China-Malaysia Cooperation: Geely group partnering up with Proton
Updated 16:38, 20-Jul-2018
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China's Geely group is close to rolling out its first collaboration with Malaysia's national automaker Proton. Most Malaysians are eager to see what that partnership will bring. CGTN's Rian Maelzer reports from Kuala Lumpur.
Prime Minister Mahathir Mohamad likened the deal to sell half of Proton to China's Geely Group to 'selling his baby'. But that baby had seen its local market share plummet over the years, while exports remained negligible. For much of Proton's 33-year history, Malaysians paid inflated prices for all cars due to Proton's inefficiency coupled with high, protectionist duties on imports. And Mahathir met with a swift backlash for suggesting that Malaysia needs a new national car now that Proton, in his mind, no longer qualifies.
ALI SALMAN, CEO INSTITUTE FOR DEMOCRACY & ECONOMIC AFFAIRS "Mahathir and the government must pay serious attention to what the public has been demanding and step back from its announcement of venturing into another national car project. A partnership between Proton and Geely should be seen very supportively and positively."
Malaysia's auto industry association also welcomes Geely's partnership with Proton.
AISHAH AHMAD, PRESIDENT MALAYSIAN AUTOMOTIVE ASSOCIATION "They have introduced new measures in terms of improving the after-sales service, the sales outlet and training and also coming out with new models which will excite the public. We don't need a national car project to do well."
And it seems Mahathir isn't blind to the benefits of the tie-up with Geely.
RIAN MAELZER KUALA LUMPUR "Mahathir recently met with Geely and test drove its SUV, which will be the basis of Geely's first collaboration with Proton. He said he was impressed with the vehicle and with the technology that Geely brings to the partnership."
But Mahathir said Geely needs to commit to sourcing most parts from Malaysian component makers. That will be in Geely -- and Proton's – interests, earning it tax breaks in the local market as well as duty-free access to the rest of ASEAN. Rian Maelzer, CGTN, Kuala Lumpur.