KUALA LUMPUR: Proton Holdings now has a fair chance of not only making a comeback as leading automobile manufacturer in Malaysia but it will also be able to expand globally with Chinesee automaker Geely.
DRB-HICOM Group Managing Director Datuk Seri Syed Faisal Albar said Geely was the best partner for Proton, given its position as a global business group.
He said the company had shown its boldness and capability which could be seen in them achieving a global revenue of some US$30 billion and a Fortune 500 company status in 30 years.
In an interview with the New Straits Times, Syed Faisal asserted that Proton was still the national car and the sale of 49.9 per cent equity in the automotive manufacturer did not equate it to being a sell-out.
“We need to be clear that Proton is a private entity, and has been such since DRB-HICOM acquired the nation's first carmaker in 2012.
“The acquisition from Khazanah Nasional was an outright purchase, and the ‘golden share’ of the government was removed then.
“Yes, Proton is the first national car brand by virtue of it being the first car marque that Malaysia produced back in 1985.
“By the same token, DRB-HICOM retaining 50.1 per cent equity means that we still own the majority stake and the brand remains a national brand, a national car,” he explained.
Zhejiang Geely Holding Group, which also owns Volvo, on Wednesday signed an agreement to acquire a 49.9 per cent stake in Proton Holdings Bhd.
Geely produces automobiles under five key brands via three subsidiary companies, including Geely Auto Group (Geely Auto and LYNK & CO), Volvo Cars Group (Volvo Car and Polestar) , as well as Geely Commercial Vehicles Company.
On Thursday, former prime minister and former Proton chairman Tun Dr Mahathir Mohamad lamented that the national automaker was sold to foreigners.
He said the sale of Proton's stake by DRB-Hicom Bhd to the Chinese carmaker was probably the beginning of an "inexorable process".
Read the full interview with Syed Faisal in the New Sunday Times tomorrow.