Business
22:29, 23-Jun-2017
China’s Zhejiang Geely buys stake in Malaysian automaker Proton
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China's Zhejiang Geely Holding Group has sealed a deal to buy just under half of Malaysia’s troubled national automaker Proton. As CGTN’s Rian Maelzer reports, the agreement will give the Chinese automaker a solid foothold in the ASEAN region and provide hope that Malaysia’s Proton can finally achieve its aims.
The deal will give Geely instant production capacity at Proton’s woefully underused plant, as well as duty-free access to the ASEAN region and a right-hand drive manufacturing hub, while giving Proton a boost to its R&D capabilities, management expertise and a cash injection.
Despite former Malaysian Prime Minister Mahathir Mohamad’s opposition to the sale, the vast majority of Malaysians and analysts have embraced the new partnership.
As part of the deal, Geely Holding is also taking over Lotus, the renowned British engineering and sports car firm that Proton has owned since 1996. The hope is that Geely will be able to turn around the fortunes of Lotus and Proton the way it has done with Sweden’s Volvo.
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