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