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Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans?

Hans · May 30, 2021 12:00 PM

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 01

By now, you would’ve realized that Proton is setting itself up to launch its third SUV in a row – the 2022 Proton X90.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 02

Nope, Geely Jiaji is no longer in the near-term plan for Malaysia

And no, Proton is not launching a new MPV model anytime soon but before you remind us about the Geely VF11 (Geely Jiaji) mentioned in the 2018 agreement with Proton, note that the model sharing agreement signed in 2018 has already expired on 31-December 2020.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 03

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It is safe to say that the Geely Jiaji (Proton V70?), once touted as a more upmarket successor to the Proton Exora, is no longer happening.

Also read: Proton V70 (Geely Jiaji) might be dropped in favour of Proton X90 (Geely Haoyue)

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 01

Instead, Proton has changed its plans, abandoning the insignificantly small MPV market for the much more lucrative SUV segment, hence the Geely Haoyue / Proton X90.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 02

Interior of Geely Haoyue

Also sold in the Philippines as the Geely Okavango, the Haoyue is powered by a 1.8-litre turbocharged 4-cylinder engine (184 PS / 300 Nm) paired to a 7-speed wet dual-clutch transmission – the same combo seen in the Proton X70 (CKD).

Also readGeely Haoyue SUV price revealed, from CNY 108k to 148k, 1.8T & 7-DCT

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 03

Also read: Spied: 2021 Geely Haoyue spotted on Malaysian roads - Proton X90 is real after all?

Granted, Proton hasn’t said anything to confirm the X90 but test mules have already been spotted on local roads and Malaysians should have enough experience with the Proton X70 and Proton X50 to know what’s coming next.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 04

In China, Haoyue is available either as a 5- or 7-seater

You don’t need to think too hard to guess what the 7-seater Geely Haoyue-based SUV will be called next. At this point, Proton’s confirmation of the X90 is merely symbolic.

The launch of new generation Geely-based sedans, which were once implied in Proton’s mid-term plan shared with the media in 2019, have been pushed back.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 05

This is no longer valid, plans have changed

We know for a fact the Proton won’t be introducing any new Geely-based sedans anytime soon. Instead, the model life of the current generation Proton Saga and Proton Persona will be stretched with minor tweaks and improvements.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 06

But here’s the ironic part, sedans – Saga and Persona - contribute over 52 percent of Proton’s sales (as of Q1 2021)! But yet, Proton is not able to make a business case for a new generation Proton sedan.

Proton's sales, Q1 2021 (units)
Saga 12,299
X50 7,750
Persona 4,939
X70 4,894
Iriz 1,743
Exora 1,098
Others* 103
Total 32,826

*Discontinued models, mostly Proton Perdana

Although volumes for the Proton Saga and Proton Persona are high, Proton is hardly making any money out of these models, and both were underperforming prior to Geely’s entry into Proton.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 07

A prudent management needs to ensure that investments into these products are recovered before they can be dropped. Hence the decision to improve the Saga and Persona (as well as Iriz and Exora) rather than spending money to develop new models.  

In Malaysia, sales of sedans have a very uneven, hour-glass shape-like distribution – fat at the top and bottom, but thin in the middle.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 08

Sedans are popular only in luxury and entry-level segments. It’s either a Proton Saga / Perodua Bezza / Toyota Vios / Honda City, or a Mercedes-Benz C-Class / BMW 5 Series.

The middle ground is a hollow one, having been displaced by SUVs.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 09

The Honda Civic reigns supreme because it’s the only CKD C-segment sedan on the market today. All other models including the Toyota Corolla Altis, have either been discontinued, or switched to an import-only arrangement, because the sales volumes don’t justify the investments required for local assembly.

Also readCOTY 2020 – Why younger rivals still can’t unseat the 2020 Honda Civic (FC) from its throne?

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 10

Proton / Geely has little interest in picking a fight with the Civic

Can the Proton Preve or Proton Suprima S or Proton Perdana make a return? The Geely Binrui and Geely Preface are fine cars to fill the C- and D-segment gap, and will probably do well to pull buyers who don’t like SUVs, but it’s a stretch to say that Proton has the means to fund any investments into these models.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 11

Geely Preface

In such conditions, a company’s management’s directions is usually to build on present success, and improve on a proven, winning formula. In Proton’s case, it is SUVs.  

To a casual observer, Proton merely need to take an existing Geely sedan, and convert it to right-hand drive.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 12

The reality is a lot more complex than that. Remember that Proton is not a wholly owned subsidiary of Geely, but merely a quasi-independent company that Geely has a 49.9 percent stake in.

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 13

Geely Binrui

If Proton wants a new model from Geely, they will have to pay for it. Did you know that for every Geely staff that is sent to work at Proton, Proton has to pay consultation fees? The arrangement is not too different from hiring external consultants, or the old days of Proton’s partnership with Mitsubishi Motors.

Also read2022 Proton X90 could be priced cheaper than expected, but not necessarily in a good way

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 14

The relationship of Proton and Geely is not the same as Skoda and Volkswagen. Having Geely on-board doesn’t mean that Proton is granted free access to Geely’s parts bins.

Sounds like a shitty deal for Proton then? Well, Geely’s counter argument would be if Proton is unhappy with the arrangement, they are free to go back to doing things on their own (and we all know what the results were), or going back to Mitsubishi, or Honda, or Suzuki (none of which want to work with Proton anymore).

Proton X90, yet another Proton SUV? Why is Proton saying no Geely sedans? 15

Unfortunately, Proton doesn’t hold much clout in this delicate power balance and they only have themselves to blame, for squandering away over 25 years of head start. So much for national pride huh?

For Proton, a company that was built on sedans – the Saga, Wira, Perdana – the dream of seeing a new Proton sedan is a dream too far.

Hans

Head of Content

Over 15 years of experience in automotive, from product planning, to market research, to print and digital media. Garages a 6-cylinder manual RWD but buses to work.

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