Zhejiang Geely Holding Group, the Chinese auto maker that owns Volvo Cars, is readying a bid for a majority stake in Malaysian car maker Proton.
Although full details of Geely’s bid are yet to be revealed, it is believed part of the offer to Proton’s current owner DRB-Hicom will include access to Geely’s latest vehicle technologies to help boost the profile of struggling Proton, Reuters reports.
In return, Geely would gain access to a broad selection of right-hand drive markets that it currently misses out on like Australia, the United Kingdom, India, Malaysia and possibly New Zealand which would represent sales of almost 8 million vehicles per year.
France’s PSA Group, which makes Peugeot and Citroën cars, is also said to be readying a bid.
The bidding war comes as sales at Proton, which also owns British sports- and racing-car brand Lotus, continue to decline in Australia.
The latest VFACTS figures show that Proton sold two units in January 2017 compared to 20 units in January 2016, representing a 90% decline in sales year on year
Proton has said it will have engines that meet tougher Euro 5 emissions standard by late this year – a move necessary to kickstart its sales in Australia, according to Wheelsmag.
Proton owner DRB-Hicom said earlier this month it expects to pick a foreign strategic partner for the unit in the first half of the year.
DRB-Hicom bought the Proton stake from Malaysia’s sovereign-wealth fund, Khazanah Nasional Bhd, for about $412 million in 2012.
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