The economies of scale factor which has eluded national carmaker Proton Holdings Bhd for a long time, can be achieved via its newly-signed strategic partnership agreement with China's Geely, a research institute director said today.
Dr Irwan Shah Zainal Abidin, Director of the Asian Institute of Banking and Finance at Universiti Utara Malaysia, said with the deal, Malaysians can also expect a gradual reduction in car prices in the future, a key objective of the National Automotive Policy (NAP).
"I see the partnership as a huge opportunity for Geely through Proton to access the 600-million ASEAN market. For Proton, it is a chance to penetrate the vast China market," he told Bernama.
He said the transformation of Volvo in less than five years after being acquired by the Chinese carmaker would be replicated at Proton as well, because Geely is a highly market-driven entity.
The company's track record shows it has turned around several ailing car manufacturers. In acquiring a 49.9 per cent stake in Proton, its founder, Li Shufu, must surely be confident of putting the ailing Malaysian company back on the right track.
"Li Shufu is an industrialist and entrepreneur who won't just buy something for the sake of acquisition. He must have studied the risks and viability, both over the short and long terms, and at Proton's production capacity of 400,000 cars that is currently under-utilised.
"Geely has just set up a plant at London Taxi, specifically to work on electric and hybrid car models, and this will have a positive impact on future production at Proton," Irwan Shah said.
DRB-Hicom Group Managing Director Datuk Seri Syed Faisal Albar said last week that as part of the agreement, Geely would inject a sports utility vehicle (SUV) platform into Proton and offer its best-selling SUV.
This enables Proton to enter into a new segment that had grown tremendously over the past years.
Syed Faisal also said Geely made the best partner for Proton as the former had agreed to retain the carmaker's nameplate and aimed to reclaim the number one spot in the country.
Irwan Shah said some Malaysians, sceptical of the tie-up, were those who still believed in the old ways of of the automotive industry and oblivious to changes in its business models and trends.
This latest partnership is just one of many to have taken place worldwide as the industry's bottom line is the production of quality cars that can compete in the global and open market.
-- BERNAMA
Bernama
Sun Jun 04 2017
![With Geely, Proton can achieve economies of scale With Geely, Proton can achieve economies of scale](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2017-05/61495716308_LiShufu.jpg)
In acquiring a 49.9 per cent stake in Proton, its founder, Li Shufu (pix), must surely be confident of putting the ailing Malaysian company back on the right track. - REUTERS / File
AWANI Ringkas: Syor ambil guru Bahasa Inggeris dari Singapura jadi tumpuan
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
![Suspek kes kematian Nur Farah Kartini direman tujuh hari Suspek kes kematian Nur Farah Kartini direman tujuh hari](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51721098519_suspekbunuhNurFar.jpg)
Suspek kes kematian Nur Farah Kartini direman tujuh hari
Perintah reman terhadap suspek lelaki berusia 26 tahun itu dikeluarkan Hakim Nurul Mardhiah Mohammed Redza.
KPM teliti cadangan sukarelawan Guru Bahasa Inggeris dari Singapura
Sukarelawan berbentuk hubungan diplomasi yang dibiayai kerajaan Singapura bagi bantu tingkatkan penguasaan bahasa Inggeris murid di kawasan miskin bandar dan luar bandar, kata Menteri Pendidikan.
#AWANInews #SisiTVParlimen
#AWANInews #SisiTVParlimen
Niaga AWANI: [Pasca IPO] Apa hala tuju Johor Plantations Group?
Johor Plantations Group (JPG) memperoleh RM735 juta daripada penyenaraiannya di pasaran utama Bursa Malaysia sejak 9 Julai lalu. Bagaimanakah pelan JPG untuk terus berdaya saing pada masa hadapan?
Impact of cloud complexity on cybersecurity risk and AI's role in this mix
Organizations who are adopting multi-cloud or hybrid cloud environments are having to navigate new complexities that emerge as they expand on cloud. As these cloud environments lead to the expansion of attack surfaces, a global survey conducted by Gigamon found that 93% of IT and security leaders predict cloud security attacks will increase this year.
[Data & Statistik] Prestasi Bursa Malaysia setakat 16 Julai 2024
Jumlah dagangan meningkat kepada 5.36 bilion unit bernilai RM3.95 bilion daripada 4.58 bilion unit bernilai RM3.72 bilion pada Jumaat.
[Data & Statistik] Kedudukan MYR berbanding SGD setakat 16 Julai 2024
Niaga AWANI bawakan prestasi terkini prestasi MYR berbanding SGD.
[Data & Statistik] Prestasi ringgit setakat 16 Julai 2024
Ketua Ahli Ekonomi Bank Muamalat Malaysia Bhd Dr Mohd Afzanizam Abdul Rashid berkata walaupun ringgit merosot, kontrak niaga hadapan Dana Fed menunjukkan bahawa penurunan kadar faedah mungkin akan berlaku pada September depan.
![Sekurang-kurangnya 4 maut, insiden tembakan di masjid di Oman Sekurang-kurangnya 4 maut, insiden tembakan di masjid di Oman](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/41721096727_RoyalOmanPolice.jpg)
Sekurang-kurangnya 4 maut, insiden tembakan di masjid di Oman
Beberapa orang turut cedera akibat terkena tembakan di sekitar masjid di Wadi al-Kabir, Muscat.
![Penjara menanti pesalah MH17 jika keluar dari Rusia - Pendakwa raya Penjara menanti pesalah MH17 jika keluar dari Rusia - Pendakwa raya](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2022-03/61647267418_Reconstructionofth.jpg)
Penjara menanti pesalah MH17 jika keluar dari Rusia - Pendakwa raya
Menurut Digna van Boetzelaer, kerajaan Belanda tidak pernah meminta ekstradisi mereka kerana Rusia tidak mengekstradisi rakyatnya sendiri.