Najib Reaffirms Decision In Selling 49.9% of PROTON To GEELY

Former Prime Minister Dato’ Sri Najib Razak's recent Facebook post reaffirmed the previous Barisan Nasional-led government's decision to sell a significant portion of Proton Holdings Bhd (Proton) to China's Zhejiang Geely Holding Group Co. Ltd (Geely) as a wise move.

The former premier emphasised Proton's resilience in the face of Tun Dr Mahathir Mohamad's criticism following the 2017 deal. He also emphasised that as a result of his decision, Proton experienced five consecutive years of increased sales, transforming the company from one that was experiencing declining sales and financial difficulties, including difficulties in paying suppliers.

The collaboration with Geely not only saved Proton from a RM1 billion annual loss, but also revitalised its declining export sales. Geely would also invest an additional US$10 billion (RM46 billion) in this partnership to develop Tanjung Malim as the largest automotive city in the ASEAN region.

Geely, which owns Volvo, acquired a 49.9% stake in Proton in 2017, allowing Proton to leverage its extensive platforms and powertrains. The agreement also facilitated Proton's entry into existing Chinese automobile markets and transformed Proton into Geely's right-hand arm for supplies in Southeast Asia and other right-hand drive markets.

This collaboration also resulted in the establishment of Proton's New Energy Division, PRO-NET, which would primarily focus on promoting electric vehicles under the Geely umbrella in Malaysia and Thailand, beginning with smart's #1.

Despite Dr Mahathir's criticism, Proton, which had been rapidly losing market share, has now completed the year with 154,611 units sold, 9.3% more than the 141,432 units sold in 2022.

Furthermore, thanks to Najib, we now have vehicles that are not only competitive globally, but also provide Malaysians with the most recent technological advancements at a reasonable price point. 

Source: New Straits Times