Proton and Lotus enter into a Joint Venture with Goldstar of China

Looks like Proton and its subsidiary Lotus have signed a Joint Venture agreement with Goldstar Heavy Industrial Co Ltd of China. According to the press release, a new JV company will be formed for the purpose of R & D activities that will eventually produce and sell Lotus branded passenger cars in China.



It is about time that Proton entered China. Prior to this there was an arrangement with Proton selling CKD kits to China Youngman which sells them under the Europestar brand. That arrangement, whilst still ongoing has not actually filled up Proton's or Lotus' coffers much. One of the terms of the sale is 150,000 units of CKD kits over a period of six years. Or 25,000 units per year since 2008. I suppose that arrangement has come to an end in some ways. I also read that Youngman have re-engineered the cars with the help of Lotus Engineering into something you see pictured below - the Youngman-Lotus L5. 


I guessed as much that the Lotus name will be used for China. Lotus will dilute its brand name a little to cash in on the massive sales market called China. I earlier pointed out that they should have done this to Malaysia too. Why the heck not as the Lotus name isn't all that fanciful here anyway.

I think there could be a shakeup coming on inside Proton. Chairman of Proton Tun Mahathir, whose past credentials include being Prime Minister of Malaysia, was present at this event and I believe some changes coming especially if you factor in how the grand old man thinks of how silly the current Malaysian government is. As a friend of mine in Proton likes to say. Sit back and eat popcorn and watch things happen.

PRESS RELEASE

KUALA LUMPUR, 17 April 2015 – PROTON Holdings Berhad (“PROTON”) the ultimate holding company of Lotus Group, announced that it has signed a Joint Venture (“JV”) Agreement with Lotus Group International Limited, United Kingdom (“Lotus Group”) and Goldstar Heavy Industrial Co. Ltd. (“Goldstar”) for a possible business expansion of Lotus cars in the People's Republic of China. The collaboration seeks to accelerate the development of Lotus cars in the premium sports segment in China, leveraging on the incentives offered by the Fujian Provincial Government. Both PROTON and Lotus Group are subsidiaries of DRB-HICOM Berhad.

Signing on behalf of PROTON was the Honourable Tun Dr Mahathir Mohamad, Chairman of PROTON and former Prime Minister of Malaysia and witnessed by Dato’ Abdul Harith Abdullah, Chief Executive Officer of PROTON. Signing on behalf of Lotus Group International Limited, United Kingdom was Mr Jean-Marc Gales, Chief Executive Officer and witnessed by Mr Rohime Shafie, Director of Lotus Group and Chief Financial Officer of PROTON; and signing on behalf of Goldstar was Mr Zheng Qianghui, Chairman of Goldstar and witnessed by Mr Zhai Wenliang, President of Goldstar.

Dato’ Abdul Harith Abdullah said “The JV Agreement will see the establishment of a new JV Company for the purpose of undertaking research and development (R&D) activities in the use of efficient and advanced technology. The JV Company will then produce and sell Lotus branded passenger cars as well as provide after sales services in connection with its products in the People’s Republic of China.

“The automotive market in China is the single largest in the world today, and is still growing, therefore it is only natural for an established iconic company like Lotus to embark upon the possibility of expansion, venture into the market and seek the available opportunities, in light of the keen interest shown by the many enquiries received thus far. It is very difficult to ignore the market and Lotus will fill the gap in providing a lifestyle alternative to the growing demands of the affluent and market conscious local community,” Dato' Harith added.

"On April 7, 2015, Lotus announced 55% increase in car sales for its 2014/15 financial year, compared to the previous year with 36 new dealers appointed during the period 2014/15. And China has appeared to be the top key growth market for Lotus exports and is expected to grow at a very fast rate. Lotus Group is excited about the opportunities of this new Joint Venture," Jean-Marc Gales commented further.

Lotus will continue to manufacture its current range of Lotus sports cars (Evora, Exige and Elise) exclusively at its HQ in Hethel, England.

- See more at: http://corporate.proton.com/en/News-Events/2015/April/Proton%20Lotus%20Group%20and%20Goldstar%20signed%20JV%20agreement.aspx#sthash.B4d2uSFD.dpuf