Saturday, May 26, 2007

VW in talks to establish regional facility in Indonesia. Proton... how?

Proton and its dependents might have have missed the boat.

VW-Proton Talks Sputter
Date posted: 05-25-2007

KUALA LUMPUR, Malaysia — The Malaysian government, which controls automaker Proton, said it will not provide a financial bailout for the struggling company, now that it appears discussions have broken off once again with Volkswagen.

Both VW and General Motors had expressed an interest in acquiring a stake in Proton, but neither automaker made an offer by the government's late-March deadline.

Instead, VW now appears to be looking at establishing a regional assembly facility in nearby Indonesia, according to government officials in Jakarta. Among the company's alternatives is a tie-up with a local assembly partner in Indonesia.

What this means to you: Once an automotive power in Southeast Asia, Proton continues to experience a waning of its fortunes as regional competition intensifies.

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