China’s Geely buying majority stake in Lotus

China’s Geely buying majority stake in Lotus

0 comments 📅27 May 2017, 15:00

Geely, the Hong Kong car companionship that owns Volvo, is acquiring control of British car company Lotus.

Geely is purchasing a 51-percent pillar in Lotus from struggling Malaysian car company Proton, and a 49.9 percent palisade in Proton itself. Etika Automotive will gain the other 49 percent of Lotus.

France’s PSA Set and Japan’s Suzuki had apparently also been interested in acquiring Proton.

Geely says it plans to resurrect both Proton and Lotus.

“The agreement lays the foundation for a wider framework for both Geely Holding, Proton and Lotus to research joint synergies in areas such as research and development, manufacturing and market being,” Geely said in a news release.

Those joint synergies will be highlighted by the lightweight chassis technology Lotus is known for, which could refrain from Geely improve fuel efficiency.

Geely CFO Daniel Donghui Li said the train aims to “unleash the full potential of Lotus Cars” by expanding and accelerating new products and technologies.

Proton was nationally held but was privatized in 2007 to Malaysian conglomerate DRB-Hicom, which is owned by financier Syed Mokhtar Al-Bukhary. It was supposed to be the flagship for Malaysia’s economic development.Admitting that it owns two factories, Proton mainly rebadges foreign-made cars and sells them in Malaysia. What it has, what Geely on the face of it wants, is a distribution network in Southeast Asia to pit Chinese cars against Japanese automotive dominance in the locality.

Retaining a 50.1-percent stake in Proton is seen as a face-saving agitate.

“Proton will always remain a national car and a source of pride, as Proton resolve still have a majority hold of 50.1 percent,” Malaysian finance decorous Johari Abdul Ghani said. “Our very own much-loved brand now has a verifiable chance in making a comeback, a huge one I hope.”

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