Geely to Shift Some Vehicle Production to Proton Plant in Malaysia

China’s Zhejiang Geely Holding Group Co., which is in the process of acquiring a 40.9% stake in Malaysian carmaker Proton Holdings Bhd., plans to make Malaysia its manufacturing hub for Geely right-hand-drive cars after the deal is completed.

The partners announced the plan last weekend during an official signing ceremony. The deal, which was announced last month, is expected to be completed within three months.

IIn addition to buying a minority stake in Proton (current owner DRB-Hicom Bhd. will retain a 50.1%), Geely is acquiring 51% of Proton’s Group Lotus subsidiary. The remaining 49% of the British sports car company will be held by Etika Automotive, a company controlled by DRB-Hicom founder Syed Mokhtar Al-Bukhary.

Geely has promised to support Proton and Lotus in research, product development, manufacturing and marketing. This could include building Lotus sports cars in China in the future as part of a plan to increase the iconic marque’s global presence, according to Geely founder Li Shufu.