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China's Geely buying majority stake in Lotus
Wed, May 24 2017Geely, the Hong Kong car company that owns Volvo, is acquiring control of British car company Lotus. Geely is purchasing a 51-percent stake in Lotus from struggling Malaysian car company Proton, and a 49.9 percent stake in Proton itself. Etika Automotive will gain the other 49 percent of Lotus. France's PSA Group and Japan's Suzuki had apparently also been interested in acquiring Proton. Geely says it plans to revive both Proton and Lotus. "The agreement lays the foundation for a wider framework for both Geely Holding, Proton and Lotus to explore joint synergies in areas such as research and development, manufacturing and market presence," Geely said in a news release. Those joint synergies will be highlighted by the lightweight chassis technology Lotus is known for, which could help Geely improve fuel efficiency. Geely CFO Daniel Donghui Li said the company aims to "unleash the full potential of Lotus Cars" by expanding and accelerating new products and technologies. Proton was nationally held but was privatized in 2007 to Malaysian conglomerate DRB-Hicom, which is owned by tycoon Syed Mokhtar Al-Bukhary. It was supposed to be the flagship for Malaysia's economic development.Though it owns two factories, Proton mainly rebadges foreign-made cars and sells them in Malaysia. What it has, what Geely presumably wants, is a distribution network in Southeast Asia to pit Chinese cars against Japanese automotive dominance in the region. Retaining a 50.1-percent stake in Proton is seen as a face-saving move. "Proton will always remain a national car and a source of pride, as Proton will still have a majority hold of 50.1 percent," Malaysian finance official Johari Abdul Ghani said. "Our very own much-loved brand now has a real chance in making a comeback, a huge one I hope." Related Video:
Geely to release models developed with Volvo in 2015
Thu, 22 Aug 2013Geely and Volvo will finally team up for a jointly developed vehicle, more than three years after the safety-minded Swedish brand was gobbled up by Geely's parent company, according to a report in Automotive News Europe. The story quotes Geely's CEO, Gui Sheng Yue saying, "We have entered into actual research and development stage and I believe we can see the new product in the year after next."
That means 2015, which is a mighty ambitious timetable to bring a vehicle to market. But as Geely's CEO explains, life isn't going to get any easier in the Chinese market, "Competitive pressure on domestic brands in the China market should increase considerably in the coming years as most major international brands are strengthening their presence," he told ANE. Those statements also tell us that we shouldn't expect to see Geely on American shores any time soon. The brand is simply too focused on topping the Chinese market, at least among CDM brands.
How does a massive Volvo truck compare to a Koenigsegg on a track?
Tue, 11 Nov 2014Volvo Trucks thinks that its latest FH semi truck has a little sports car DNA mixed in with the ability to haul heavy loads thanks to its novel dual-clutch gearbox. And the company's marketing department certainly has an intriguing strategy to get the word out about the big rig's sporty traits. First, it staged a prank on an unsuspecting valet on the Italian Riviera, and now the FH has lined up a track battle around the Knutstorp racetrack against Sweden's ultimate supercar - a Koenigsegg One:1.
Fifth Gear host Tiff Needell takes the reins of the big Volvo and spends a little bit of time talking up its I-Shift Dual Clutch gearbox. However, the real fun is seeing the FH taking on the One:1. Of course, a head-to-head battle would hardly be fair against these extremely mismatched opponents. Instead, the challenge is for the 1,360-horsepower Koenigsegg to lap the track twice in the same time or less than the semi can do it once.
You just have to watch the video to see how if the big rig rises to the challenge. Also, scroll down to read Volvo Truck's press release touting the new gearbox, and check out the company's YouTube channel for more views of the race and a behind-the-scenes look.