Photo: Proton
The negotiations between Geely and Proton regarding the acquisition of the latter have ended without success.
Representatives of the Chinese company have announced they have retired from the discussion and will not submit a bid to purchase Proton. They have motivated the decision based on talks with the executives of the Malaysian brand, whom they accused of indecisiveness in their plans.
These claims come from Li Shufu, the chairman of Geely Motors, who was clear in his statement that he feels that Proton’s leaders “have not decided what they want.” Any potential investor will tell you that one of the worst things they can encounter with a possible business partner is uncertainty.
Every investment itself can be uncertain, and all are to some degree, but when things change from one day to another, the investor becomes discouraged to continue. As Autocar has learned from Geely’s representatives, a situation like the one described above was encountered by the Chinese in their interaction with Proton.
With the other potential bidder out of the way, the French at Groupe PSA have a clear road ahead if they decide to buy Proton. The move could help the parent company of Peugeot and Citroen to gain a brand that is recognized in the Asia-Pacific region, but it will also have to prepare to change everything it can to bring it back to profit.
At this point, we should note that Proton owns Lotus, which could be the biggest asset of the Malaysian company. The British brand has an engineering consultancy department that was the desired acquisition by many European brands, and that may be the reason why the French would want to buy the company altogether.
Interestingly, the representatives of the PSA Groupe have recently announced they have agreed to acquire GM’s European brand, comprised of the Opel and Vauxhall brands.
The decision could have affected the intention to buy Proton, but the conglomerate from the Hexagon could do it regardless. Expect to hear a final decision announced by the end of the summer.
These claims come from Li Shufu, the chairman of Geely Motors, who was clear in his statement that he feels that Proton’s leaders “have not decided what they want.” Any potential investor will tell you that one of the worst things they can encounter with a possible business partner is uncertainty.
Every investment itself can be uncertain, and all are to some degree, but when things change from one day to another, the investor becomes discouraged to continue. As Autocar has learned from Geely’s representatives, a situation like the one described above was encountered by the Chinese in their interaction with Proton.
With the other potential bidder out of the way, the French at Groupe PSA have a clear road ahead if they decide to buy Proton. The move could help the parent company of Peugeot and Citroen to gain a brand that is recognized in the Asia-Pacific region, but it will also have to prepare to change everything it can to bring it back to profit.
At this point, we should note that Proton owns Lotus, which could be the biggest asset of the Malaysian company. The British brand has an engineering consultancy department that was the desired acquisition by many European brands, and that may be the reason why the French would want to buy the company altogether.
Interestingly, the representatives of the PSA Groupe have recently announced they have agreed to acquire GM’s European brand, comprised of the Opel and Vauxhall brands.
The decision could have affected the intention to buy Proton, but the conglomerate from the Hexagon could do it regardless. Expect to hear a final decision announced by the end of the summer.
Google News