Here’s something which formalises what the man on the street has been talking about since Geely came into the Proton picture. The Malaysian company – which Geely has a 49.9% stake in – has secured the use of intellectual properties (IP) and the rights to manufacture and sell three Geely models.
The three models are the existing Geely Boyue (Proton X70) plus two models that have yet to go on sale in China – the SX11 SUV and VF11 MPV. As of now, the B-segment SUV has been revealed (called Binyue in China), while the three-row MPV has been teased ahead of a full reveal.
The agreement – dated September 24 – is for the design, development, manufacture, sale, marketing and distribution of the three models; and it states Brunei, Indonesia, Malaysia, Singapore and Thailand as countries that Proton is allowed to market the licensed models. The licensing period is 10 years.
Note that all of the above are right-hand-drive markets, and Proton has been earmarked as Geely’s RHD and regional hub.
All this was revealed in an announcement by Hong Kong Stock Exchange-listed Geely Automobile Holdings Limited, which is the controlling shareholder of Zhejiang Geely Holding Group Company Limited (ZGH). The latter is a stakeholder in Proton. The license fee for the IPs is RMB 1,344,000,000 (RM808.3 million), which will be settled by ZGH in five equal annual instalments.
A related “Proton Sales Agreement” will see the Malaysian carmaker purchase CBUs, CKDs and related after-sales parts for the three models for a period of three years ending on December 31, 2020. The proposed transaction amounts are RMB 398,729,892 (RM239.8 million) for calendar year 2018, RMB 3,803,497,732 (RM2.28 billion) for 2019 and RMB 4,147,700,048 (RM2.49 billion) for 2020, with a margin of 5.83% factored in for the vendor.
In the note to its shareholders, Geely says that the sums are fair and reasonable, and are in the interests of the company and the shareholders as a whole.
The licensing agreement – which according to Geely is entered into in the ordinary and usual course of business, and conducted on normal commercial terms – will also provide an opportunity for the group to export its technology and products, besides generating additional income for the group. Geely has no operations in the covered ASEAN countries, so there’s no overlap for the group.
So there you go, the confirmation of the sleek VF11 as the “new Proton Exora” and a smaller B-segment sibling to the Proton X70, which official launch is just around the corner. What do you think of the trio?
GALLERY: Geely VF11 official teasers
GALLERY: Geely VF11 leaked photos
GALLERY: Geely Binyue
Looking to sell your car? Sell it with Carro.
Mana Geely Borui to replace our Perdana?
Despite all odds & bashings, Perdana2 seems to be selling well according to their estimates. Looks like they wun be phasing out this generation anytime soon.
Hidup Proton! #MalaysiaBaharu
DRB must return the $2 bil Grant money for their so called R&D. Reading such news, not sure what R&D Proton did that needed $2 bil. Malaysia is now officially the Asian hub for China’s dumping of Geely’s excess production .
Geely only started in 1997. Proton started in 1985. It is Proton that should be teaching Geely and giving the rights to Geely to market Proton cars.
How can a younger company like Geely make USD30 billion last year ?? That is RM135 billion) when Proton makes ZERO?
Proton also had world markets to tap into. Proton also had China market to tap into.
well…..just looking at the product’s quality…. Geely already won far ahead. I’m not surprised proton is sinking after all these years and proton should be thanking Geely as they can finally sell premium products.
Geely have a line-up that almost match VW, other than some missing large size SUV and MPV.
Passat – Borui
Arteon – Borui GE
Tiguan – Boyue
Touran – VF11
Jetta – EC7, GL, Binrui
Golf – S1, GS
T-Roc – Binyue
Vento – FC3, SC6
Polo – X3
Up – X1
Proton has and always be a rebadger. Even from the Mitsubishi days, Wira and Waja etc were just rebadger days.
So Geely tie means Proton is again a rebadger…..sad sad sad
Proton learnt what in 30 yrs then???
If you don’t know the difference between rebadging and reengineering, then whatever you say carries no weight, not even a feather.
Proton learned that whenever P2 articles come up P2 SA and cybertroppers badmouth P1.
Bashing P1 in P2 article, yeahhhh
No more Proton for me ever. Disgusting what Proton has turned out to be. Why still keep the Proton name ? Might as well turn all into GEELY dealerships. Stop cheating the govt from taxes as Proton national car company status must be REVOKED !
because 51% share still hold in Malaysian Hand, which mean, it is still consider as National Car.
Even Cherry, Haval and Great Wall are having a hard time to sell in Malaysia and the whole ASEAN.
How sure are you that Geely will sell?
Look at Haval in Malaysia. Struggling.
personally, i’d prefer VW approach- platform sharing, common motor/tranny set up, common components and build quality standards and what not, BUT with indigenous design.
Not really. With VW, theres the high and low approach. For developing countries (Brazil, Middle East, MY, India, China), their cars r distinctly cheapened and with lower built quality compared to EU/US versions. With Geely approach, I see they want to bring the markets up with leading techs and safety.
Correct just like how P2 tumpang glamour Toyota which tumpang glamour Geely. At least P1 tumpang glamour 1st hand, unlike P2 tumpang glamour 2nd hand.
P1 engineers did the LHD to RHD conversion
More importantly Preve replacement need come in soon.
More importantly Proton sparepart & prices match its MY national car status.
If you’re poor, don’t attempt to buy a car. No matter how cheap Proton spareparts is, it cannot match kapcai parts prices.
I want new Iriz! Make the design sleeker, improve the fuel efficiency, improve the build quality, maintain or if possible, improve the handling or the fun factor, make the boot bigger a bit, and throw in a few gimmicks like DRL.
All these years Gomen spent about RM20 billion on Proton and all Proton can achieve is this??
What were the highly paid designers and engineers in Proton doing all these years in office?
To make matters worse we sold 49.9 percemt of Proton for only RM170 million and lost Lotus also
You are paid for spreading fake news, along with 170 million , P1 also get installation of boyue platform
We need more Li Chunrongs to come into Malaysia to guide Malaysia to greater heights.
Judging by current trending for small cc cars, more logical Binrui to replace Preve & Iriz next.
I tot u want p1 to close. now hoping for replacement instead close down… change of heart already maybe?
He has seen the light
The big question is, which Mesian family volunteer to be P1’s guinea pig..
New exora……slurppppp!!!!!
Kalau beli kereta proton tapi hutang 9 tahun amboi.. amboi..
Sendiri dah pokai buatpe berangan2 mati2 mau beli kereta? Pakai motor sudahla! Dah xde duit, janganla boros lepas tu main komplen je…
Still Malaysia has not addressed the fact that we have the highest car prices in the world and Malaysians pay packet does not commensurate with the prices of cars
Why have all these Geely and Proton when car prices are mahal gila? This China car also will be so mahal for Malaysians
Where is the 30% car price reduction promised by our previous gomen?
Still Malaysia has not addressed the fact that we have the highest car ownership per capita only behind USA. Some houses have more cars that drivers living in it. Why do we need so many cars? Something must be seriously wrong when cars are way way too affordable here. Mahathir’s 2nd coming is a godsend as he will bring balance to the ravenous cars on our finite roads. He will raise taxation on cheap cars and only make those worthy to own one. Balance will be restored when cars are more expensive.
Member2 dh beli recond toyota wish/estime la.
Rugi a beli toyota tapi tak besh takde turbo
U Turbo kornerr exit usj 110kmh?
caldina tebo favoret abang saya…
Caldino tebo crampy wagon, not spacious MPV as exora
Caldina? You just flogging a dead horse, pity your beloved brand nowadays only produce crap ugly underpower cars
Lucky China and Geely save Proton. If not, sure Proton lingkup.
We need more people from Mainland and more Li Chunrongs to run our GLCs and the many Ministries in Putrajaya
Malaysia will be first world in 5 yrs time overtaking Singapore
Looks a lot better than current Exora
Of course anything that is newer will look better. Duh!
Prolly D segment MPV, a segment higher than Exora
Geely quality is far better than Exora. China brains are top. It does not catch fire when going up Genting
Old twisted story brahhh
Aside for ASEAN, how about other major RHD market E.g. Britain, Japan, Aussie, India, South Africa, Mauritius.
UK, Aus, & India is alredi big enuff a pie for P1 in the foreseeable future. No need hunger for buffet table if currently have small stomach.
India won’t take China cars when their India cars and their Indian joint venture cars are so good.
Australia, Camry is only AUD22k. Why should they even buy a China car?
In UK, even Proton failed and Proton cars are 100X better quality than China cars.
It is like why jepunis cars failed in Europe
Other non ASEAN RHD markets will be manufactured in Tanjung Malim but exported as Geely.
P1, Geely, Mesidis, VolvoCar, Volvo Trucks, Lotus > all
TUN hit the nail on the head agains
https://paultan.org/2018/09/24/proton-was-a-success-not-a-failure-pm-tun-mahathir/
Correct. Big boss has spoken.
Dont be proud of Geely when PRoton does nothing and Geely does all the research
Be proud of Geely and Mercedes when Proton does an inch of work
U r right about that. We wun be proud if P1 just rebadges cars like what P2 did, but they had put lotsa effort and research into reengineering Boyue into X70. So yeah, we shud be rightfully damn proud about it yeah. Rightfully proud indeed.
Proton, Geely > all
Beli kereta proton tapi hutang 9 tahun amboi! Amboi!
the new exora
The MPV gets its groove back…
Rm300million sale to Geely for a recoup of Rm800million worth of models, and even more incoming. Wowzers! A near 300x return of investment! Kudos to Najib and previous Government. If this was Bapak time, jangan harap lor!
Iriz alone development cost RM560m…..
Iriz justified its high development cost by being a mass market model.
With the strong lineup of 3 brand new Proton models. 2019 sales forecast in Msia – 150K in addition;
P1’s Total Import Volume (TIV) – 137K.
Brunai – 10k
Indon – 77k
Singapura – 1k
Thailand – 49k
Brunei 10k? In your dreams. They don’t have import tax.. Cars are bloody damn cheap.
Proton and Geely can dream big but you cannot fight cars from Thailand
Japs will reduce their prices and Geely will close shop
Jepunis cars from Thailand no quality
Great but number one question is the after sales service. Check back again in 3 years and we will know whether Proton is up or 6 feet under.
No worries. With Geely help, guidance, and investment, P1 services r revamping as we speak. In mainland, Geely ranks best in Customer Service Satisfaction 2018 among local China brands, only slightly below Toyota & Honda.
Waiting for fake honda fan saying he will bu only if got auto door
Hutang 9 tahun x guna pun auto door tu..
dah la tu Man, tau la bank reject loan 9 tahun ko kan? sabo la Man, ko beli je kete proton tiara seken, rm2k cash. lantak ko la Man..
Sianye.. harap bersabar ye.. used car banyak
True. Just look at upcoming Honda models. Like Honda Insight design doesnt have any shaped at all including Honda Accord design. As well as new gen Honda Jazz doesnt have any inspiring at all. New Gen Honda Jazz front bumper copying from other brand models front bumper. Aiyo, must elsewhere buy Proton, Hyundai, Kia, Toyota, Nissan, Mazda, Peugeot, Renault better still isnt it
So far,Geely is bringing in SUV n MPV.Might as well bring in the entire sedan 1.3,1.5,n 2 litre versions.No need spend so much on development costs.So the Iriz, Suprima,Preve can bungkus.Saga n Pesona also have to go in 2 yrs cos the product life cycle is getting shorter now…Looks like it is Geely cars n SUVs n mpvs…heavily rebadged with tiger logo.
Iriz akan masuk Geely 1.0L turbo enjin dgn FC 4.9L/100km
My 12 years old myvi with overdrive every Day cucuk iriz at Port Klang hway..
That Iriz was just leisurely cruising on the highway, why you want to drive like mad just so you can try to cucuk it with your unsafe Myvi?
Said tin Milo no hpf myvi driver
Tak faham
Sy kata Iriz sudah planned akan masuk 1.0 turbo enjin dgn 135hp dan 205nm
No wonder why so many Myvi accidents and burnt out hulks at the side of Port Klang highway in my daily work.
Mimpi la..
I think geely starts off with SUVs and MPV due to the increasing demand of such vehicles here and thus recoup their market share and stabilize their brand here in this region.
u oso change side? instead ask p1 to close u ask Geely to bring more sedan.. welcome to tokmoh n john club
He has seen the light.
B segment suv, now P1 is making sense..I don’t mind a china made, with Volvo collaboration, rebadged proton, as long as it’s fairly priced & well equipped.. you can take my money now
Price is the most important factor…. looks good so far…
Cant wait for sx11.. exterior n interior design more edges and sharp than boyue
The money proton have to pay to geely are huge. Proton presence in asean countries are bad. By just selling few models wont guarantee consumer trust and therefore ROI. Hopefully the G wont have to bail out proton again if this chinese gamble goes wrong.
If prices right, the mpv will sell well
Heavy doubts will sell well here.we love mobil MPV is because we are family oriented person and we have the habit to travel with full family. we need to have car that have many seats, so mobil MPV the answer.
But now rupiah slump to lowest in 26year, hard times to buy mobil. Lucky sobat-sobat Mas..
I am highly skeptical if these 3 product line up can sell in volumes across Asean. Even in M’sia they are almost certain above RM80K (at least for Sx11) and probably rm100k (for VF11. its big). Extra duties for cbu asean imports & lacklustre brand image, it will be an uphill task for Proton to make these 3 models competitively positioned againts the hrv, crv & innova. Australian, south african, UK market make more sense but surely Geely wont allow proton badging then.
I wonder why the Binrui is not listed, since Preve is ageing & badly needs replacement. The persona, iriz & saga too in another 3 years.
Geely has no presence in Australian, south african, UK markets but P1 does. So I would think Geely might allow P1 to sell the cars there under their name.
Where u live before? Any ASEAN CBU has no extra import duty.. any car made by ASEAN member has 0% import tax
Ada berani jadi guinea pig
Judging by the number of customers for untested Biza & Mivi, theres plenty of MY pipu willing.
Come geely. Come out your product with campro cfe engine la..
The way I understand it, Proton needs to pay RM808 mil for the IPs, and also billions for the cars in CBU & CKD format. It appears that Proton can’t pay for them now, and thus ZGH is paying on behalf. Proton still need to generate revenue by successfully selling these cars in order to repay to ZGH.
Excellent news ! IMHO, the SX11 has the most potential in this trio from Proton’s perspective. Unlike the larger CR-V sized X70, the HR-V sized SX11 will surely cost less and be more accessible to Proton’s main buying demographic.
Plus, the 2018 SX11 will be a fundamentally better car, pound for pound, than the 2016 Boyue / 2018 X70. Understand that in the Chinese car market, a lot can change in just 1 or 2 years. The SX11 (and the still unrevealed VF11) embodies everything Geely Group has learnt in the past 2 years. The Boyue/ X70 is a brilliant car, but the SX11 will likely be even more so !
Most critical of all, with the SX11, Proton will soon have a very strong answer to Perodua’s upcoming small SUV. Going by past Perodua car launches, and their ‘diam-diam ubi berisi’ philosophy, you can bet that the Perodua SUV launch will come as a huge surprise to many, and it will take the market by storm. Perodua’s SUV will likely become their flagship model, and it will be even more sophisticated than the new Myvi.
But for now, Proton-Geely’s main priority is the X70. I noticed that Proton is trying to move the brand upmarket with the X70, by giving it exposure to a more affluent upper-class demographic in their public preview. These are the kind of people who can easily afford a new BMW or Mercedes. To them, a Toyota Camry is a ‘cheap car’… needless to say, Proton and Perodua are completely out of the picture, and Chinese cars even more so.
Unfortunately for Proton, they need to convince more high income Malaysians to buy Protons (as a second family car, at least) if they want to move upmarket. Perodua has had more success in that respect; Perodua’s buyers come from all kinds of backgrounds, both rich and poor. You can see many new Peroduas in places like Damansara, Bangsar, Hartamas etc., but not too many new Protons. Aside from Subang Jaya, Shah Alam and Cyberjaya, I do not see many new upmarket Proton models (Prevé/ Suprima S/ Perdana) in the other affluent Klang Valley cities, only cheaper Proton models like the Saga, Iriz and Persona.
It will be difficult for Proton to change perceptions, but rest assured that time changes everything. Personally, I feel it still mainly depends on how well Proton takes care of their existing customers. It’s easier to convince an existing customer to upgrade from a Saga FLX to a new Persona/ Perdana, than to convince an existing Honda or Perodua customer to buy a new Proton. Some people will never care about Proton no matter what happens, and that’s fine. Which is why Proton should care more about those who still do. Otherwise, they’ll just keep losing more and more existing customers… chasing potential new customers. Yet, Proton still needs to grow their customer base somehow. There is a fine balance to everything. Anyway, sorry for the long rant, it’s been a while since I shared my thoughts for Proton. All the best to them and godspeed !
Proton cheap to buy, maintain so expensive…
You got confused between the Proton badge and the Perodua badge. Perodua are so freaking expensive to maintain, especially when the rear axles give way.
Maintain perodua power window switch much more expensive
Trying to maintain a burnt out Myvi hulk is even more expensive.
“It will be difficult for Proton to change perceptions, but rest assured that time changes everything.”
Difficult, but not impossible.
Before 2014, Toyota Vios was even called Godcar, it is simply faultless in the eyes of the consumers. Severely underspecced tin milo, overpriced, but people didn’t care, tak nak pening, tak payah fikir, beli je. Trying to get even rm1k discount also as if you need to beg SA for mercy.
Then, Honda began putting VSC in new City and others, and the rest is history. How the tides have changed.
The tide, when and if it shifts to Proton, will be fast and massive. And i have absolute confidence it will. It’s fine already, why is that? Because Geely is here!
Capital? Skills? Technology? Manpower? Logistics? Politics? Sentiment? Anything and everything, Geely has literally unlimited resources at its disposal! What Geely wants, Geely will get! It doesn’t matter even if you are the oldest automobile company in the world, NOTHING fazes them, the world is your oyster! Rejoice Proton, for salvation is here!
Even if it means getting unfair advantage, seize the moment! Fear! Fear the might of Geely empire! Fear the inevitable fate that awaits those who oppose them! Force the opponents to exhaust all options, yet still lose. You can fire your arrow from the Tower of Babel, but you can never strike GOD!!
Volvo Cars, Polestar, Lotus, Lynk & co, Volvo Trucks, Mercedes, Proton, Geely > all
Proton sparepart mahal, makan minyak beb.
Saw 2 times they testing the X70 on MRR2/Duke. One time full camo on heavy rain evening and another one minimum camo few days ago on light rain evening. Strangely they test during peak traffic time when people back from work but opposite direction. Maybe to tease the road user. Im sure a lot of people who use Duke and MRR2 saw it too. They test 2 units X70 each time. Looks good tho.
test fuel consumption in bolehland road lor if they choose time like that.
Flogging a dead horse are we? In the new Malaysia, hopefully everyone stays away from these horse excrement designed to suck
Stop talking about your Toyota then.
You are Honda salesman. Just stop talking about Honda. Lousy Service for Honda Malaysia, Lousy Assembly Service for Honda Malaysia, Lousy design for all Honda models. including to the rest of the Honda fans.
Yeah, but is the tech transfer is there? What we want is the knowledge transfer not cheaper cars….
Perhaps only yous saying like this. Other Malaysian all want Proton to sell a Ferrari with a price tag RM100. Safety features not important as long as it fuel consumption is low
Right, bring out the popcorn, this is going to be fun. Nice looking vehicles but does it drive as well? Jeremy Clarkson where are you?
He moved to another show. Didnt you know?
Yahoo!!!I want the mini SUV and MPV. Come come mari come
Proton should do in detail analysis. who is their target market before bringing in a new model and also price strategy.
Target market only looks at pricing. If they were looking for Csegment SUV but can get Dsegment at Csegment price, they will go for it.
u think they don do that?
Geely SX11 = Proton X50 = RM68K
Geely VF11 = Proton Exora = RM88K
9 years loan? Haha
Keta baru adalah as try and error.. Better tggu org beli baru review..
These 3 models are what Geely is interested in exporting to RHD markets. Note that all 3 are the latest models & none are sedans. This is to tap into the growing SUV market in ASEAN & other RHD markets. MPV is another niche market. Geely is smart in that they don’t wish to fight on the regresssing RHD sedan segment but to tap into the growing SUV segments. Very astute these Chinaman.
My guess is that the replacements for Saga, Iriz, Persona, Preve (all sedan models) will not be a priority for Geely & if Proton wants replacement, it’ll either developed own using the BMA platform & sourcing same power train from the SX11 SUV and/or VF11 MPV. Of course, have to pay royalties for the use. But, it’ll still be cheaper than developing on their own starting from zero.
One thing Proton needs to be aware. If Proton does not perform as up to expectations of Geely, don’t be surprised if Geely sells off their 49.9% share. Don’t think for a moment that this is back in the old days where the gomen was writing blank cheques whenever you want. This is business. Fail to show profits, fail shareholders expectations & be prepared to be let go. If you think am bluffing, look up Geely purchase of Australian DSI (gearbox) company. They sold off majority shares in 2014, five years after buying them over. Then this year, they sign agreement with Aisin to develop & buy gearbox from Aisin. Read between the lines.
So now wat happen to their new engines developed by Ricardo ? I remember Proton did pour alot of money there.
As I told you, only fool people will buy lousy Honda quality with Honda models designs look like donkey design and Honda models designs looks like outdated and ugly as well as Honda service quality is very terrible and even Honda assembly quality is very terrible too for all Honda models. Only smart and clever people will buy Proton, Mazda, BMW, Mercedes, Toyota, Kia and Volvo with Proton design, Mazda design, BMW design, Mercedes design, Toyota design, Kia design, Nissan design, Hyundaj design, Mitsubishi design and Volvo design looks beautiful, well-designed, more attractive, more fashionable, more stylish and more elegant as well as Service quality and assembly quality for Proton, Mazda, BMW, Mercedes, Toyota, Kia, Hyundai, Mitsubishi, Nissan and Volvo is improving, well progressed and well maintained
So what, I’m still poor family that only can drive 2nd car.
!!!!!!dari dulu sampai sekarang….sama saja,. Mana pergi engineer² automotive utk membina kereta sendiri mcm Korea…..!!!!!
Made in China~~~~pick toyota
Congratulations proton,you have became geely authorised reseller.
No sedan?
Or supermini?
It seems rebadged is coming back. During Proton glory era they use to adapt JPN into their vehicles. Story has change and now switch to CHN. Wonder when it will switch to Korea. Since all related company is under Asian Country.
All these negativity will bring us no where… respect with all ur opinion and ur super automotive knowledge even though u r just driving second hand vios… but please… its our nation product… we should proud.. what ever positive idea and plan we should hope for the best….
Proton now became a rebadger instead of car maker. What a lousy company.
Then what makes it different than your Perodua? Hypocrite much?
It’s different. Perodua never blame scold car buyers if sales tak laku.
Google back 2014 what the P1 chairman said only to retract it later as misquoted lol…
So it was retracted because it was misquoted. Meaning Proton never made that statement hence never officially blame the buyers. But we do know that Perodua had criticise an expert German automotive engineer when he told them the flaws in their cars. Perodua, until now, had never retracted that statement.
Quite good sharing ideas & technology transfer between Proton & Geely, but very bad if Proton continues (may be being indirectly forced by Chinese Geely) using Geely’s engines and platforms to produce Proton’s upcoming new models!! Come on Proton, show your national Malaysian image!
Proton can still lives on if it can secure its competitive advantage. For instance, Geely produces the car models and Proton makes enhancements to produce variants for ASEAN.