on Msia road?? Even the Peugeot 406 trying to under cut Toyota Corolla Altis and Honda Civic, can’t hardly see them today.
And now that Perodua is equipped with Toyota engine (eg Bezza with Toyota 1NR-FE 1.3litre engine), how is Proton going to compete??
Die lor Proton like that…
Proton has an assembly plant in tg malim. They built that 15 yrs ago at a cost of 1.8 billion. Now maybe it is worth 3 billion. If Peugeot buys 51% in thst facility, then proton will get approx 1.6 billion. Use some to pay back govt loan, some to pay vendors and some to maintain it’s operation.
2. Peugeot has access to ASEAN region then. It may build 100k of cars (Peugeot, Opel, Vauxhall) for 10 ASEAN countries in the first year. Enjoy afta import tax exemption. Naza can sell more Peugeot at cheaper costs.
3. Peugeot may want to share some of its models for proton and vice versa, don’t forget engines and transmission too.
Peugeot is not stupid. They have money, they have brains and proper planning.
… but they don’t have experience dealing with ppl like our gov. Bfr 1997, the western world thought M’sia is just another ‘democratic’ country with open economy but suddenly when fin crisis happened, our gov hold currency control that only save themselves (of course they said it’s for citizen) and you can’t bring >5k out of M’sia. Just like a casino that don’t let you out with your bet, how’d you feel?
Geely will next said, i am back…they know P1 is desperate, so 51% for sure demanded..
51% at half price.. Lelong! Lelong! Lelong!
:D :D :D
Wise choice, or else they will ‘divorce’ later due to Proton uncompromised politically.
Haiya, Geely sure want P1 to follow everything they want down to the dot in the i’s and cross in the t’s. Then ppl exposed as Jibby’s govt selling out to China. Maybe they don’t want to be a party to that, setting up shop then becomes a hated name rather than the saviour. Let them go lah
I knew it!! Lulz
Either deal was not great or Jual mahal sangat?
Aiyo banyak malu la ni Proton, only one left good luck
Hahahaha padan muka. China car also don’t want Proton!
Itu la jual mahal sangat, in the end.. no partner. Proton main sorang sorang.
Now desperados want to offer 51%. PSA just bought over Opel/Vauxhall from GM. They’re going to focus on strengthening their position in European market and I am not sure if they are in the position now to buy ownership of Proton.
Close down la Proton. Convert your assets to manufacture something else.
Geely make a very wise decision. No need to suffer the consequences of bad decisions. No need to be accuse by irresponsible persons later on.
PSA cars are not popular in Malaysia. Suzuki is a better choice if they are willing to invest.
with PSA, proton’s reliability will equal peugeots..ohh dear
Geely felt a bit geli with the proton set up
Geely probably only wants Lotus, but DRB-Hicom didn’t want to split Proton and Lotus so they cut off the deal. PSA on the other hand, interested with Proton and also it’s facilities. A few weeks ago PSA bought Vauxhall and Opel, two companies which in fact, quite popular for producing hot hatches.
Hopefully PSA would build a few foreign car such as the Corsa(Iriz size), Astra(Preve size), Insignia(Perdana size) and Zafira(a bit bigger than Exora). An OPC or VXR performance package also can get a lot of attention of they priced it right.
If the deal is on, and PSA build cars using domestic material, would it mean that their cars would be priced the same as Proton? Since Proton is using the so called ‘Malaysian only’ material and parts that allow the company to produce ‘cheap’ cars, is it?
maybe next week PSA might announce they want to withdraw too?
bad news but its a smart move for geely. i wont be surprised if psa pulls out too now that they have opel.
Perodua should come and save Proton now.
And why wouldnt they? The bid is only valid for so long, given how fast business moves. By 2H that bid would not be worth the paper it was printed on. Obviously that would rather work with a faster decision making partner.
G: I am interested to invest in Proton, but we must have the majority stake and run Proton like a proper business.
P: No, you can’t.
G: Why?
P: We got many mouth to feed, you cannot trim our staff and suppliers.
G: It doesn’t make sense.
P: BMW make 5k USD per car, Porche $17k USD, we are just making RM500 per car.
G: RM500? I put my billions in FD better. At least I am guaranteed 4% a year than dumping into a blackhole.
P: Oh ya btw, we need you to give us everything you know about Volvo to us. Pump in billions every year without questions, hopefully one day in 2050 we can breakeven.
G: WTF??!!
Last kopek peoguet also pull out so proton single again tak mau khawin pasal happy go lucky mau duit cari kat puterajaya. Kalau proton bangkrap Malaysia malu
Yeah,PSA gonna win.I like PSA more cause their cars shows a lot in Geneva Motorshow compare too Geely car.Yes,Volvo appeared too,but geely?Just no.
Geely is just lucky China has a huge population of more than 1 billion ppl. To sell 800k cars a year is nothing.
Proton got all the protection it can ask, still lose to Perodua and Honda.
Bodoh logic.
You all ni mula x2 kutuk government selling asset to china la…… geely will sack all malaysian employee & bring in china people to work in factory shop like forest city la…macam x2 lagi. Bila geely pull out kutuk PSA french car not reliable la…macam lagi. Every thing is not right in your eyes. All DRB wants is market access & technology transfer for proton. Who can offer the best not just money. Car model & platform that suits proton. Geely can offer volvo tech but are the swedish people willing to share??
U think if the master(Geely) ask his driver(Volvo) to turn left, he dare to disobey ??!
What Volvo technology has that Peugeot and Opel don’t?
The one that got away.
Hiring and promoting the current CEO of Lotus, Jean Marc Gales would be the wisest choice, thus eliminating the current deadwoods and injecting new fresh blood and dynamics to the company. Besides being the former CEO of PSA, his reputation, credibility and experience in the automotive world will bring Proton to greater heights. If MAS can hire an expatriate, why not Proton. Proton needs a visionary leader that has ‘real’ background in automotive sector even though he is not Malaysian (a fine example is by looking at how Carlos Ghosn who runs the Renault Nissan Mitsubishi Alliance). We don’t want another random Dato’ from DRB to further do damage to Proton, don’t we?
Congrats Geeley for making a sound business judgement. You have decided wisely. Now you can invest in Thailand or Indonesia without any major worries. Good luck on your future venture.
In line with typical government practice, Proton is doing flip flops on the negotiation table with Geely. Serves them right. Beggars can’t be choosers.
Close down lah… Lousy brand
Typical of this country. So much potential, all wasted for the sake of a few individuals and their cronies getting rich and establishing dynasties. Very soon people will stop knocking at the door. Can’t wait.