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.