Geely Automotive Holding is all set to buy Lotus. As a part of the deal which is expected to be solidified in July, Geely gets 51 per cent of Lotus, thus acquiring full ownership of the British marque.
Geely will also buy 49.9 per cent of Malaysian carmaker Proton from its parent company DRB-Hicom. Geely intends to revive the loss-making Proton brand and just like with Volvo back in 2010, it plans to bring in new developments and expanding product and technologies for Lotus too. Lotus, on the other hand, was having a hard time with new product development. Now with the cash flowing in from the Chinese giant, we might soon see many new Lotus cars on the road, something which the carmaker has been wanting to do for half a decade now.
The acquisition would give the Chinese carmaker access to Proton’s powertrains, but most importantly an entry to the South Asian market. But this is nothing compared to the benefit the Chinese giant can reap from Lotus Engineering. Lotus expertise in engine and suspension could also help Volvo’s Polestar division in the years to come.
