Home News Featured News Geely bows out of Proton talks

Geely bows out of Proton talks

Author

Date

Category

- Advertisement -

An apparently soured Geely Automobile Holdings said it pulled out of the talks for 51% share in Malaysia’s ailing car maker, Proton.

The confirmation of the pullout came from Hong Kong-based daily South China Morning Post or SCMP, which said Geely’s president, An Conghui confirmed the pullout from the talks to the SCMP but did not give any specific reasons why.

Geely’s chairman Li Shufu had previously indicated the Malaysian firm had been uncertain about what it wanted from an overseas partner, in an interview with Bloomberg earlier this month.

Now the turf is left to the French automaker, the PSA Group, which is the second largest car manufacturer in Europe.

- Advertisement -

But how certain are the french in their bid?

The French are still hopeful they might be the new majority shareholders of Proton, though it was previously reported they were considering to pull out of the talks, having laid an eye on Indonesia’s potential in the Asean region.

Geely, the owner of the Swedish Volvo brand, was the favorite to acquire a controlling stake in Proton.

Proton owns the Lotus sports car marque and is looking for a strategic partner to assist in research and development as part of conditions it agreed to receive a loan of 1.5 billion ringgit ($384.9 million) from the Malaysian government last year.

The firm, once one of the Malaysia’s flagship companies, has been struggling with losing market share in Malaysia while failing to compete overseas.

The last time it recorded a better annual performance was in 2008, when a net profit of that year surged by 179 per cent to 866 million yuan from 2007, according to Reuters figures.

- Advertisement -

Kindhearted Chinatown resident draws praise for helping pedestrians cross the road without getting wet in the rain

A kindhearted Chinatown resident who helps pedestrians cross the road by holding an umbrella over them whenever it rains has won praise online. The resident, a housewife who lives with her husband and daughters, has been spotted repeatedly escorting pedestrians who do...

“Common sense has prevailed” – Dr Chee celebrates cancellation of Bukit Batok upgrading projects

Singapore Democratic Party (SDP) chief Chee Soon Juan has welcomed the news that some proposed upgrading projects at Bukit Batok SMC have been cancelled. Bukit Batok SMC has been close to Dr Chee's heart, ever since he first contested the ward in...

Infectious diseases expert Paul Tambyah set to hold Q&A session on COVID-19 vaccines

Infectious diseases expert Prof Paul Tambyah has called on members of the public to send in their burning questions about COVID-19 vaccines for an upcoming virtual Q&A session. A Professor of Medicine at the National University of Singapore (NUS) and Senior Consultant...