Geely to nominate CEO for Proton’s manufacturing arm

China’s Zhejiang Geely Holding Group (Geely) will be nominating a "suitable" candidate for the manufacturing arm of national carmaker Proton, Perusahaan Otomobil Nasional Sdn Bhd (PONSB).

DRB-Hicom, which holds a 50.1 percent stake in Proton Group, said that this is part of its deal with Geely, and outlined that the China group would "lend expertise in the area of production, manufacturing, operations and marketing; namely in PONSB."

“PONSB is the bulk of the operations of Proton Group, and thus it is critical that we have the right person for the job. An announcement shall be made in due course," DRB-Hicom group managing director Syed Faisal Albar said.

The statement said PONSB deputy CEO Radzaif Mohamed will maintain his position to ensure smooth integration.

PONSB is one of three key Proton entities under Proton Group. It is in charge of production, operations, manufacturing and marketing.

The other two key Proton Group companies are holding arm Proton Holding Bhd (PHB), and distribution arm Proton Edar Sdn Bhd, which is a subsidiary of PHB.

Previously, speculation was rife that Dongfeng Honda Engine Co deputy general manager Li Chunrong, who joined Geely to oversee operations in Proton, would be appointed as Proton CEO.

While neither Geely nor DRB-Hicom confirmed or denied this, the latter issued a statement saying the two were still finalising the details of the China group’s acquisition of Proton.

In May, DRB-Hicom sold a 49.9 percent stake in Proton Holdings Bhd to Geely. In turn, Geely would buy over British sports car maker Lotus from Proton. 

Proton Holdings is been bleeding for years and was affecting the bottomline of DRB-Hicom - a government-linked company controlled by tycoon Syed Mokhtar Al-Bukhary.

Critics had complained that the move, which was sought by Putrajaya, had essentially ceded the national carmaker to a foreign firm.  - Mkini