Proton, Geely Expand Partnership to China

Malaysia’s Proton Holdings Bhd and its 49.9% owner, Zhejiang Geely Holding Group, are expanding their partnership with a new venture to make cars in China.

The partners will erect an assembly plant in China and collaborate on a line of electric and plug-in hybrid vehicles. Geely, which acquired its stake in Proton last September, will supply the technology for the electrified cars, The Nikkei reports.

The joint-venture factory will be Proton’s first outside Malaysia. The company also hopes that gaining access to Geely’s technology, quality control system and product development expertise will help the Proton brand bolster its export business.

The push into China is a huge breakthrough for Proton, which was created in 1983 as Malaysia’s first national carmaker. The company has struggled for a decade as its domestic market share skidded from about 70% in the late 1980s to roughly 15% today in the face of increasing competition from foreign brands.