SHAH ALAM: DRB-HICOM Bhd is upbeat on Proton Holdings Bhd’s turnaround plan with the help of Zhejiang Geely Holding Group as it unveils the national carmaker’s new board structures and executive team.
DRB-HICOM group managing director Datuk Seri Syed Faisal Albar said Geely’s vehicle manufacturing expertise will help Proton to return to its heyday.
He expects Proton to break even in three years before making profit after five years of partnership with Geely.
"We have gone this far to find strategic partner and it has been on the card for a long time," he said at a briefing by DRB-HICOM and Geely yesterday.
Syed Faisal said the automotive historical landscape had changed since 2001, posing greater test for Proton to retain its leadership position.
"Strategic partnership is important for automotive company to assist them in terms of sharing technology and lowering production cost in an effort to produce better cars for relevant customers.
"Thus, it would help us in producing affordable cars for discerning customers," he added.
Proton will come out with “interesting products” for the Malaysian and Asean markets, he said.
"Many automotive companies have gone through this (partnership) cycle, which in turn would help in lowering overall cost and collectively result in better profitability.”
Geely board member, executive vice president and chief financial officer Daniel Donghui Li said the partnership would allow Geely to provide all necessary supports to Proton especially in the product development.
"We realised that the key of a company's success is product, product and product. Good products are important for any company to satisfy its customers in the market," he added.
Donghui said Geely would help Proton to boost its automotive business in Asean, leveraging on its global resources in research and development area.
"Within the first 10 weeks, we will have detail plans including modifications, product planning, quality improvement, procurement and customers satisfaction," he said.
Syed Faisal said it would take between two and three years to introduce new model as it involves huge investment from the initial stage of product design.
Meanwhile, newly-appointed Perusahaan Otomobil Nasional Sdn Bhd chief executive officer Dr. Li Chunrong said Geely has a large new products offerings for Proton.
"But we have to improve the customer's satisfaction level and get more potential good dealers," he added.
Li said Proton's main objective is to improve its sales and reduce losses with the introduction of good products.
"We develop new products for customers' satisfaction, following what Malaysian customers want. Thus, our products can be tailored to their requirements," he said.
Li will become PONSB’s chief executive from October 1, following the departure of Datuk Ahmad Fuaad Kenali on September 30.
Current deputy CEO Datuk Radzaif Mohamed will support Li.
Syed Faisal remains as chairman of Proton. He is joined on the board by Shaharul Farez Hassan and Amalanathan Thomas as nominees from DRB-HICOM.
Geely nominated Donghui and Feng Qing Feng as their nominees to the Proton board.
ends