Geely upgrades contract with Proton to push international presence and tech

KUALA LUMPUR: Proton is probably one of the biggest names in the Malaysian automobile circuit when we speak about affordable cars. However, the company is looking to extend its services to other countries as well.

Geely, the Chinese automaker, has now agreed to extend its contract with Proton Malaysia (Proton Holdings Berhad) through which it would upgrade the company’s model lineup. Besides this, the Chinese automaker would even power Proton to take it beyond the boundaries of Malaysia. This would include getting the automaker to make its presence in the Chinese market and also some other international destinations.

According to a statement made by Zhejiang Geely Holding Group of China on last Saturday, the company would be getting Proton to work on the green-car technology and also the technologies on vehicle platform that it recently developed as a joint venture with Swedish Volvo Cars.

According to this extension of the contract, Proton Malaysia will be using the technologies from Geely to manufacture and sell cars on an international arena, with China being the first destination. One of the other countries would be Indonesia.

Mr. Li Shufu, who is the chief executive and founder of Geely, has said that this new agreement will take the relationship between the two companies to the next level. The contract signing ceremony was arranged in the headquarter of the Chinese automaker in Hangzhou.

The next step of this joint venture will see Proton Malaysia starting to study feasible ways to make an entry into the Chinese auto market. Once this is made possible. Geely would have its hand on all the spectrum of the automobile industry. Presently, it has Volvo as the premium sub-brand and Proton tapping the affordable entry-level segment. Geely itself manages the mid-market segment in China.

That said, with this contract, Geely hopes that it could make Proton enter right-hand-drive countries like Great Britain, Australia, and India. However, as of now, Proton would be focused on recovering all the destinations it has lost in the yesteryears.