| In the news: Europe's largest automaker | | | | with Mitsubishi Motors Corp. |
| and producer of Volkswagen relay said | | | | unfortunately the partnership didn't |
| that its ongoing talks with Malaysia's | | | | last long and ended in 2004. There are |
| Proton Holdings Bhd are already at its | | | | two other automakers that are discussing |
| advanced stage since it is really | | | | the possibilities of partnership with |
| planning to seek a platform to expand | | | | Proton, the PSA Peugeot Citroen and |
| its market in Southeast Asia. | | | | General Motors Corporations. However PSA |
| According to Kevin Rose, Volkswagen's | | | | Peugeot Citroen has ended talks with |
| head of international sales, "both | | | | Proton last week while General Motors is |
| parties clearly know what they would | | | | said to be still having ongoing |
| want from such an agreement." He also | | | | discussions. Unfortunately, no details |
| said that the company is also working to | | | | were released regarding the talks |
| meet the deadline set by the Malaysian | | | | between GM and Proton. |
| government which is scheduled on March | | | | Volkswagen to Control Production |
| 31, 2007. | | | | According to the Wolfsburg-based |
| Volkswagen has already added capacity in | | | | automaker controlling of local |
| China and will expand in India to boost | | | | production is the key strategy to |
| sales of its Jetta and Passat models in | | | | survive in emerging markets such as |
| two of the world's fastest growing major | | | | Malaysia and India. "For us a brand, |
| economies. It should be noted that just | | | | it's important that we can always say |
| last Proton has again reported its | | | | made by VW, or built by VW. Even in |
| biggest quarterly loss in at least eight | | | | China, where for legal reasons we are a |
| years and has been market share to | | | | minority partner, we still have a great |
| overseas rivals including Toyota Motor | | | | control over the production, assembly, |
| Corp. Proton needs new design and | | | | design of our products, and that's |
| technology in order to become | | | | incredibly important for us," explained |
| competitive not only in Malaysia but in | | | | Kevin Rose. |
| the world and it needs Volkswagen to | | | | It is no secret that initial talks |
| provide it with the help that it needs | | | | between Volkswagen and Proton have |
| to survive. | | | | collapsed January last year after the |
| Ang Kok Heng, who manages 114 million | | | | two companies disagreed on issues |
| stocks at Philip Capital Management in | | | | pertaining to the control of the |
| Kuala Lumpur, said "there are a lot of | | | | company. Fortunately, all issues have |
| things Proton needs to learn in order to | | | | been settled resulting to the resuming |
| be competitive and having a partner will | | | | of talks between the two automakers. |
| help it catch up with the bigger boys." | | | | About Proton |
| Despite the losses that Proton has | | | | Malaysia's government owns 43 percent |
| obtained it has managed to increase its | | | | stake at Proton held by its investment |
| shares by as much as 3.1 percent and | | | | unit, Khazanah Nasional Bhd. It was |
| closed up 5 sen or 0.8 percent at 6.55 | | | | Former Prime Minister Mahathir Mohamad |
| ringgit in Kuala Lumpur, valuing the | | | | who set up Proton in the year 1983 and |
| company at 3.6 billion ringgit or $1 | | | | become the bedrock of the country's |
| billion USD. However in terms of stocks, | | | | manufacturing industry. Former Prime |
| Proton's stocks have declined by 0.8 | | | | Minister Mohamad said last year that |
| percent this year while Malaysian | | | | Proton will collapse without a foreign |
| benchmark index has climbed 7.8 percent. | | | | partner. It was in July 1985 that Proton |
| Proton is not the first Malaysian | | | | launched its first model the Proton Saga |
| automaker that has seek for a foreign | | | | which became the country's most popular |
| partner, the Shah Alam, Malaysia-based | | | | car for taxis. |
| automaker has sought foreign alliance | | | | |