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Proton Achieved Highest Sale For The Year

Malaysian automaker Proton has dominated thus sales for Proton.
the Asian country's auto market in the The involvement of the largest European
past. With backing from the Malaysian automaker in Proton may have also helped
government, Proton was able to offer the latter's cause. Volkswagen AG, the
their vehicles at a significantly lower manufacturer of Volkswagen vehicles and
price than the competition. But in auto parts such as VW spark plug wires,
recent months, the Malaysian automaker is having talks with the Malaysian
faced its toughest problem. With foreign government over possible acquisition of
automakers like Toyota expanding their the Malaysian automaker. Three rounds of
presence in Malaysia, the national car talks have already taken place between
producer of the Asian country is in the Malaysian government and
danger of plunging into more debt. representatives of the European
But it seems that the automaker has found automaker. A decision is expected to be
a lifeline in Volkswagen. The European reached before the end of the year.
automaker has been in three rounds of In the recent unveiling of the new Proton
talks with the Malaysian government Persona, it was reported that the launch
regarding the possible acquisition of the was connected with the ongoing talks
majority of shares in Proton currently between the Proton and Volkswagen. But
held by the Malaysian government. While Prime Minister Datuk Seri Abdullah Ahmad
the deal is not yet completed, Proton is Badawi cleared the issue saying:
already showing signs of resurgence after "…foreign news reporter asked if the
it posted its highest sale for any month new car would enhance Proton's standing
this year last month. because Volkswagen would like it that
According to the automaker's report for Proton has a good car."
the moth of July, they have sold 44,926 "My reply was that talks between Proton
vehicles for the month. That figure is and Volkswagen had nothing to do with the
2.6 percent more than the company's sales production of this car or any particular
output forte month of June this year. car," the Prime Minister continued.
Compared to last year's July, the "We are talking about some kind of
company's July 2007 sales are 9.6 percent general cooperation that could possibly
higher. This shows that Proton is be either on equity participation or in
starting its resurgence. the form of some other kind of
The Malaysian Automotive Association said cooperation."
in a statement that the increased sale The possible acquisition of Proton by
for the Malaysian automaker is the result Volkswagen would mean that the latter
of the higher income of civil servants. will be pouring in money to the
It has been reported that civil servants operations of the Malaysian automaker.
in the said Asian country had their wages It is expected that Volkswagen will be
increased by 7.5 to 35 percent. The marketing Proton vehicles outside the
introduction of new auto models is also a country while Proton will aid Volkswagen
reason for the increased attention and in the Malaysian auto market.




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