Published on June 23rd, 2017 | by Amirul Mukminin0
Zhejiang Geely Holding Group Signs Final Contract with DRB-HICOM
Zhejiang Geely Holding Group (ZGH or Geely Holding) announced that it has signed a final contract with DRB-HICOM Berhad, acquiring 49.9% shares of DRB’s Proton and 51% shares of luxury sports car brand Lotus.
Malaysian Prime Minister Dato’ Sri Mohd Najib Tun Abdul Razak, Chinese Ambassador to Malaysia Huang Huikang, Minister of Finance II Datuk Seri Johari Bin Abdul Ghani, Second Minister of International Trade Dato’ Seri Ong Ka Chuan, Prime Minister’s Special Envoy to China Tan Sri Ong Ka Ting, Chairman of Zhejiang Geely Holding Group Li Shufu, President of Zhejiang Geely Holding Group An Conghui, and Managing Director of DRB-HICOM Dato’ Sri Syed Faisal all witnessed the signing.
The acquisition is expected to be completed in three months, after which ZGH will form a core management team recruited from a pool of global candidates to ensure the smooth operation of Proton.
Established in 1983, Proton is a wholly-owned subsidiary of DRB, Malaysia’s largest automobile manufacturer, and the only full-fledged OEM car manufacturer in Southeast Asia. Proton has operations in the UK, the Middle East, and across Southeast Asia and Australia. The Lotus car – with its British heritage and its unrivalled engineering expertise – has been a world renowned brand, recognized for its innovation and performance. Moving forward, ZGH will make every effort to enhance the market competitiveness of Proton and Lotus and to foster the revival of the two brands.
Li Shufu, Chairman of Zhejiang Geely Holding Group, said: “Our partnership with DRB-HICOM will enable Proton to become the industry leader in Malaysia and a top three brand in Southeast Asia. We will also continue to expand Lotus’ product portfolio and increase production to further enhance its brand. Furthermore, the deep regional knowledge we gain from Proton and Lotus through this transformative partnership, coupled with our technological expertise and leadership in innovation, opens the door for ZGH to become a major player in the ASEAN market and will help us reach our sales target of three million units by 2020.”
Managing Director of DRB-HICOM, Dato’ Sri Syed Faisal said: “ZGH which also owns Sweden’s Volvo Cars, London Taxi Company, LYNK & CO and the Geely Auto portfolio of car brands is the right partner for Proton. Their success with Volvo and London Taxi Company, and of course with their own Geely Auto brands demonstrates their capabilities both as a bonafide carmaker and as a partner.”
“With ZGH making Proton their right hand-drive hub for the ASEAN region, Proton can now target the immense ASEAN passenger car market for both our existing models and Geely’s models. Proton’s status as Malaysia’s national car is secure, and DRB-HICOM remains a majority shareholder,” he added.