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Proton Achieved Highest Sale For The Year

Malaysian automaker Proton has dominated theProton.
Asian country's auto market in the past.
With backing from the Malaysian government,The involvement of the largest European
Proton was able to offer their vehicles at aautomaker in Proton may have also helped the
significantly lower price than thelatter's cause. Volkswagen AG, the
competition. But in recent months, themanufacturer of Volkswagen vehicles and auto
Malaysian automaker faced its toughestparts such as VW spark plug wires, is having
problem. With foreign automakers like Toyotatalks with the Malaysian government over
expanding their presence in Malaysia, thepossible acquisition of the Malaysian
national car producer of the Asian country isautomaker. Three rounds of talks have
in  danger  of  plunging  into  more  debt.already taken place between the Malaysian
government and representatives of the
But it seems that the automaker has found aEuropean automaker. A decision is expected
lifeline in Volkswagen. The Europeanto  be  reached  before  the end of the year.
automaker has been in three rounds of talks
with the Malaysian government regarding theIn the recent unveiling of the new Proton
possible acquisition of the majority ofPersona, it was reported that the launch was
shares in Proton currently held by theconnected with the ongoing talks between the
Malaysian government. While the deal is notProton and Volkswagen. But Prime Minister
yet completed, Proton is already showingDatuk Seri Abdullah Ahmad Badawi cleared the
signs of resurgence after it posted itsissue saying: "…foreign news reporter
highest sale for any month this year lastasked if the new car would enhance Proton's
month.standing because Volkswagen would like it
that  Proton  has  a  good  car."
According to the automaker's report for the
moth of July, they have sold 44,926 vehicles"My reply was that talks between Proton and
for the month. That figure is 2.6 percentVolkswagen had nothing to do with the
more than the company's sales output forteproduction of this car or any particular
month of June this year. Compared to lastcar,"  the  Prime  Minister  continued.
year's July, the company's July 2007 sales
are 9.6 percent higher. This shows that"We are talking about some kind of general
Proton  is  starting  its  resurgence.cooperation that could possibly be either on
equity participation or in the form of some
The Malaysian Automotive Association said inother  kind  of  cooperation."
a statement that the increased sale for the
Malaysian automaker is the result of theThe possible acquisition of Proton by
higher income of civil servants. It has beenVolkswagen would mean that the latter will be
reported that civil servants in the saidpouring in money to the operations of the
Asian country had their wages increased byMalaysian automaker. It is expected that
7.5 to 35 percent. The introduction of newVolkswagen will be marketing Proton vehicles
auto models is also a reason for theoutside the country while Proton will aid
increased attention and thus sales forVolkswagen in the Malaysian auto market.



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