| Malaysian automaker Proton has dominated the | | | | Proton. |
| 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 a | | | | automaker in Proton may have also helped the |
| significantly lower price than the | | | | latter's cause. Volkswagen AG, the |
| competition. But in recent months, the | | | | manufacturer of Volkswagen vehicles and auto |
| Malaysian automaker faced its toughest | | | | parts such as VW spark plug wires, is having |
| problem. With foreign automakers like Toyota | | | | talks with the Malaysian government over |
| expanding their presence in Malaysia, the | | | | possible acquisition of the Malaysian |
| national car producer of the Asian country is | | | | automaker. 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 a | | | | European automaker. A decision is expected |
| lifeline in Volkswagen. The European | | | | to be reached before the end of the year. |
| automaker has been in three rounds of talks | | | | |
| with the Malaysian government regarding the | | | | In the recent unveiling of the new Proton |
| possible acquisition of the majority of | | | | Persona, it was reported that the launch was |
| shares in Proton currently held by the | | | | connected with the ongoing talks between the |
| Malaysian government. While the deal is not | | | | Proton and Volkswagen. But Prime Minister |
| yet completed, Proton is already showing | | | | Datuk Seri Abdullah Ahmad Badawi cleared the |
| signs of resurgence after it posted its | | | | issue saying: "…foreign news reporter |
| highest sale for any month this year last | | | | asked 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 percent | | | | Volkswagen had nothing to do with the |
| more than the company's sales output forte | | | | production of this car or any particular |
| month of June this year. Compared to last | | | | car," 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 in | | | | other kind of cooperation." |
| a statement that the increased sale for the | | | | |
| Malaysian automaker is the result of the | | | | The possible acquisition of Proton by |
| higher income of civil servants. It has been | | | | Volkswagen would mean that the latter will be |
| reported that civil servants in the said | | | | pouring in money to the operations of the |
| Asian country had their wages increased by | | | | Malaysian automaker. It is expected that |
| 7.5 to 35 percent. The introduction of new | | | | Volkswagen will be marketing Proton vehicles |
| auto models is also a reason for the | | | | outside the country while Proton will aid |
| increased attention and thus sales for | | | | Volkswagen in the Malaysian auto market. |