PSA Looks Set To Buy Lotus And Proton

As reported by TMR last month, China’s Geely (parent company of Volvo) was interested in purchasing Malaysian brand Proton (which in turn owns British sports car specialist Lotus Cars).

However the South China Morning Post reports Geely President An Conghui has confirmed the company is walking away from that plan.

Geely has just announced a record profit in 2016 of $US739-million and is set to launch its new SUV brand Lynk & Co (a co-development with Volvo) as it increases representation in South-East Asia – and its target of becoming a top-ten global automotive brand.

The Proton deal includes the Malaysian company’s Tanjung Malim assembly plant which has an annual production capacity of 1540,000 vehicles. Proton is seeking a strategic partner on the back of declining sales and financial performance – the Malaysian Government advanced the company $US384.9-million last year.

Proton