Geely purchased two foreign brands and became Lotus’s biggest shareholder

Shanghai, May 25th, Gasgoo - As early as in 2010, Geely purchased Volvo brand with a total amount of USD 1.5 Billion, enlarging its global influence gradually. On May 24th, Geely signed a binding key tem agreement with DRB-HICOM Group in Malaysia. Geely will purchase 49.9% shares of Proton Holding and 51% shares of luxury racing car brand Lotus Group from DRB. Therefore, Geely Group will become Proton’s exclusive foreign cooperative partner.

The two parties will conduct negotiations on the basis of key items, and the final agreement is expected to be signed before middle of July, 2017. After the agreement is permitted by regulatory departments, the two sides will conduct deepening and broad cooperation to fully coordinate technical resources and advantages from all parties, supporting and promoting the transformation of Proton and Lotus Auto.

Established by the former Malaysia Vice President Mahathir Mohamad, Proton Holding is the national auto brand in Malaysia, enjoying high reputation in Southeast Asian Market. But its products’ quality has decreased in recently years. Currently, Proton has two factories in Malaysia with the only total annual capacity of 400,000 units, far below the maximum capacity. As early as in 2007, many foreign auto companies were trying to purchase and control Proton, encountering Malaysia government’s refusal. Last year, Proton obtained a government relief fund amounting to USD 338.2m, trying to make profits and find foreign partners.

Geely will march into Southeastern Asia market after the purchase of Proton. It’s known that Geely will help Proton to rebuild its brand image by giving investments and technological supports, therefore lifting up its sales volume in Malaysia, UK, India and Australia.