Geely's Ability to Revive Volvo Captures Automakers Interest

KUALA LUMPUR, Aug 1 (Bernama) -- Zhejiang Geely Holding Group’s ability in reviving and transforming former Swedish Volvo Car Corporation (Volvo) into an exciting brand, has captured the interest of many global automakers, including Proton, said Second Finance Minister Johari Abdul Ghani. He described Geely as an “interesting company” in having the capacity to metamorphose a dying brand that people had almost forgotten about, into something worthy. “Once upon a time, the demand for Volvo was tremendous. But then (later), when we looked at Volvo, we lost interest, as all the designs were old. “Volvo was never on the minds of the younger generation until Geely bought over the brand. I just cannot believe now the technology Volvo has,” he told a luncheon talk with media practitioners here Monday. Geely acquired Volvo from American automaker, the Ford Motor Company, in 2010 for US$1.8 billion. It was reported that the Chinese carmaker sold a combined 1.3 million vehicles in 2016, with Volvo car sales reaching historic highs of 534,332 cars globally. Geely Auto Group sales grew over 50 per cent to reach 765,851 units in total, exceeding its targets. In January-May this year, the Group sold a combined 441,854 units, an increase of 89 per cent over the same period in 2016, meeting 37 per cent of its 2017 sales goal of one million units. On June 24, the Group and DRB-Hicom Bhd inked a definitive agreement which saw the latter acquiring a 49.9 per cent equity interest in the national car manufacturer for RM460.3 million. Johari said through this tie-up, Proton could reap tremendous benefits, including access to a massive Chinese market as well as great automotive technology transfer. He said advanced technology was a key factor for any automaker to remain successful and sustainable in the stiff and evolving market. “It’s the technology. Everybody can design. But, we, must get the platform right, technology right,” he added. Meanwhile, Second Minister of International Trade and Industry Ong Ka Chuan said the first Proton-Geely car would enter the market by end-2018 or early 2019. He said Proton and Geely were currently focusing on the establishment of a plant in Tanjung Malim, Perak, which is set to be the principal and pioneer automotive factory in the country to implement new manufacturing technology under the Fourth Industrial Revolution (Industry 4.0). “Geely will facilitate Proton in terms of technology and at the same time assemble its four-wheel drive model, an intelligent artificial car, and develop their right hand drive technology in Malaysia,” he said after an Engagement Session at Universiti Putra Malaysia here. -- BERNAMA