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