KUALA LUMPUR (Sept 15): DRB-Hicom Bhd said its partner Zhejiang Geely Holding Group will be nominating a suitable candidate to take on the role of chief executive officer at Perusahaan Otomobil Nasional Sdn Bhd (PONSB), the production arm of Proton Holdings Bhd.
DRB-Hicom said the nomination for PONSB's CEO is part of its definitive deal with Geely, in which Geely is committed to not only hold an investment in Proton but also to lend its expertise in production, manufacturing, operations and marketing, "namely PONSB", said DRB-Hicom in a statement today.
The announcement came amid speculation that Proton would be getting a new CEO from China, with former Dongfeng Honda Engine Co Ltd deputy general manager Li Chunrong, who has joined the senior management of Geely, tipped to oversee Proton's operations.
"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," said DRB-Hicom group managing director Datuk Seri Syed Faisal Albar.
In the statement, DRB-Hicom also said Proton CEO Datuk Ahmad Fuaad Kenali will be stepping down from his post on Sept 30, a year and a half after he took on the role on April 30, 2016.
It also updated that the partners are now finalising the detailed business plan for Proton after Geely emerged as the 49.9% shareholder in the national carmaker last June.
Proton's business plan, said DRB-Hicom, is one of the key items to be concluded as part of deal to have Geely as a foreign strategic partner (FSP) in Proton.
"The business plan will incorporate strategies for both companies to develop new vehicles together for the global market," added DRB-Hicom.
Besides PONSB, the Proton Group is made up of its holding company Proton, and a wholly-owned subsidiary, PROTON Edar Sdn Bhd, which handles distribution.
DRB-Hicom said all three companies in the Proton Group shall have board representations from both DRB-Hicom and Geely. "For all three entities, DRB-Hicom has one additional seat at the board of directors level; matching the 50.1% that DRB-Hicom holds [in Proton]," it added.
Syed Faisal, said DRB-Hicom, will retain his position as chairman of the national carmaker, to ensure the tie-up with Geely will achieve its benefits.
Meanwhile, Datuk Radzaif Mohamed will continue on as deputy CEO of PONSB, whereas Abdul Rashid Musa, who was named as CEO of Proton Edar in February 2017, will also continue in his role as the CEO of the distribution arm.
"With Radzaif and Rashid remaining in their positions, this ensures continuity within the Proton Group. It will also ease the transition of the future CEO of PONSB and this can only be good for the venture," added Syed Faisal.
As for Fuaad's departure, Syed Faisal said: "Both the Boards of DRB-Hicom and Proton Holdings express our utmost gratitude for his immense contribution both at DRB-Hicom and at Proton; ending with the highly successful outcome of having Geely Holding as an FSP for PROTON Group."
Fuaad was also commended for having done "an impeccable job" in his short tenure at Proton. "Under his watch, Proton had rolled out four new models in a span of eight short months. He also played a vital role in closing Proton's search for a suitable FSP," he added.
Fuaad, Syed Faisal said, will be assuming a big role with a related company and the boards wish him the best for his future undertakings.
Geely emerged as a stakeholder in Proton following a deal with DRB-Hicom for a consideration of RM460 million — satisfied via RM170 million cash and the transfer of Geely's platform for its best-selling Boyue SUV to the ailing national automaker, valued at RM290 million.
Geely also bought 51% ownership of Lotus Advance Technology Sdn Bhd for £51 million (RM290.51 million). The other 49% was sold to Sri Syed Mokhtar Albukhary's private unit Etika Automotive Sdn Bhd for £49 million.
At 5pm, shares of DRB-Hicom rose 1.86% or 3 sen to close at RM1.64, giving it a market capitalisation of RM3.17 billion.