Proton formalises agreement with Geely, launches new SUV

Geely Holding owns 100 per cent of Volvo Cars, the entire stake of The London Taxi Company and made more than one million cars globally last year

KUALA LUMPUR: DRB-Hicom Bhd today signed a definitive agreement with Zhejiang Geely Holding Group Co Ltd, formalising the sale of a 49.9 per cent stake in Proton Holdings Bhd to the China-based company.

The signing ceremony here was witnessed by Prime Minister Datuk Seri Najib Razak.

Najib later launched Proton’s first-ever SUV, based on Geely’s best-selling model, the Boyue.

Also present were Second Finance Minister Datuk Seri Johari Abdul Ghani, International Trade and Industry Minister Datuk Seri Mustapa Mohamed, China’s ambassador to Malaysia Dr Huang Huikang, special envoy to China Tan Sri Ong Ka Ting and DRB-Hicom chairman Tan Sri Dr Mohd Khamil Jamil.

On May 24, DRB-Hicom signed the heads of agreement with the Chinese automaker Geely Holding, which also owns Volvo, on the deal.

Proton has also agreed to sell its entire equity in British carmaker Lotus to Geely Holding and Etika Automotive Sdn Bhd, an entity controlled by tycoon Syed Mokhtar Al-Bukhary, which sees the group exit the sports car segment.

DRB-Hicom Bhd group managing director Datuk Seri Syed Faisal Albar had said the deal will enable Proton to tap into Geely Holding’s vast range of platforms and powertrains.

It will also enable Proton to have access to existing markets of the Chinese carmaker, as well as right-hand drive markets in Southeast Asia.

Geely Holding owns 100 per cent of Volvo Cars, the entire stake of The London Taxi Company and made more than one million cars globally last year.

Source: NST Online

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