| Europe's largest automaker is expected to net | | | | said. Abdullah also said that they are looking to |
| Malaysia's national automaker Proton. The latter | | | | sign a deal with the German automaker soon but |
| has seen sales reduced as competition in the | | | | they will not be pushing Volkswagen to take |
| Malaysian auto market heats up. With the | | | | immediate actions. "We want to have this decision |
| expansion of operation of the auto industry | | | | as soon as possible but they have to take time. I |
| heavyweights like Toyota in Malaysia, Malaysian | | | | cannot force them to hurry up," he added. |
| car buyers have seemed to move away from | | | | Forbes also reported that a certain finance |
| Proton. The Malaysian automaker's limited lineup | | | | ministry official commented that they are |
| and poor quality of cars pushes customers | | | | expecting to have the deal closed as early as |
| further away. | | | | next month. "Malaysia is trying to settle it by |
| In an effort to save the ailing automaker, the | | | | November. This is what they intend to do," said |
| Malaysian government has been looking for a | | | | the official. There have also been reports that |
| major automaker which can help Proton back to | | | | Volkswagen is close to acquiring 20 percent of |
| profitability. Volkswagen and General Motors are | | | | Proton's share. |
| reportedly interested in acquiring the Malaysian | | | | Malaysia's The Edge reported that: "Volkswagen is |
| automaker. But the Malaysian government clearly | | | | also seeking management control and will require |
| favors Volkswagen over General Motors. Talks | | | | the government to underwrite any losses at |
| between the Malaysian government and the | | | | Proton for at least three years." This means that |
| largest European automaker has been going on | | | | Volkswagen is being careful with their deal with |
| for three years and it is expected that the will | | | | the struggling automaker. With that cushion, they |
| reach an agreement before the end of the year - | | | | are protected if their first years with Proton |
| as early as next month. | | | | prove to be unsuccessful. |
| Recently, Forbes reported that the European | | | | But with the involvement of Volkswagen with |
| automaker is seeking management control over | | | | Proton affecting the Malaysian automaker |
| Proton. This is one of the terms that Volkswagen | | | | positively, can be expected that Volkswagen can |
| is apparently pushing to the Malaysian | | | | make money with the Malaysian automaker. |
| government. If the Malaysian government gives | | | | When the third round of talks between the |
| consent to the European automaker, the latter will | | | | Malaysian government and the German |
| be in charge of one of the managerial functions. | | | | automaker was held, the value of Proton stocks |
| Volkswagen will be the one overseeing action by | | | | has increased. |
| setting standards or goals, measuring actual | | | | Under the agreement, it is expected that |
| performance of the company and taking | | | | Volkswagen will be marketing Proton vehicles on |
| corrective actions if goals are not met. | | | | the global auto market. The Malaysian automaker |
| Prime Minister Abdullah Ahmad Badawi who is also | | | | is now gaining popularity as it is hooked up with |
| the financial minister according to Forbes said that | | | | the German automaker. It is also expected that |
| the German automaker is looking for that | | | | VW head gasket -equipped Volkswagen vehicles |
| managerial function. "They have been discussing | | | | will be sold by Proton in Malaysia where they |
| about it but we have not yet decided on that," he | | | | already have a strong dealership base. |