Proton leverages advanced automotive technology from Geely
KUALA LUMPUR: Zhejiang Geely Holdings group’s purchase of a stake in Proton Holdings Bhd proves very positive as the national automaker will now be able to harness cutting-edge automotive technology given the Chinese group’s acquisition of the owner of Mercedes Benz Daimler AG last month.
There is now the imminent prospect of sharing electric car technologies as Proton is now part of a potentially lucrative and technologically advanced automotive group.
This includes international brands such as Daimler, Mercedes Benz, Volvo cars and trucks, Lotus as well as London Taxi Cabs.
Geely bought Daimler as it strives to build electric cars to meet strict Chinese emission standards and produce energy efficient cars.
And what better way to increase efficiency and produce electric cars than by acquiring renowned car manufacturers who already do.
Geely firmly believes that modern technology will propel the group to become a tech giant on par with Google, Uber and set the stage for it to emerge as a technologically advanced automaker.
With such technologies, the Chinese company can get its money’s worth from other automakers.
So it is clear that the sincere desire to own such advanced automotive technologies led them to buy and own Mercedes Benz.
As for the takeover of Volvo by Geely in 2010, it is proof of Geely’s ability to raise the bar of the renowned Swedish car manufacturer but in difficulty.
After observing the evolution and development of Volvo as a car manufacturer from the early days, an automotive analyst noticed that modern Volvo cars have never looked so sexy, thanks to Geely’s contribution.
In such a context, the surprising question is why they also chose to acquire a 49.9% stake in Proton.
While other potential buyers may have missed it, Geely must have sensed the strategic importance and potential of acquiring the Malaysian national automaker.
They had to do their homework and they wouldn’t have gone blindly in a car deal.
Therefore, who are we to ask if a company that bought Swedish carmaker Volvo, bought shares in Mercedes Benz, and LEVC, the maker of London’s black taxis, because of their strategic importance, also has a similar confidence in Proton.
This only serves to strengthen Geely as an ambitious, professional and global automotive group with the foresight to acquire Proton with the firm belief that it will be able to generate good profits in the time to come.
Given their global presence and their success in turning around struggling auto giants, Malaysians shouldn’t be overly critical or negative about how the business operates to get the business back on track to profitability. .
Analysts say foreigners seem to trust Proton more than Malaysians themselves, which is why Geely should have a chance to prove himself with Proton.
The Proton plant in Tanjung Malim is currently under production.
Geely aims to increase production to 400,000 cars in 10 years to enter national, regional and global markets.
With this focused growth coupled with the evolution of the global automotive industry, it is crucial that Proton’s ecosystem and infrastructure, including vendors, support this business.
Otherwise, Proton will be left behind than is currently happening.
The under-production capacity of the Tanjung Malim factory is a pure waste of its resources and production capacity.
Therefore, it came as no surprise when Geely did the first thing after acquiring its stake in Proton, was to find the cause of the “waste”, even though they knew the plant had a huge potential.
A crucial precondition for Proton to reach a production capacity of 400,000 or even a million units is to have markets.
Although relatively new, Geely is not new to the marketing experience and new ideas.
It is clear to see how aggressive he is in the global auto industry as even Mercedes Benz and Daimler AG were surprised.
Geely knows exactly what he’s doing.
Bumiputera vendors, vendors as well as service center operators need to be aware of the intense competition in the global automotive industry.
It is imperative that they move to sales, service, parts, and spray painting (4S) centers in order to benefit from Geely’s efforts to create the infrastructure to deliver automotive components at low prices. competitive.
Along the way, these suppliers would benefit from increasing Proton’s manufacturing capacity to 400,000 cars and regional development, as the potential is clearly there.
Proton could very well benefit from a possible transfer of technological expertise from renowned car manufacturers in the Geely group such as Daimler and Volvo.
They should appreciate and support what the Chinese Geely is doing, which is to make Proton a successful global brand and put the national automaker back on the global network. – Bernama