Malaysian national carmaker Proton Holdings , a Malaysian newspaper reported on Friday. The partnership talk was not expected to see Volkswagen taking up a stake in Proton but on a car assembly deal, the Star newspaper reported, citing unidentified sources.
The two companies are considering having the Malaysian carmaker assemble Volkswagen vehicles at its plant in Tanjung Malim in northeastern Perak state, said the report. Officials from both Proton and Volkswagen were not immediately available for comment.
The two companies are considering having the Malaysian carmaker assemble Volkswagen vehicles at its plant in Tanjung Malim in northeastern Perak state, said the report. Officials from both Proton and Volkswagen were not immediately available for comment.
Volkswagen was previously in talks with the Malaysian government, the controlling shareholder of Proton, to take up a stake in the carmaker, but talks collapsed in 2007 for undisclosed reasons.
Shares in Proton rose 17 percent in the past week on speculation that the company, which has seen its market share shrinking in the last few years, was close to securing a foreign partner. Dr.Mahathir is back as Proton's advisor and this will definately boost Proton's business towards a victorious direction.
