Published on October 14th, 2019 | by Daniel Sherman Fernandez0
Geely and Proton Vendors have moved up together
Only a handful of Malaysian vendors have brought their game up to the standards that Geely wants…..Volvo standards.
Geely is showing how its partnership with Proton’s suppliers is changing the entire Malaysian automotive manufacturing ecosystem.
Suppliers are an important part of the manufacturing ecosystem, and the raw materials and components they provide largely determine the final quality of the product. Once the raw materials have problems, advanced technology and superb craftsmanship can not make up.
All car manufacturers should be aware of this and pay attention to the quality of the manufactured products. Over the years, Geely has done a good job in terms of quality, and Proton should also use this as a benchmark.
Since Geely acquired Proton, Proton’s most significant advancement has been to strengthen the relationship between suppliers and suppliers by helping suppliers improve quality, save costs and develop new products. Another key step in achieving this goal is to match each Malaysian supplier with a Chinese supplier through a joint venture and a technical assistance agreement to create synergies. So far, six suppliers from Malaysia have cooperated with five Chinese suppliers.
Geely and Delloyd Group
The Delloyd Group is a leading automotive OEM in Malaysia and one of the participants in the program. Founded in 1984, Delloyd has established a good relationship with Proton since its inception and continues to this day. Delloyd manufactures plastic, polymer and electronic components for rearview mirrors, door handles, sun visors, switches, lamps, and electric windows for Proton.
As a supplier of Malaysian national automobile brands, Delloyd is very proud and fully supports the government to develop the automotive industry into a strategic industry and become a catalyst for promoting domestic industrialization.
Even in the case of a decline in sales, Delloyd has not retreated, but to provide raw materials for Proton as a top priority. This mutual trust and solid relationship has finally paid off.
When Geely announced the establishment of a cooperative relationship with Proton, Delloyd can also benefit from it. Through the Supplier Matching Program, Delloyd has reached an agreement with Geely’s suppliers in China to exchange knowledge and expertise and work together to improve product quality and expand the cooperation benefits.
Because of this plan, Delloyd can now use technology that was not available in Malaysia to quickly upgrade its products and enhance its competitiveness in the industry, becoming a pioneer in the local market. At the same time, through their cooperation with their Chinese counterparts, they have mastered the technical essentials for manufacturing parts for the right-hand rudder market and have the opportunity to enter more right-hand rudder markets. This is a win-win situation, and Proton, Delloyd and all project participants can benefit from it.
In addition to participating in this collaborative initiative, Delloyd will also directly benefit from Geely’s strict quality control. Geely regularly dispatches the SQE team to inspect and monitor the quality of the suppliers’ products. The standards they use are quite strict and comparable to Volvo. Because the product meets stringent standards and requirements, Delloyd has become a Geely-approved supplier, reducing testing costs. For Delloyd, getting such a position is also a very proud thing.
Geely and HICOM Teck See Manufacturing
Another local Malaysian supplier benefiting from the cooperation between Geely and Proton is HICOM Teck See Manufacturing, a leading manufacturer of precision injection molds for the automotive industry in Malaysia, with front and rear bumpers, cockpit modules and door modules.
The company was founded in 1991. Like Delloyd, they have a very solid foundation of cooperation with Proton. After years of development, HICOM Teck See has now achieved leapfrog growth and meets the ISO 14001 and AS9100 Rev D aerospace industry standards. They are currently preparing to produce bumper modules, spoilers, cockpits and ground consoles, ready for the upcoming mass production of the Proton X70 SUV.
Previously, HICOM Teck See learned how to develop damping modules by working with a Chinese supplier and became the first company in Malaysia to implement this technology. Proton also considers the long-term combination of local and overseas suppliers, through the localization of parts and components, saving overseas freight and import taxes, greatly reducing the production costs of local automakers. Undoubtedly, this program is not only good for Proton, but also benefits the Malaysian automotive sector in terms of technical capabilities and cost reduction.
In addition to changes in the product, HICOM Teck See’s work culture has also changed, especially in terms of speed. As everyone knows, Chinese people work faster, and they can quickly implement change without seriously interfering with their daily work processes.
HICOM Teck See realizes that only by adopting this kind of work can we keep pace with our Chinese counterparts to ensure work efficiency. In addition, HICOM Teck See employees are regularly trained by Chinese partners to enhance their local talent pool while gradually developing their capabilities. It can be clearly seen that this positive effect affects not only individuals, but all aspects of the business field.
HICOM Teck See is very pleased that Proton’s supplier development team and CEO can directly participate in the project and take necessary measures to ensure product quality. From the recently released models of Persona, Iriz and Exora, we can see great progress on the product.
Geely and Proton
Now, all eyes are on the upcoming Proton X70, which will be mass-produced at the local Tanjung Marin plant. The X70 is believed to be the best-selling SUV in Malaysia, and HICOM Teck See is proud to be one of the suppliers of the X70. Proton has upgraded its products through cooperation and opened up many new markets. Therefore, HICOM Teck See is also looking forward to expanding more business with the development of Proton.