Lotus cars may be built in China, Geely owner says
Li Shufu said his Zhejiang Geely Holding Group will consider producing Lotus sports cars in China after purchasing stakes in Malaysian carmaker Proton Holdings and Lotus, Proton's U.K. unit.
Geely signed a final deal to acquire 49.9 percent of Proton and 51 percent of Lotus Cars from Malaysia's DRB-Hicom and expects to complete the transaction in three months, the Chinese automaker said in a statement in Kuala Lumpur on Friday.
Geely said it will recruit a management team from a pool of global candidates to ensure Proton’s smooth operation.
Geely owner Li said the priority will be to make Proton and Lotus profitable and to sustain growth while embracing new technology trends such as electrification, light-weighting and artificial intelligence.
"We hope to help Lotus penetrate the global market," Li said.
Geely will buy its Proton stake for $107 million (720 million yuan), said DRB-HICOM Managing Director Syed Faisal Albar.
Proton's stake in Lotus will be sold for $127 million to Geely and a Malaysian firm, he said.
Proton, founded in 1983 by former Malaysian Prime Minister Mahathir Mohamad, rebadges cars from foreign manufacturers to sell in the local market.
It has struggled in recent years and last year received $350 million in government aid on the condition that it seeks a foreign partner.
Geely said it will recruit a management team from a pool of global candidates to ensure Proton’s smooth operation.
Geely owner Li said the priority will be to make Proton and Lotus profitable and to sustain growth while embracing new technology trends such as electrification, light-weighting and artificial intelligence.
"We hope to help Lotus penetrate the global market," Li said.
Geely will buy its Proton stake for $107 million (720 million yuan), said DRB-HICOM Managing Director Syed Faisal Albar.
Proton's stake in Lotus will be sold for $127 million to Geely and a Malaysian firm, he said.
Proton, founded in 1983 by former Malaysian Prime Minister Mahathir Mohamad, rebadges cars from foreign manufacturers to sell in the local market.
It has struggled in recent years and last year received $350 million in government aid on the condition that it seeks a foreign partner.
