Proton has signed a heads of agreement with Geely as a step towards the assembly and sale of Proton cars in China. Both parties will enter into an equal-share joint venture for this purpose, which will be announced in due course.
The agreement entails new models which will be developed with Geely from this point onward, and will focus on electrification technology. Geely already has said technology in its portfolio and has several models on sale thus equipped, including the Geely Borui GE plug-in hybrid (PHEV) and mild hybrid models (MHEV) for the Chinese market. The PHEV combo is similar to Volvo’s T5 Twin Engine powertrain.
Also specified in the agreement is Geely’s role in providing the vehicle platform, and engineering aspects such as engines and drivetrain for the models involved; while Proton will bear the task of exterior and overall design for the new models involved.
It is understood that these upcoming models will be sold in the China market with Proton branding, while Proton’s existing platforms are also under consideration for the development of further China market models, should the platforms be deemed suitable.
This latest development was announced at a function at Geely’s headquarters in Hangzhou, which was attended by Malaysian prime minister Tun Dr Mahathir Mohamad, Zhejiang Geely Holding Group chairman Li Shufu, minister of international trade and industry Darell Leiking, minister of primary industries Teresa Kok and Perak chief minister Ahmad Faizal Azumu.
This move also demonstrates Geely’s commitment to explore further cooperation with Proton to further strengthen the latter’s position and widen its reach for the export market. Previously, Proton had made an attempt to enter China via joint ventures with Youngman and Goldstar, though it was an effort which failed to bear fruit.
“Clearly with Geely on board, Proton’s route into China has become more tenable. Part of Geely’s role is to secure the manufacturing licenses and regulatory approvals required for such a venture under China’s regulations. Geely will also identify a suitable location where the manufacturing facility is to be based,” said DRB-Hicom MD Datuk Seri Syed Faisal Albar.
Proton’s current vendors who are competitive and meet the required standards will be considered as suppliers for the upcoming joint venture, Syed Faisal added. This is in line with the Malaysian government’s desire to open up opportunities for local vendors to be a part of China’s greater supply chain.
“In line with the prime minister’s deep expectations, we have decided to deepen our strategic cooperation between our two sides in the field of new energy, increase our investment in architectures, product platforms, as well as core component investment in Malaysia, which will help both nations occupy the commanding heights of future development in the automotive industry, said Geely chairman Li Shufu.
Speaking at the press conference after the signing ceremony, Tun M said that he hopes the collaboration will enhance the engineering capabilities and knowledge of Proton. “I have to admit, there have been much improved quality and technology shown by Geely through its new models,” said the PM, who last visited Geely’s Hangzhou HQ four years ago.
It would be a considerable achievement for Proton to penetrate the Chinese market even with a small percentage of market share to begin with, as the company aims to increase production and expand its export markets. It will be a vast field to harvest from; the passenger car market in China has been growing at a considerable rate over the last 10 years, and it’s now the world’s biggest auto market.
For scale, 6.76 million passenger vehicles were sold in China in 2008, a figure which has grown to 24 million vehicles in 2017. Geely has taken its place at the sharp end of the Chinese market – which has approximately 300 automakers – by becoming the first privately-owned Chinese brand (as opposed to government linked) in China to reach the one million vehicles sales mark last year.
More precisely, Geely sold 1.24 million vehicles in 2017 for a market share of 5.06%. The company has sold 125,000 vehicles monthly on average in the first six months of this year. The Geely Boyue, which is the basis for Proton’s first SUV that will be launching in Malaysia later this year, has charted sales of 20,000 units a month in China this year.
“The car that I like to drive the most in Malaysia is the Volkswagen Tiguan – the ease of driving and comfort is very good. When I drove the Geely Boyue, I found that the quality is approximately the same. So there has been tremendous improvement in the cars produced by China and Geely,” said Mahathir, when asked about his experience testing the Boyue. The PM has been spotted driving a previous-generation brown VW Tiguan in Langkawi.
GALLERY: Geely Borui GE MHEV and PHEV
Looking to sell your car? Sell it with Carro.
Proton, Geely > all
Madani go keep skin lah. This is how to run a car manufacturing company, not talk as if smart, but nothing to show but rubbish.
Because Geely is smarter than you, they are now 267th Fortune 500 company, while your old master now await to check in to Bamboo River Resort.
Hahaha yeah man ! Actions speak louder than words ! If there’s one thing Dr. M and Li Shufu have in common, aside from a passion for cars, is that they both walk the talk !
MAI did some things, but they should have done more… who knows, maybe under the previous government, MAI was held back.. ? Still, MAI is better than useless MAA. 101%
Geely and volvo target for medium to lower class market. Shall put in more effort in next 10 years to get to german car sector
Both are useless, period.
If govt is serious in accommodating automotive industry players, they should ask the players themselves, not hire overpaid monkeys to confuse and deceive them.
Meanwhile, another glorious day for Geely empire. while naysayers still stuck thinking Geely is only interested in Lotus, this is yet another indisputable fact that Geely is committed to invest and grow Proton to be Volvo 2.0. All the Geely bigshots led by Li Shufu himself personally welcome Tun and spend their precious time to commit to Proton and Malaysia.
Proton, Geely > all
Ex Proton CEO Datuk Abdul Harith did confess Proton was struggling under the NAP. Msians were buying foreign brands despite inferior safety kit and lower equipment levels.
we can see that China actually win over Japan from tun m action!
whether China or Japan. this is another brilliant masterstroke by TunM to pull in FDI and Msia swashbuckling in global arena again. Unlike our jaguh kampong former leader, invert polisi sucking local ppl high n dry.
It was becoz of former leader that P1 was able to partner with Geely. Otherwise expect another round of protek… oh wait, another round is incoming for P3. Be prepared to be suck dry to pay for higher taxes, and this time P1 has nothing to do with it.
OMG you Tun M cult worshipers are seriously dumb. In case you didn’t know what went on behind the scenes, Japan was less than enthusiastic about Mahathir, and Mahathir had to pivot back towards China after all the China-bashing that he did.
Remember “Proton is now sold to China. My child is dead. Please excuse me. I have to cry. Bla bla bla” that stupid drama crap that Mahathir wrote when Proton joined up with Geely?
What happened now? Previous govt was smart enough to stop the hemorrhage and let Proton’s stake be sold to a larger-volume player in order to gain economies of scale and access new markets, and Mahathir said that it’s tantamount to selling a Malaysian company to China.
And now you cultists are clapping that he’s merely repeating what the previous government did.
When Najib made various agreements with China to increase the bilateral business between both countries, and expanding direct G2G projects like the gas pipeline projects, and bringing in big-ticket China JVs for projects like ECRL and Forest City, you guys are saying that he betrayed the nation, selling our country to China.
Now, he’s going around asking Malaysian businesses to tie up with the Chinese, and you guys clap and cheer although he’s basically repeating what the previous government did.
Mahathir is right. Malaysians definitely are uneducated and easily fooled!
10000% fully agree!
2.6 billion China pipu oso fully agree!
Since when got 2.6b pipu?
P1, Geely, Mesidis, VolvoCar, VolvoTrucks, Lotus > all
but MAI does not run P1. theyre more of a coordinator for players and stakeholders in M’sian automotive industry.
Geely is only concerned about it’self, MAI has the whole ecosystem to worry about, why conflate MAI with P1 management?
https://paultan.org/2017/05/25/tun-mahathir-saddened-by-proton-geely-deal/
agree on the madani go fly kite
geely is having market of 100000 billion people
so easy to sell and with such protection scheme, wonder why they are not number 1 in the world
Fantastic news ! I think Geely is slowly, but surely winning over Dr. M’s heart. If Geely can convince Dr. M that Proton is in good hands, then there will be no real need for a third national car.
No, you don’t know what Tun thinks.He is smart. He is now in China pulling investment. so he has to talk something which will please the ears of Chinese. So, this is just the sweet talking only. Please don’t take it to the heart.
When ajib did it last time said selling country to China…but when atuk doing it now, it pulling investment? What the phuckery is this la?
Tun M was worried before, yes. But at that time it was not confirmed whether Geely will get 51% or 49. And if they get 51, will they replace the board of CKD directors with CBU chinaman? Will they sacked 50% of proton total number of manpower?
That what was tun m’s worry. He didn’t hate proton, he doesn’t hate Geely.
No, tun said that after geely officially announced 49% stake in proton. Please get the fact right!
Geely will positioned Proton in China as cheap entry-level cars lar. What a pathetic downgrade but Proton deserves it. So much hoo-ha kereta global this that ricardo engine bla bla bla yet ends up as low level macai car.
Too bad local rakyat rejected Proton and now need China rakyat to buy it. Lol…padan muka!!
But but but P2 here is entry level car, pipu buy it coz it is cheap but still can be jaguh kampung wor. So if follow your logic P2 is a pathetic downgraded celup jepunis cars
But Tun cronies dislike it.
Gudluck P1 !
Hopefully by seeing how good Proton will be under Geely hand, Tun will see no reason to established another national car. Instead, maybe just create a sub-brand under Proton for luxury or electric car, maybe.
Is it possible that upon tun m persistence on pertiga and statement that proton no longer a national car, that this initiative comes about?
i think tun m is putting challenge to proton geely jv to work hard keep our side of the bargain. Not unlike previous government who just let geely decides everything without a bit of leverage in negotiation. Previous government see geely as savior hence no power to negotiate terms.. tun m method is to challenge them. Competiton makes good teacher.
See, even Tun loves a VW Tiguan! Even he won’t drive a Proton. Common la boss, stop with the new Malaysian car project, let’s admit it….EVERYBODY makes better cars than Malaysia.
Tun loves Jepunis more.
Bapak luvs money best (in any forms of currency sufficient)
It’s sad to hear from Tun M that even after 37 years, upto 2018 Aug, Proton car still does not comply EU import requirement! Proton need Geely engine and expertise…. where has Rakyat monies went???? New Msia Gov should set-up RCI to investigate….
What’s the point, we still using euro2 fuel.
Garbage in, garbage out.
What’s the point, we still using euro2 fuel.
Garbage in, garbage out.
Within 37years Euro standard have moved from Euro2 to Euro5 and transitioning to Euro6. Proton hv thus far afford to build Campro engine thru 3rd Gen up till now. Can’t expect proton to keep up in such small volume.
Honda city engine is also euro2 only… If I m not wrong.
I think proton hv got its marketing strategy wrong.. An after thought. Should hv focus on asean and South Asia market before thinking euro market.
LOL yes, please investigate.
Mahathir was the Chairman of Proton up till March 30th, 2016. Just 2 years ago. And he was the one who has been asking the governments of Badawi and Najib to pump billions in grants to Proton, to subsidize Proton, and to invest in useless ventures that ended up nothing.
Detroit Electric? Nothing came out of it. What happened to the Ricardo engines? Millions were paid to develop modular 1.1-1.5 liter turbocharged engines. Remember the millions paid to Petronas for their *EURO-2 turbo engines* while Mahathir was also the Petronas Chairman, looting Proton to pay Petronas? And how about the loss-making prestige project to re-skin the old Accord as the Perdana, despite the lack of a market for that vehicle? And also the brief Suzuki tie-up that resulted in the rather unpopular Ertiga after Mahathir left Proton, which also resulted in the unavailability of Suzuki models in Malaysia anymore thereafter?
All these happened due to Mahathir, and Najib did only two things as a last resort to turn Proton around – approve the RM1+ billion soft loan (which Proton has to repay the government, it is not a grant!) so that the vendors can get paid, and to approve the sale of a significant stake in Proton to an international bidder, with competition between the PSA Group and the Geely Group vying for a strategic stake in Proton.
Years earlier, when the Volkswagen Group was interested to tie up with Proton, why did it fail? BECAUSE MAHATHIR REFUSED TO ALLOW VOLKSWAGEN TO CUT OUT THE OVERPRICED INEFFICIENT CRONY VENDORS.
So, if you guys think Mahathir is here to save our auto industry, THINK AGAIN.
Second that bro. The Razak New Economic Policy (NEP) no more relevant now, the government has to transform this divisive race-based economic policies in order for Malaysia to progress economically.
This is very interesting ….the 3rd nasional car might be a new brand under Proton as there some talk about this
On Tuns mind it’s always Japan. China doesn’t appeal to Tun at the same level. However he cares for Proton, so he is there…
Bapak is playing “poker” with China & Japan. 1st he went to Japan for funding. Then he is in China now to NEGOTIATE the Terms & conditions Personally with China leaders including Geely.
Only he knows what is going on. We just have to believe in him for NOW that whatever he is doing, he is doing it for the RAKYAT. If we don’t like what Pakatan is doing, we can always change the Gomen again Right!!
Yes!! Bravo Team M&A!
TunM & Anwar
At least Proton design is much better design than outdated Honda design and Honda donkey design
Wah.. you cakap serupa Nazri. During the days with Honda, you praise Honda high up. Now not with them pijak pijak Honda. Besok break up with Geely, pijak pulak Geely.
Biasa-lah, dia ikut angin tiup bro.
Nothing to do with business, pipu have views, and yes jepunis cars are ugly, sad to say
I said this already.
U seee TUN M, in automotive industry….its all about economic of scale. Ko nak buat pro tiga buat apa? setakat jual kat malaysia with limited market volume. GEELY is your savior laaaaa.
Mahathir likes Tiguan.
tonton like cayenne more
Why Geely is success and will become one of the giant automobile in the world? because there is no cronies and political influences. No nonsense in business. enough said.
You obviously did not know how the PRC communist party work don’t you?
Newsflash noob, it has nothing to do cronysm or politic, it is all about sheer VOLUME!!!
I think TDM is on the right track instead of the 3rd national car. Leverage on the positives of Geely i.e huge market, research, electric technology and overseas ventures.
Coming from the man who singlehanded destroyed Malaysia auto industry, and became the father of Indon and Thai auto industry.
Still trying to get his cronies into the proton supply chain. All about himself
oh..mahathir gave the green light for the sale of Proton? Really?
Good thing previous gov sold the brand to Geely, if not, now, Mahathir with his pride n ego, will never sell Proton, and continue bailing out them n then blame previous administration for the huge debt.
Sekali they launch Proton Boyue see see price RM130k… LOL koyak
hahaha… funny seeing Rashid Musa… only compare Proton with European konon.
“Proton will bear the task of exterior and overall design”
OMG, are they serious?
Which current proton models design looks awesome?
wrong move by Geely there to rely on proton design
Geely on its way to change the world perspective of chinese cars, as how they owns other brands and locate their selling units. They’ll just want to be number 1 after VW Group. For proton… Geely owns you guys for your bad history.. so there’s a lot of space of improvements and that’s a good opportunity for them to show the world.. haha logic?