Only PSA Groupe remains poised to assist floundering Malaysian marque.
Speaking to the South China Morning Post, the president of Chinese automotive powerhouse Geely confirmed that the company has withdrawn its bid to take a controlling state in floundering Malaysian national carmaker Proton.
Geely is on a high right now, after announcing on Wednesday a 126% increase in profit last year, resting at a 5.1-billion yuan (or just under $1bil). The Chinese withdrawal from the Proton partnership comes as a surprise, as speculators and industry pundits have largely seen Geely as the favourite suitor among the two.
Geely president An Conghui did not elaborate on why the company withdrew its bid, though chairman Li Shufu intimated in previous reports that Proton was somewhat undecided on what it wanted out of a strategic partner. Proton’s biggest draw for a tie-up has been the use of its manufacturing plant in Tanjung Malim, an hour north of the Malaysian capital of Kuala Lumpur, that boasts an annual production capacity of 150,000 vehicles annually despite much more modest sales figures.
With Geely’s withdrawal, the only remaining bidder looking to shake hands with the Malaysian manufacturer is France’s PSA Groupe, which itself is hot off the purchase of the Opel & Vauxhall brands from General Motors. A member of the controlling Peugeot family said that the purchases from GM will help it reach critical mass, with the company set on world (sales) domination. It’s likely that PSA is keen on Proton due to the tariff-free exports that they would enjoy from assembling their cars in Malaysia, owing to ASEAN trade agreements.
Proton declined to comment on this development.
