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China’s Geely Buys Controlling Stake in Lotus, Proton

Parent of Volvo plans to revive both struggling operations.

by on May.24, 2017

Lotus hopes the new Evora 400 will help put it back on the map after a series of disasters.

China’s ambitious Zhejiang Geely, already the owner of Volvo Cars, is expanding its automotive portfolio with the acquisition of a controlling share of Britain’s Lotus and Malaysia’s Proton.

The announcement forestalls the bidding war some had forecast for Lotus, the specialty car manufacturer that has run into a devastating series of setbacks in recent years. Proton has had its own challenges, its once dominant share of the Malaysian market collapsing due to cheap import competition.

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Geely is expected to pump significant capital into its two new subsidiaries, much as it has done for Volvo, which it acquired from Ford Motor Co. in 2012. The Swedish brand has gone through a complete makeover since then, winning kudos for new products and experiencing a sharp upturn in sales after a long slump.

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