The car industry is always on the move. If this year we have already caught the “shock” of seeing Opel being bought by the PSA group, after nearly 90 years under the tutelage of GM, the movements in the industry promise not to end here.
It is now up to the Chinese Geely, the same company that in 2010 acquired Volvo, to make the headlines. The Chinese company acquired 49.9% of Proton, while DRB-Hicom, which held the Malaysian brand in its entirety, keeps the remaining 50.1%.
Geely's interest in Proton is easy to understand given the brand's strong presence in Southeast Asian markets. Furthermore, Geely said that the agreement will allow for more synergies in research, development, production and market presence. Predictably, Proton will now have access to Geely platforms and powertrains, including the new CMA platform being co-developed with Volvo.
Why are we highlighting Proton when the title mentions the purchase of Lotus?
It was Proton that, in 1996, bought Lotus from Romano Artioli, at the time also owner of Bugatti, before this was transferred to Volkswagen.
Geely, in this agreement with DRB-Hicom, not only retained a stake in Proton, but became the majority shareholder in Lotus, with a share of 51%. The Malaysian brand is now looking for buyers for the remaining 49%.
The British brand appears to have stronger foundations, especially since the arrival of current president Jean-Marc Gales in 2014. The results are reflected in the profit-taking for the first time in its history at the end of last year. With Geely entering the scene, the hope arises that it will achieve with Lotus what it has achieved with Volvo.
Lotus was already in a transitional moment. Financially more stable, we are witnessing a regular evolution of its products – Elise, Exige and Evora – and it was already working on a 100% new successor to the veteran Elise, to be launched in 2020. Not forgetting the agreement with the also Chinese Goldstar Heavy Industrial, which will result in an SUV for the Chinese market at the beginning of the next decade.
How Geely's entry will affect plans underway is something we should know over the next few months.