Munzir HakimiTable of Contents
fresh Insights ahead
Lotus and Geely Partnership
Lotus, the iconic British sports car manufacturer, is set to be acquired by China’s Geely.This move comes as part of a broader strategy where Geely will also purchase a 49.9% stake in Malaysian automaker Proton, which currently owns Lotus. With this acquisition, Geely will hold a 51% stake in Lotus.
Jean-Marc Gales, who has been leading Lotus since 2014, aims to steer the company back to profitability after years of financial struggles. Despite facing challenges such as being barred from the U.S. market due to safety regulation issues in 2015, Lotus made its return last summer.
Proton’s Market Strategy
The acquisition of Proton is crucial for Geely as it seeks to penetrate Southeast Asian markets using Volvo’s advanced technologies. James Chao from IHS Markit Automotive noted that leveraging Volvo’s technology could help Proton regain its competitive edge.
Proton was established in 1983 but has seen its market position decline significantly over the years. The Malaysian government recently provided financial support with conditions for finding a foreign partner—leading them to collaborate with Geely.
Final Thoughts
A New Era
The partnership between Lotus and Geely marks an exciting chapter for both companies as they navigate new markets and technologies together.
