Geely Completes Proton, Lotus Acquisitions

China’s Zhejiang Geely Holding Group Co. has completed the purchase of 49.9% of Malaysia’s Proton Holdings Bhd. and 51% of its Group Lotus unit in the U.K.

Under the deal, which was announced in May, DRB-Hicom Bhd retains a 50.1% share of Proton. Etika Automotive, a local automotive distributor controlled by DRB-Hicom founder Syed Mokhtar Al-Bukhary, acquired the remaining 49% of Lotus.

Li Chunrong, who had been executive vice president for Dongfeng Honda Automobile Co.’s engine operations, has been appointed to head Proton’s manufacturing unit. A 30-year industry veteran, Chunrong also held executive positions with Honda and Kia.

Former Volkswagen Group executive Winfried Vahland is one of three non-Malaysian automotive experts appointed to Proton’s board of directors. Dato' Sri Syed Faisal Albar and Mohd Radzaif Mohamed will continue in their roles as president and vice CEO of Proton Holdings.

Jean-Marc Gales will continue to head Lotus. But several Geely executives have been appointed to the U.K.-based company’s board. Geely vows to support Lotus and Proton in terms of research, product development, manufacturing and marketing. This includes developing Lotus into a “globally competitive brand” and leader in the sports car market.

Geely’s Volvo Car unit is evaluating how to best to apply Lotus’ engineering expertise to its future vehicles. Initial projects could include uprated suspensions and improving overall vehicle dynamics to Volvo’s Polestar performance unit and select mainstream sedans and crossover models.