While Geely (the Zhejiang Geely Holding Group) today has design studios in Europe and Asia with world-class designers who create original styling for the group’s products (which include Proton), there was a time in the early days when Geely’s cars were essentially adaptations of models by other manufacturers. Some may call it ‘cloning’ or outright copying but it depends on the way and the circumstances one manufacturer uses the design of another company for its own product.
In the case of Geely, originally established as a refrigerator maker in 1986, the first car produced by the company called the Haoqing (HQ) in 1998 was adapted from a Daihatsu Charade (the G100 generation). However, it was permitted by FAW Tianjin, which was Daihatsu’s partner in China and had itself adapted the basic Charade design. Geely incorporated a Mercedes-like front end and people who went to China and saw the HQ would often tell their friends about a ‘Mercedes hatchback’ which they saw there!
Geely’s first car – the Haoqing (HQ)
Ambitions to be world-class manufacturer
However, Geely also aspired to become a global player and in time, it developed its own capabilities in all aspects of automobile design and development. It recruited experienced designers, with Peter Horbury leading them. Horbury was originally design head at Volvo and was responsible for ‘throwing the box’ out of the Swedish cars and giving them curves and sleek lines suited to the 21st century.
Geely’s founder, Li ShuFu, has been an ambitious man all his life, and it shows in all that he has done, especially during the past 12 years. The Geely Group has a large number of brands in its portfolio and covers virtually every segment of the auto market almost to the peak. And he could well have also been thinking about the pinnacle too as Geely once came out with a concept model of what anyone would have mistaken for a Rolls-Royce model.
Rolls-Royce Phantom in 2009
Similar styling elements to a Rolls-Royce
It was the Geely Excellence (GE) which was displayed at the 2009 Shanghai Motor Show and as would be expected, the company refuted claims of copying a Rolls-Royce Phantom although there might be some elements that looked similar. Those elements would be the prominent vertical grille, large rectangular headlights and even a figurine on top of the grille, with the side view having a degree of similarity as well.
Meanwhile, Geely suggested that if the 5.4-metre long limousine was to be produced and offered for sale with a proposed name of ‘YingLun’, it might cost around £30,000 (around RM170,000) – about an eighth the price of a Phantom. Apart from the majestic proportions, the interior was as the saying goes, ‘fit for a king’ and indeed, it would be only the king alone as the concept model had only one seat in the back (a throne?). The single seat could have been also because the body was narrow (about 1800 mm) compared to a Phantom which was 1990 mm wide. In the front were seats for the driver and one more person, perhaps an assistant or a bodyguard.
Not considered ‘flattery’
Like every Rolls-Royce, the GE was also luxuriously appointed with wood, leather and wool, and equipped with a privacy partition, massage seat, a star-studded ceiling and a wine cabinet. The engine proposed was said to be a 3.5-litre V6.
The Rolls-Royce people did not consider that, in this case, ‘imitation is the sincerest form of flattery’ and were certainly unhappy that the GE was unveiled near its own Phantom at the motorshow. With the notable design elements protected by trademark registration, the British carmaker could have taken legal action, as the media speculated at that time.
Legal action was not taken
However, Hal Serudin, Corporate Communications Manager at Rolls-Royce Asia-Pacific, who was there in 2009, said that there was no legal action. “I remember that event well and one of my colleagues said ‘We are certainly not flattered by this’. Anyway, as you recall, they also mentioned a price for the car which would have been targeted at a segment of customers very different from those who buy a Rolls-Royce,” he told PISTON.MY.
2011 Geely Emgrand GE concept had no similarity to a Rolls-Royce.
There were different responses to Geely’s ‘re-invention of a classic’ and some regarded it as a very clear sign of copying. Geely took note and the GE evolved into the Emgrand GE in 2011 (shown above) with a massive chrome grille that had absolutely no visual connection to a Rolls-Royce. The concept model was shown at the 2010 Beijing Motor Show and had a plug-in hybrid powertrain with two seats behind.
While Proton has continued to buck the local industry trend with steady growth in 2020, its export activities have also seen some momentum upwards. This is in spite of the extremely challenging conditions brought on by the COVID-19 pandemic that have impacted the auto industry. The carmaker’s exports have grown 10.6% so far this year and it is looking forward to selling even more vehicles outside Malaysia in 2021.
An unprecedented launch schedule has been planned with as many as 5 market introductions to take place in the coming weeks. One of these events will be the export market debut of the Proton X50 in Brunei, and another two will see the start of local assembly and sales of Proton vehicles in Kenya.
Proton began exports of CKD packs to Kenya in August this year and the first cars will roll out of the assembly plant this month. Brunei will be the first overseas market to start selling the X50 SUV (below).nbn
“While local market leadership is one of our targets, it is equally vital for the Proton brand to build up its presence internationally, representing both the company and Malaysia. This was part of the 10-year plan that was devised at the beginning of our strategic partnership with Geely,” said Dato’ Sri Syed Faisal Albar, Chairman of Proton Holdings Berhad.
“However, parts of the export plans were affected by the COVID-19 pandemic as each country had different responses and restrictions. Still, thanks to our diligent work and the strong support of various government agencies, we are finally getting back on track,” he added.
Introduction of Exora and Saga in Egypt at the end of 2018.
Additionally, Proton importers in Bangladesh and Egypt will also be hosting virtual product launches for the latest Saga before 2020 ends. This will be followed by a similar launch in Nepal just as the year draws to a close.
History of Proton exports
In the early years of Proton’s existence, its focus was on the domestic market which took virtually every car it made. Export markets, though established, were not given great attention and even Mitsubishi Motors, its partner, suggested that it concentrate on developing its skills in making cars and about the business before embarking on overseas sales.
Nevertheless, Proton began exporting just one year after the first Saga went on sale in Malaysia. Its early targets were those which were ex-British colonies, like Malaysia, and where traffic went on the left side of the road like us. This would make it unnecessary to develop a lefthand drive variant so soon.
Proton Wiras have also been spotted in North Korea though there is no official mention of exports to North or South Korea, so they may have been brought in by a private importer.A Proton advertisement for the UK market in 1994 (left) and a display at the Sydney Motorshow in Australia in 2012.
The UK market was considered a market with great potential then, and it was hoped that the Malaysian origins of the Saga would appeal to the British who had lived in Malaysia in the pre-Merdeka period. The first model was introduced at the Birmingham Motorshow in 1988 and initially, Proton received some preferential taxation as it was a small volume brand entering the market. This allowed it to sell at attractive prices and it was well received. The growth in sales in the UK led to a subsidiary being established to handle import and marketing activities, and that market was at one stage, Proton’s biggest export market.
As the only Muslim country in the world to develop its own car and have an automotive brand, Protons from Malaysia were expected to be popular in other Muslim countries. In fact, the first export market was Bangladesh where the Saga first went on sale in 1986. Egypt has also been a strong market for Proton since it entered in 2004.
Chile was one of the early markets that Proton entered but stopped for 20 years before returning in 2016.
By 2001, Proton had appeared in over 50 countries around the world, some in significant numbers and some just a handful. It had tried to enter the US market in the late 1980s, appointing a business partner called Global Motors which created a unit known as ‘Proton America’ to get the necessary approvals. Two units of the Saga modified to lefthand drive and with 1.8-litre engines were sent to a motorshow in Las Vegas in 1988 in what was meant to be a prelude to exporting the first batch of 30,000 cars to the USA for sale. However, things didn’t work out as expected and no further attempts were made to enter the biggest car market in the world at that time.
Like many manufacturers, Proton also considered local assembly in some markets and it did so for a while in the Philippines and had a project going for Iran. It also had a joint venture company with Mitsubishi Motors in Vietnam and the deal was that for models above 1600 cc, Mitsubishi’s models would be used, and Proton would provide models below 1600 cc. But things didn’t proceed as planned and Proton never got to assemble any model.
Proton’s distributor in Turkey, Ulu Motor, has been selling the Exora, Preve, Saga FLX and Persona.
From 2001 onwards, Proton had a new range of models and hoped to grow its exports, especially as the domestic market was supposed to be ‘opening up’ and competition would become more challenging. It even built a new factory in Tanjung Malim, Perak, with a capacity of up to 500,000 units in anticipation of an export offensive regionally.
However, for various reasons, export activities diminished and in Europe, as the emission and safety regulations got tougher, Proton’s aging platforms and engines became unacceptable. By 2010, even the ‘father of Proton’, Tun Mahathir Mohamed, acknowledged that perhaps Proton had not given sufficient thought to the need to make its cars suitable for global markets and only focussed on the domestic market because it was big enough. Dealerships in many of the 50 markets slowly stopped selling Proton which was not so helpful at a time when the company was also facing a decline in domestic sales.
The low export volumes since 1986 – around 406,000 units in total – are obviously not acceptable and exports are vital if the carmaker is to grow further. While being a significant global player would be too ambitious and unrealistic, the aim is to become No. 3 in ASEAN besides becoming No. 1 in Malaysia in due course.
“We are exploring all opportunities to grow export volumes for Proton,” said Dr Li Chunrong, CEO of Proton. “We are also leveraging on Geely’s extensive overseas network operations to increase the cost-effectiveness of Proton’s operations. Geely can support us in these initiatives and there is a lot of experience within the Group so we hope to leverage on it to enable us to sell more cars outside of Malaysia.”
The auto industry’s move towards engines that are smaller in displacement began about 10 years ago as a practical and cost-effective way to reduce fuel consumption as well as emissions. Unlike the older small engines, the modern powerplants did reduce performance or driving pleasure. On the contrary, with modern technology, they could generate as much or even more power and torque than even larger engines.
There are other advantages from this downsizing of engines too. They are more compact, especially if a 3-cylinder configuration is adopted which, in turn, means lower weight that again helps with fuel economy. Not so obvious to most is also the lower engine weight at the front improves the front-rear weight balance of the vehicle so the handling is better.
Joint development with Volvo
Geely took note of the trend over 10 years ago and as part of its forward-looking strategies, it began a joint development project with Volvo to develop a new powertrain family. The project, which would utilise part of the R&D investment of 20.73 billion yuan (RM 13 billion) during the decade, was carried out at Volvo’s R&D centre and the China Euro Vehicle Technology (CEVT) in Gothenburg, Sweden, as well as the Geely Automotive Research Institute in Hangzhou, China.
A ‘Nobel Prize’ winner
One of the engines that was co-developed was the 1.5-litre TGDi engine (1.5TD). The advanced engineering of this new engine as well as the 7DCT transmission won the Geely Holding Group the first prize in the China Automotive Industry Awards for Science and Technology on October 28, 2020.
The highest honour from China’s Society of Automotive Engineers in this year’s China Automotive Industry Awards for Science and Technology.
This highest honour from China’s Society of Automotive Engineers (SAE-China) is the most prestigious and influential technological award for the China automotive industry, considered as the industry’s ‘Nobel Prize’.
The award joins the ‘China Heart’ awards won by Geely for powertrain development earlier. These are the awards given to the Top Ten engines in China each year and are regarded as the ‘Oscars’ of the auto industry.
Small and compact – but powerful
The 1.5TD engine ticks all the boxes that a modern powertrain must have: powerful performance, lightweight structure, high reliability, good fuel economy and high fuel efficiency. Adopting advanced and innovative technologies, this small, efficient engine can develop up to 177 ps of power with up to 255 Nm of torque.
These are numbers which would be seen for engines with larger displacements but the 1.5TD engine achieves them with just 1477 cc. Helping to boost the output are a low-inertia turbocharger, direct fuel injection and continuous variable timing for both the intake and exhaust valves (Dual VVT).
Engines with three cylinders can be less smooth than the 4-cylinder units. To address consumer concerns about this issue, the engineers worked hard at reducing the noise, vibration and harshness (NVH) levels to that of 4-cylinder engines. No less than 120 NVH optimisation exercises were done as well as the dedicated design of 12 key parts such as counterweighted crankshafts, a vibration damping balancer shaft and dual mass flywheel with centrifugal pendulum absorber damper. Additionally, a low noise timing belt, high stiffness oil pan, asymmetric oil pump impeller, and engine compartment and vibration dampener also effectively eliminated perceivable engine vibrations for the occupants.
The 7DCT with a new standard
The 1.5TD is typically paired with Geely’s world-class 7-speed dual-clutch automatic transmission (7DCT). Developed based on Volvo’s high standards, this transmission sets a new standard for transmissions in the industry.
Weighing less than a conventional 6-speed automatic transmission, the 7DCT offers fast and accurate shift response along with high efficiency. It has a maximum efficiency of 97.2% and 0.2 second shift response time. For the driver, the 7DCT provides more enjoyable driving with the advantages of manual and automatic transmissions as there is the option of selecting gears manually too.
An international powertrain
Accepted and recognised at an international level, the 1.5TD engine powers more than 600,000 vehicles worldwide and the 7DCT transmission is estimated to be used in over one million vehicles by the end of 2020.
The 1.5TD + 7DCT powertrain is also found in the latest Proton X50 1.5 TGDi Flagship, endowing it with powerful and responsive driving performance, coupled with fuel efficiency and proven reliability.
Visit any Proton showroom to experience the performance of the 1.5TD + 7DCT. To locate a showroom near you, visit www.proton.com.
Polestar, the joint-venture company owned by the Volvo Car Group and Geely, has confirmed it will put the Precept into production. Revealed earlier this year, the Precept started life as a manifesto to illustrate the brand’s future vision and was described as a ‘commitment car’, not a concept car.
Besides showcasing the electric performance brand’s future design direction, the Precept also highlights Polestar’s path for digital technology and the use of innovative sustainable materials, inside and out.
Encouraged by positive feedback
Polestar was encouraged to turn it into a production model after encouraging response from the public.”’We’d like to see it on the road!’ – this is what the press wrote about Precept and the public said, ‘We want it’, so we decided to build it,” said Thomas Ingenlath, Polestar’s CEO.
“Consumers want to see change from this industry – not just dreams. Now, Precept becomes an even stronger statement. We are committed to reducing the environmental impact of our cars and our business. The aim has to be climate neutrality, even though I recognize that is a long-term goal,” he explained.
Advanced and sustainable
The interior of the Precept features a mix of sustainable materials including recycled PET bottles, reclaimed fishing nets and recycled cork vinyl. A flax-based composite, developed by external partner Bcomp Ltd., is featured in many interior and some exterior parts. Polestar’s ambition is to bring much of this sustainability into production.
In the model shown earlier this year, the next generation HMI (Human-Machine Interface), powered by Android, was demonstrated. Developed in close collaboration with Google, it features an enlarged, portrait-oriented 15-inch centre touchscreen that complements a 12.5-inch driver display. The two are linked by an illuminated blade that encompasses the entire interior.
Supporting the advancement of a personalised and dynamic digital interface, the instrument panel also hosts an array of smart sensors. Eye tracking will allow the car to monitor the driver’s gaze and adjust the content of the various screens accordingly. Proximity sensors also enhance the usability of the centre display when driving.
The name ‘Precept’ was chosen to emphasise the car’s role in setting out Polestar’s intent as the contemporary electric performance brand. A precept is a manifesto of things to come; a declaration. The car signifies an important milestone for Polestar as a standalone brand, describing a unique design philosophy that remains firmly embedded in Polestar’s brand values: pure, progressive and performance.
To be made in China
With product development underway, Polestar says it will produce Precept in China, where a new production facility will be established. The aim is to ensure the facility will be carbon-neutral and one of the most intelligent and connected automotive production facilities in the world.
The climate-positive narrative was started by a facility in Chengdu. Inaugurated in 2019, the Polestar Production Centre became the first LEED Gold-rated automotive production facility in China and runs on 100% renewable energy. It is producing the Polestar 1 – an exclusive, carbonfibre-bodied Electric Performance Hybrid – for both China and global markets.
In the 22 years that Geely Auto has been making cars, it has steadily established a presence in many segments of the automobile market. And like other global players, the company has also been increasing its presence in the booming SUV market.
Now it is entering the D-segment SUV market, a highly competitive area of the market that is currently dominated by foreign joint-venture brands (in the Chinese market). Its first entrant is the Haoyue, a 7-seater model with strong design, functionality, and value.
Speaking at the online launch event, the President & CEO of Geely Auto Group, An Conghui, said: “Geely is committed to meeting the different demands of people from all corners of life. Geely was founded on the premise of making good cars that are affordable for all, which today has transformed into ‘Making refined cars for everyone’. The Hao Yue’s unique offering in its segment will go on to lead the market and become another excellent product representative of the Geely Auto brand.”
Maximum space with ‘Expansive Aesthetic’
Geely’s ‘Expansive Aesthetic’ concept guided the design of the Haoyue’s broad muscular body. Its form integrates with technology to create a modern, refined design that strikes unique a balance of space and functionality. Sizewise, the Haoyue has an overall length of 4835, a width of 1900 mm and its roof line is 1780 mm from the road.
With a 2815 mm wheelbase, the Haoyue is available in both 5-seat and 7-seat configurations with rear seats capable of folding completely flat to maximise space utilization. Fully folded, the rear interior space can reach 2.2 square metres – equivalent to a king-sized bed – whilst the cargo space can be expanded to 2,360 litres, capable of accommodating all kinds of medium to large objects.
Both seating configurations offer extensive legroom, allowing users as tall as 1.9 metres to sit comfortably without any adjustments. Seats in all rows are adjustable including those in the third row which are even equipped with 8-way adjustable backrests. Customers can also opt for a 7 ‘VIP’ seat configuration that has 7 independently-adjustable seats.
The ‘Healthiest’ SUV
The Haoyue was developed following Geely’s ‘healthy car’ concept, with all materials undergoing stringent environmental testing. The company’s in-house requirements are over 20 times higher than Chinese national standards.
There is said to be no ‘harmful new car smell’, usually emanating from certain types of materials that are traditionally used in cars. The Haoyue also comes equipped with Geely’s officially certified CN95 grade high-efficiency air purification system capable of filtering out 99% of PM2.5 particles and 98% of droplets bigger than 0.74µm which may contain viruses and other harmful elements. In combination with a 3-zone air conditioner and AQS system, cabin air can be quickly purified and refreshed in under 3 minutes.
Powering the Haoyue is Geely’s latest 1.8TD engine paired with a dual-clutch 7-speed transmission. It is likely that this won’t be the only engine choice and a new 2-litre turbocharged petrol engine is expected to be offered in future.
Semi-autonomous motoring
L2-assisted driving technologies receive data from 24 sensors to provide 17 intelligent drive features. The various systems enable the large SUV to automatically follow, stop, as well as turn at speeds up to 150 km/h. The vehicle can also park itself automatically with 360° panoramic imaging.
Inside the Hao Yue, there’s the latest GKUI Geely Smart Ecosystem utilizing Geely’s independently developed high-performance quad-core dedicated vehicle microprocessor. GKUI allows users to interact with the vehicle through an AI-powered voice assistant. The ecosystem is also able to be integrated with a host of IoT (Internet of Things) applications such as JD.com’s Smart Home which allows for monitoring and controlling home appliances from the vehicle.
The driver can also interact and monitor information in the vehicle through the multiple high-definition displays including a 12.3-inch central infotainment panel, 12.3-inch full LCD instrument panel, and advanced WHUD heads-up navigation display.
An export model too?
In China, the Haoyue is priced from 103,600 to 139,600 yuan (about RM63,120 to RM85,000) with a choice of 3 variants. Export plans have not been announced but it is almost certain that Geely would sell it in places like Russia and Europe. ASEAN may a possibility if they can price it attractively enough as the D-segment market already has a number of models.
From the early days of the COVID-19 outbreak in China, the Geely Holding Group was already actively working on ways to join in the fight against the virus. Apart from making donations and providing support vehicles for frontliners, the company also used its R&D capabilities to quickly develop an in-car ventilation system that can keep the cabin air virus-free.
Now that the critical situation in China has diminished and the country is progressing towards normalcy, Geely Holding is helping other countries that are having the pandemic. In the case of Malaysia, where Geely and its local partner DRB-HICOM own and operate Proton, assistance is being given in the form of medical supplies.
The donation, consisting of disposable 3-ply surgical masks, protective medical clothing, medical goggles and PL 700 ADV ventilators, all of which are constantly required as they are replaced frequently. These items will be distributed to 55 hospitals located throughout the country through the Ministry of Health.
The donation, worth approximately RM5.5 million, is part of a larger initiative by Geely Holding to supply medical equipment via the Li Shufu Charity Foundation to affected areas in China and to countries where it has significant international operations. It aims to help local healthcare providers and communities at large in their battle against the COVID-19 pandemic.
The foundation was established in 2006 by Geely Holding’s founder, Li Shufu, with a focus on poverty alleviation and helping with national disasters. In January 2020, it set aside RMB200 million (about RM120.33 million) to support the fight against COVID-19 on a global basis.
“As a socially responsible company, we have a duty to support the well-being of every market in which we operate. I am proud that we have the resources and logistics capability to ship vital supplies to areas hard-hit by this global pandemic. We will play our part, whenever possible, to lend support to communities and medical authorities to overcome this global challenge”, said Geely Holding’s Chairman, Li Shufu.
Some of the X70 SUVs loaned by Proton to the Health Ministry.
In addition to medical supplies received from China, Proton has loaned 50 units of its X70 to the Ministry of Health for their logistical operations. The carmaker has also produced 60,000 units of face shields at its factory.
Meanwhile, DRB-HICOM has been an active supporter of COVID-19 relief efforts in Malaysia. Along with other subsidiaries under its parent company, the Albukhary Group, the Malaysian conglomerate has contributed cash donations, medical equipment, meals for government hospitals, media frontliners and university students, as well as long-range drones for monitoring and surveillance purposes.
“As a key contributor to the nation’s economy, we felt compelled to assist the government in its battle against the spread of COVID-19. The frontliners form the country’s backbone in this fight, and it is essential for us to assist them in any way possible. We are especially fortunate to have a partner like Geely who has been extremely generous in leveraging their resources to make this happen,” said Dato’ Sri Syed Faisal Albar, Chairman of Proton.
Mercedes-Benz AG and China’s Zhejiang Geely Holding Group have formally established a global joint venture company to handle the German carmaker’s smart brand. Pending regulatory approvals, the company will have its global headquarters in Hangzhou Bay, Ningbo with operational sales functions in both China and Germany.
The total registered capital of the joint venture will be 5.4 billion RMB (about RM3.18 billion) to transform smart into a leading player in premium-and intelligent electrified vehicles. Both parties will equally contribute equally, with the share of Mercedes-Benz mainly covered by the contribution of the smart brand.
A signing ceremony in March 2019 marked the beginning of establishing the joint venture to produce and market smart cars.
New EV model to be produced in China
A new generation of smart electric models will be assembled at a new purpose-built factory in China with global sales due to begin in 2022. The new generation will be designed by the worldwide Mercedes-Benz Design network and developed by the Geely global engineering network. As part of the vehicle-development program, the smart product portfolio will be extended into the fast-growing B-segment that are in line with smart’s brand positioning with a focus on pure premium electric and connected vehicles.
“The joint venture will bring the next generation of zero-emission smart electric cars to the Chinese and global markets. We look forward to continue our collaboration to bring desirable products and services to customers around the world,” said Ola Kallenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.
Boardroom composition
The board of directors of the new joint venture will be made up of 6 executives with equal representation from both parties. On the German side, representatives will be from Daimler AG and Mercedes-Benz AG. Geely board representatives will include Geely Holding Chairman Li Shufu, Geely Holding President, Geely Auto Group President & CEO An Conghui, Geely Holding Executive Vice President & CFO Daniel Donghui Li.
Tong Xiangbei has been appointed the new global CEO of the smart joint venture and will oversee all operations relating to the brand including sales, marketing, R&D, production and after sales. Tong has more than 2 decades of experience in the automotive industry. Before joining the smart joint venture, he has worked for global automotive companies in the USA and in China.
Production line at the smart factory in France.
“The smart brand has a unique value and global influence; it has grown to be a leader in urban mobility. Geely Holding will fully support the smart brand with its full advantages in R&D, manufacturing, supply chain and other fields into the joint venture and support its development in China and globally. We will work together with Mercedes-Benz to transform the smart brand into a leading player in urban premium, electric and connected vehicles to successfully develop the brand’s global potential,” said Li Shufu.
History of smart
The story of smart cars goes back to the early 1980s when Nicolas Hayek, the CEO of the company making Swatch watches, had an idea to apply the same concept of personalisation to making and retailing cars as what was done for the watches. Initially, Volkswagen was involved in the project but Hayek later tied up with Mercedes-Benz. By 1996, the German carmaker took control of the company making smart cars and embarked on a more aggressive growth plan.
First generation of the smart fortwo was sold in Malaysia for a while.
The little smart cars found a niche as city cars but due to having to meet the demanding and high standards of Mercedes-Benz in the safety, they were not cheap. The brand also did not contribute profits and in fact, lost a huge amount of money.
However, Mercedes-Benz didn’t give up and modernised the factory in France to be more productive and cost-efficient. The third generation started rolling out in 2015 and is sold in over 40 markets worldwide. To date, 2.2 million cars have been sold since 1998.
At long last, locally-made versions of the Proton X70 are now being released, one year and one day after it was launched in Malaysia as the first joint product of the DRB-HICOM partnership in the Malaysian carmaker.
Until today, Proton has been making the X70 in China and bringing the SUV in as a completely built-up (CBU) vehicle, just like some models of other makes from Europe and Japan. However, even though the vehicles were made in China, many parts were sent from Malaysian suppliers so even before today, Malaysian-made parts have been incorporated.
One of the reasons for using parts from Malaysia was that the X70 is a righthand drive model and the factory in China doesn’t make such a variant, so parts have not been made there. The other reason could be that the volume required was ‘small’ by the standards of vendors in China and as their supply would not be needed after a year, it was probably not worthwhile for them.
The plant in Tanjung Malim, Perak, has been in existence since 2004 but when Geely became involved, a major renovation was undertaken and a new RM1.2 billion extension was added. New manufacturing processes and equipment were also installed to raise efficiency and productivity along with quality.
Developing the vendor eco system
At the same time, Proton worked together with local and overseas vendors to establish a supply chain for parts required to build its first SUV, would be in place when production activities began. During the preparatory phase prior to start of production some months ago, Proton worked closely with its local vendors to match them with other companies who were already supplying components for the SUV.
These efforts resulted in 7 new joint-ventures being formed as both local and foreign companies started partnerships based in Malaysia to share competencies and production resources.
Other business relationships established include technical agreements and foreign direct investments, resulting in a total investment of RM263 million and the creation of 1,084 jobs as the vendor community gears up to create a pipeline of high technology components for the X70 and future models.
Production hub for RHD vehicles
“Today marks a historical milestone for Proton as we take another step towards being a global automotive brand. By producing the Proton X70 in Tanjung Malim, we have taken a quantum leap in our abilities as this is by far our most ambitious undertaking to date. This new plant will not only produce future products jointly developed with Geely but it will also be a centre for right-hand-drive production as we begin exports to countries all over world,” said Dato’ Sri Syed Faisal Albar, Proton’s Chairman, at the exclusive and private roll-out ceremony held earlier today,
An Conghui, President & CEO of Geely Auto Group, confirmed that Proton’s position within the Geely Auto Group is to be a valuable partner to grow sales in ASEAN markets.
“PROTON has undergone a tremendous transformation over the past 2 years. This experience has worked out very well for us at Geely Auto as we are happy to help Proton realize its global aspirations. We will continue to support Proton as it grows in the Malaysian market and in the wider ASEAN region and beyond,” he added.
Ever since Proton formed its partnership with the Zhejiang Geely Holding Group (more commonly referred to as Geely) in 2017, it has been on an upward trajectory in all aspects of the business. Given the troubled years of the late 2000s and early 2010s, perhaps Proton should have embarked on such a partnership earlier because the auto industry was already changing. In the late 1990s, globalization led the bigger players to realise that consolidation was going to be vital for survival as competition intensified.
Daimler AG’s Jurgen Schrempp created a ‘mega car company’ by ‘merging’ Daimler and Chrysler and thereafter, other companies formed alliances or merged as well. But at that time in the late 1990s, Proton felt it was about to ‘graduate’; it had learnt all there was about being a carmaker and by 2000, the CEO confidently told Malaysians and the world that it was a full-fledged carmaker ready to take its place in the global arena as a credible brand. It did not need to rely on other carmakers any longer; on the contrary, the CEO said: “Other carmakers are knocking on our doors for our technology.”
However, various domestic and internal issues prevented Proton from moving ahead and worse, it slipped from leadership in its own market where it had been able to hold the biggest share. Various parties with different interests either supported moves to find partners or simply rejected the idea on the grounds that Proton would lose its Malaysian identity.
By 2016, it was clear that having a foreign partner was the only way for Proton and DRB-HICOM picked Geely because it was the ‘best fit’. The partnership has since worked well and facts and figures suggest that it won’t be long before Proton is up at the top. It’s already No.2 in overall sales; registering a 36% growth in a market that saw a 5% decrease in sales; and it is the only major brand to have double-digit growth in 2019.
This has come about with assistance and guidance from Geely in many areas, especially quality. The Chairman of Proton Holdings, Dato’ Seri Syed Faisal Albar, added that much serious effort had gone into ‘improving and correcting the fundamentals’ of the business. And while the dealerships have all been upgraded significantly to enhance and improve the customer experience, attention has also been given to changing the mindset of those who work for the brand. It is no longer like the early years when it was a seller’s market and customers had limited choices as competition today means that they can consider many alternatives.
So, 2 years after starting a new chapter in its history, Proton’s progress is back on track and it is winning back the trust of customers in its most important market. “Our ambition is to become a truly modern, global automotive brand. Our new ethos comprises our core values of always using innovative technology, our commitment to reliability and adopting an international point of view,” said Dr. Li Chunrong, CEO of Proton.“
Having completed one chapter, Proton is now about to embark on the next one and to signify this, the brand logo has been given a subtle makeover. It is a more stylized representation of the tiger head, rendered in silver, with a stronger finish. The new design ‘uncages’ the figure (with more geometric lines) which has its head held high to show a determination to move forward to success.
Accompanying the new logo is Proton’s new tagline which will now be ‘Inspiring Connections’. It is said to encapsulate the brand’s aspiration of ‘utilizing technology and mobility to help make human connections that inspire a successful life’.
EVOLUTION OF THE PROTON LOGO
Proton’s first logo appeared with the Saga, its first model. To strengthen its identity as a Malaysian National Car, the logo incorporated the Malaysian flag with the star and crescent on a dark blue background. The combined elements were inserted at the top of what resembled a shield with a grey finish. This badge was used only on the Saga up till 1993.
During the late 1980s when the first exports of Proton cars began, there was actually an alternate logo used for some markets. This was an entirely different design which did not use the Malaysian flag although a yellow ‘star’ with 14 points in the middle alluded to its identity. Surrounding the central elements was a circle of silver stars set on a blue background. According to a former Proton executive who was involved in the export business, the alternative logo was used to ‘play it safe’. “We were a young company, just getting into the car-making business and we felt we had to take into consideration the sensitivities of some of the markets we entered. Our new dealer partners in some of those markets suggested that a less ‘Muslim-looking’ logo would be better and so we followed their advice and came up with something neutral,” he recalled. However, the alternate logo was used only for a small number of markets in Europe. It was eventually dropped as Proton’s confidence grew and the brand got established and accepted. Some units appeared on Malaysian roads but these were cars that were brought back from overseas by some owners or the badge was changed.The next time the logo was restyled was in 1993 when the Wira was introduced as the third Proton model after the Saga and Saga Aeroback. This logo continued with the theme of the Malaysian flag and retained the colours but the larger part of the grey shield was omitted. The logo became more compact within a triangular shape which could still be regarded as a ‘shield’.
With the launch of the Waja in 2000, a new logo appeared on the grille that reflected a bolder and more confident Proton. It was a major change as the star and crescent were no longer used and instead, the head of a tiger was used. The triangular shield was maintained and the PROTON name appeared at the top, over the tiger’s head which was within a circle. The new logo was greeted with different views and the young generation made comparisons to the ‘Thundercats’, characters from an animated TV series in the 1980s. But by and large, the new logo was accepted over time and served as a brand logo as well as corporate logo.In 2008, coinciding with the launch of a new Saga generation, the logo underwent a subtle change. Its overall appearance was similar to that which was used from 2000 but it became monochrome and metallic-like with silver and black only. An engineer suggested that the change was a cost-saving moving but the monochrome badge was used only on the cars, while the corporate logo (below) appeared to become more ‘robust’ and retained the original colours.
2016 saw a more substantial change to the logo and the PROTON name was no longer present. The stylistic elements were retained with the tiger head still ‘caged’ inside a circle and the triangular shield serving as a background. The monochrome theme was also retained although the overall size of the logo was slightly larger. This badge continued to be used in the Proton-Geely era with the PROTON name gaining more prominence on its own along the back of the cars.
The beginning of the Malaysian car industry can be considered to have started in the mid-1960s when the government introduced its first policy for the automotive industry. The policy set a strategic direction with the implementation of preferential tariffs for carmakers that assembled their vehicles locally, as well as used parts obtained in Malaysia. It was one of the moves to take the country’s economy from being agriculture-based to industry-based.
Response was good from the carmakers and by the end of the 1960s, a number of assembly plants were operating and producing a variety of models. However, the majority of these plants were in Peninsular Malaysia – clustered in the Klang Valley and in Johor. This was because vehicle demand in Peninsular Malaysia was growing rapidly.
The East Malaysian states, on the other hand, were still largely lacking a proper road network and potential sales were also not high back then. Commercial vehicles and 4×4 vehicles like the Toyota Land Cruiser and Hilux were more popular than cars.
So while the development of the sales and service network was more active in Peninsular Malaysia, it was slow in Sabah and Sarawak. This is not to say that the states were neglected by the car companies, but it was a matter of the number of vehicles sold and the number of supporting outlets needed.
Today, however, the East Malaysian market has grown substantially as the economies of the two states have advanced. This has been helped by the better roads and road network and rather than travel in bumpy light commercial vehicles, many East Malaysians now prefer passenger cars with more comfort.
Sabah gets Proton’s first flagship 4S centre
Perhaps in recognition of this progress, Proton chose the state of Sabah for its first flagship 4S centre in Malaysia. The brand new outlet is operated by Fook Loi Corporation (Sabah) Sdn Bhd and has a distinctive Corporate Identity that is associated with the new Proton which has come about following the partnership with Geely.
Setting up a dealership requires millions of ringgit in investment and as Proton has shown that the brand is on the ascendancy with rapidly growing sales, businessmen now see being a Proton dealership it as a viable investment.
“Deciding to become a Proton dealer was not difficult because we see the potential for Proton in Sabah. The current range of Proton models is highly competitive and technologically advanced with features that appeal to the new generation of car buyers,” said Thomas Chiu Kui Yin, Group Executive Director of Fook Loi.
Additional Body & Paint services
Seeing much potential in the aftersales business, Fook Loi chose to go all the way and be a 4S outlet. This means it offers customers an added Body & Paint service for the repainting and restoration of vehicles to Proton’s standards when they have been damaged.
Every aspect of the outlet adheres to Proton’s objective of giving customers a great experience and is spacious, comfortable as well as pleasing to the eye. It offers free wifi, a kids’ corner, ample parking space and a coffee area. Equally important, the outlet has well trained sales and service staff who can provide a high quality customer experience.
“These may seem like simple requirements, but they are critical ones. When customers walk into our showroom or service centre, they would like to be greeted by smiling faces and a beautifully lit area. This will then set the tone for more meaningful conversations and customers will feel welcomed and appreciated. Since outlets are our first point of contact, numerous steps have been taken to ensure that a wholesome experience starts here. These efforts have paid off. Our sales have been on an increasing trend and with our new products, we are confident that we are on track for the company’s return to profitability,” said Dr. Li Chunrong, CEO of Proton.
