Geely acquires stake in Proton, Lotus

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By: Richard Aucock –

   The ongoing struggle of under-pressure Malaysian car firm Proton may at last be over as Geely Holding agrees to buy a stake in the firm from current owners DRB-Hicom. In doing so, it’s outbid PSA Peugeot-Citroen, in a deal following the suspension of the group’s shares on the Kuala Lumpur stock exchange.

  It’s an exciting deal for car enthusiasts for one key reason – Proton owns Lotus Cars, a brand that itself has been struggling to emerge from the ruinous Dany Bahar era. Geely’s now completed a full takeover of Lotus. With the presumed cash injection that will come from being part of the Chinese giant, Lotus may at last become a major sports car player once again.

After all, just look at what Geely stewardship has done for another famous brand it controls: Volvo…

The initial focus is expected to be on Proton, though. The value brand has declined significantly in recent years and insiders say a priority will be on re-establishing its international presence. Core markets here, reports Automotive News, are the right-hand drive regions of Malaysia, India, Australia – and, of course, the UK.
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