Latest partnership will have positive impact on Proton
Published on: Thursday, August 17, 2017
Kuala Lumpur: Proton Holdings Bhd's decision to select China's Geely Automobile Holdings Ltd (Geely) as its foreign strategic partner will not only be highly profitable but compatible with the national car manufacturer's strategy, operations, finances and work culture, said Deputy International Trade and Industry Minister, Datuk Chua Tee Yong."The strategic partnership will also have a positive impact on the nation's economy.""It will provide a platform for both parties to share resources in developing new products which incorporates technological elements and research and development (R&D) activities," he said in reply to a question from Senator Datuk Yahaya Mat Ghani in the Dewan Negara here yesterday.
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The senator earlier asked about Proton's production performance, the domestic market, the impact of the partnership on the economy and the job security for the company's workforce.Chua also said the partnership would help expand the market for Proton cars in Geely's existing markets in China, ASEAN, the Middle East and North Africa which would push sales up to 500,000 units per year.From January to July 2017, the national car manufacturer sold 45,347 units locally and exported 157 units.Last year, Proton sold 72,621 cars, out of which 99 per cent were sold locally and the remaining 330 were exported.
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Chua added that the partnership would also see both parties working together cooperating on moving Proton's manufacturing operations to the Tanjung Malim plant within five years.The plant also has the potential to assemble Volvo cars, as well as, Geely's cars models.
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The minister pointed out that the benefits from the partnership was not only limited to Proton, but had a widespread effect on the automotive industry's ecosystem which included increasing Proton's workforce to 20,000 within 10 years.Chua said Proton staff would also have the opportunity to participate in human capital development programmes involving Geely Group's research and development design centres and factories located in Shanghai in China, Gothenburg (Sweden), Coventry (United Kingdom), Barcelona (Spain) and Los Angeles (the United States.)Stay up-to-date by following Daily Express’s Telegram channel.
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