The Mirror Image Of Myself

Breaking News: Proton To Be Part Of Volkswagen (sort of)

Posted in News by zenmaster on November 10, 2006

Volkswagen AG Is Going To Buy 51% Stakes In Proton’s Manufacturing Plant

The government will decide within three months the possibility of giving approval for German carmaker Volkswagen AG (VW) to take up a 51% controlling stake in Proton Holdings Bhd’s manufacturing operations.

Second Finance Minister Tan Sri Nor Mohamed Yackop said on Nov 10 that the government was also talking to many carmakers including VW and Peugeot, on strategic partnership for Proton.

He added the government also had an open mind on the sale of an equity stake in Proton and it would it do whatever it takes to ensure Proton remained viable.

He added the government’s priority was to ensure Proton would survive and be prosperous.

On Nov 9, Prime Minister Datuk Seri Abdullah Ahmad Badawi said the government is considering giving approval for VW to take up a 51% controlling stake in Proton’s manufacturing operations.

The FinancialDaily reported on Nov 9 the government is believed to have finally decided on giving foreign parties a 51% control in Proton’s manufacturing operations, with German VW as a potential partner.

The report stated negotiations resumed with VW last month. Proton and VW ended talks early this year after they failed to agree on issues such as control of the company.

The arrangement could be similar to that between second national carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and its principal Daihatsu Motor Co Ltd of Japan.

The report added Proton would handle the domestic distribution arm but a foreign partner would run the manufacturing division as it would bring in technical expertise and help expand Proton’s production for export

Source: The Edge

Looking forward for the locally made Volkswagen marquees, specifically, Volkswagen Golf R32.

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