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