MALACCA: China’s Geely Automobile Holdings, owner of Swedish carmaker Volvo Cars Corp, has been identified as one of the global automotive companies that could end up as Proton Holdings Bhd’s strategic partner.
Proton chief executive officer Datuk Ahmad Fuaad Kenali disclosed that Geely was one of the few original equipment manufacturers (OEMs) that had expressed an interest to collaborate with it.
The national carmaker had issued a Request for Proposal (RFP) to Geely and several other OEMs on the prospect of being its long-term partner, he said.
Proton has been given a year by the government to find a strategic partner as part of the terms for a US$1.5 billion (RM6 billion) soft loan announced in April .
“We have issued an RFP to Geely. The company has yet to respond,” he said at the media test drive of the new Proton Perdana, here, on Monday.
This was the first time a potential foreign partner for Proton was publicly named, although Fuaad and other senior Proton or parent DRB-HICOM Bhd officials previously said the carmaker had attracted interest from several big players.
French carmakers Groupe PSA and Renault SA were also among OEMs rumoured to be keen to partner Proton.
The national carmaker has worked with Honda Motor Co to produce the new Perdana executive sedan using an old Accord platform and with Suzuki Motor Corp on a multi-purpose vehicle based on the Japanese group’s Ertiga model.
Instead of mere product collaboration, Proton needs a foreign partner that could commit capital injection, research and development and technology transfer over the long term.
Fuaad said Proton was looking for a partner that could, among others, help it lower production cost without compromising on quality, given its low economic volume.
“We don’t have the economies of scale,” he said, adding that a successful talk could lead to the strategic partner owning a major stake in Proton.
He said Proton could leverage OEMs such as Geely, which had low-cost base and technology.
Geely, which bought Volvo from Ford Motor Co in 2010, is among the top 10 carmakers in China. It has also owned British taxi manufacturer The London Taxi Co since 2012.
Geely saw its sales grow 11 per cent to 280,300 units in the first six months of this year. Last month, its sales rose 41 per cent year-on-year to 46,500 units.
Meanwhile, Fuaad said Proton was reviewing its parts pricing and after-sales network as it sought to improve products and services, making them more affordable and accessible to its customers.
The company’s branches in high density areas would be open on Sundays, he said, noting that service personnel would also be increased.
Details of the review would be announced soon, he added.