Baoteng enters China countdown | Geely Proton establishes joint venture company

By the way of new energy vehicles, Malaysia's Proton's 'Chinese Dream' for many years will be realized soon.

On the afternoon of August 18th, Beijing time, witnessed by Malaysian Prime Minister Mahathir, Geely Holding Group (hereinafter referred to as 'Geely Holdings') and Proton Holdings signed a strategic cooperation framework agreement at the Geely headquarters in Hangzhou, which will deepen the field of new energy. Cooperation. The reporter learned that Geely will establish a 50:50 joint venture with Proton's parent company DRB Group. With the help of the joint venture company, Proton will enter the Chinese market and open a comprehensive electrification cooperation. However, regarding the amount and factory location Geely and DRB both said that the two sides are still in further negotiation.

'Geely promises to give Proton a bright future.' Li Shufu, chairman of Geely Holding Group, stressed at the scene. As a national treasure car brand in Malaysia, Proton is one of the two independent brands in Malaysia. Established under the leadership of four Prime Ministers Mahathir.

In the 1990s, Proton Auto entered its heyday, with an annual sales volume of 200,000 units, which accounted for nearly 80% of the local market. But in the 21st century, Proton cars began to decline, with annual sales of only 70,000 units in 2016. Since 2014, Proton has begun to look for a family. The car companies that participated in the bidding for Proton also included Renault and Peugeot Citroen Group (PSA), but eventually Chinese carmaker Geely won.

On June 23 last year, Geely signed a definitive agreement with Malaysia's DRB-HICOM Group to acquire a 49.9% stake in the latter's subsidiary Proton and a 51% stake in the luxury sports car brand Lotus. At the time, The multinational car companies participated in the acquisition of Proton, but in the end China Geely won.

Dato' Sri Syed, then president of the Malaysian Proton Auto Group, said in an interview that the choice of Geely is that Geely's technology can be injected into the Proton car. In terms of the intelligence and electrification of the car, it can also be the former. In addition, through cooperation with Geely, Proton also has the ability to enter the market outside Malaysia to help achieve its globalization goals.

Geely was stepping into the promise of the baggage book at the time. In September last year, Geely Holding and DRB Group officially completed the equity delivery of Proton and Lotus, and also announced the new Pentium, the new car of Lotus. International management team. Subsequently, Geely entered a new Bo Yue platform for Proton, and sorted out its dealers and supply chain system.

In the past year, the synergy between Geely and Proton has achieved initial results. Proton's research and development capabilities, product quality and market competitiveness have been continuously improved. Since the beginning of this year, Proton's sales have increased month by month, and sales in July have been in 30 months. At the same time, Proton's first new SUV model will also be launched at the end of this year, and gradually enter the fast-growing ASEAN market.

At present, Proton has been sold in 65 countries on five continents. However, in the globalized map of Proton, the Chinese market has always been a big shortcoming. 'Proton has been trying to enter the Chinese market.' Mahathir is answering the first When the financial reporter asked questions.

In fact, as early as 2000, the Baoteng sedan appeared at the Beijing International Auto Show. Since then, it has been seeking opportunities to enter China. After establishing a joint venture with Guangdong Jinxing Heavy Industry Manufacturing Co., Ltd., it intends to carry out localization and manufacturing. Teng has been entangled with many Chinese car companies such as Zhejiang Youth Car for a long time, but has never been able to gain a foothold in the Chinese market.

After being acquired by Geely, the cooperation between the two parties has made Baoteng’s 'Chinese Dream' a step closer. Mahathir said during the visit to Geely that the Malaysian government will actively promote the cooperation between Geely and Proton. Enter Chinese market.

'Prokter did not exist when manufacturing the car, but Geely came to the forefront in terms of quality, productivity and system capability. 'Mahatil visited the booth of Geely Automobile at the Beijing Auto Show 4 years ago, and this time After visiting Geely, he made such a batch of evaluations after testing the Borui GE, Emgrand GSE, Lectra 02, and experiencing the latest models such as the Volvo S90 honorary version. For this reason, he spoke to reporters about the future. The prospect of cooperation is: 'The cost of producing cars in China will be lower and the quality will be better than that produced in Malaysia'.

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