VW any agreement to buy stake in Proton is still 'far away;<\/p>\n
Jasbant Singh, Associate Press, Kuala Lumpur, Malaysia<\/p>\n
Germany's Volkswagen AG said any agreement to buy a stake in
\nMalaysian national car maker Proton is still \"far away,\" but the
\ntwo companies were still in talks to work together to make cars
\nin Southeast Asia, a news report said on Thursday.<\/p>\n
Speculation has been rife that Volkswagen will buy a
\ncontrolling stake in the struggling automaker and that the deal
\ncould come with management control of Proton.<\/p>\n
The German car maker said it is in talks with Proton and
\nKhazanah Nasional - the government's investment arm that controls
\nProton - to jointly produce new models for the lucrative
\nMalaysian and Southeast Asian markets, the New Straits Times
\nreported, citing an unidentified Volkswagen official.<\/p>\n
\"We are still far away from any agreement on the partnership,\"
\nthe official told the Straits Times. \"This is with respect to the
\noperational collaboration as well as any financial involvement of
\nthe VW Group.\"<\/p>\n
Proton officials were not available for comment.<\/p>\n
Media reports have said Khazanah, which owns 42.7 percent of
\nProton, is in talks with the Wolfsburg, Germany-based automaker
\nto sell up to 30 percent of the Malaysian company.<\/p>\n
Khazanah has confirmed that discussions were being held on
\nProton's \"proposed alliance with Volkswagen\" but said it does not
\nhave any plans yet to divest its existing stake in Proton.<\/p>\n
The Straits Times said Volkswagen and Proton have agreed to
\nlaunch two car models, the first by the end of this year.<\/p>\n
Talks between Khazanah and Volkswagen underscores a government
\nplan to end its control of state-owned companies facing
\ncompetition from overseas.<\/p>\n
For more than two decades, Malaysia poured billions into
\nProton to turn it, with Japanese help, into the country's top
\nselling car behind stiff protective barriers.<\/p>\n
But globalization is forcing Malaysia - Southeast Asia's
\nbiggest passenger car market with annual sales of 487,000
\nvehicles - to change. Proton is unable to match the quality of
\nforeign competitors - something that is exposed with the lowering
\nof import barriers.<\/p>\n
A deal with Volkswagen will give Proton access to German
\ntechnical and management know-how.<\/p>\n
Volkswagen, meanwhile, will get an opportunity to grow its
\nmarket share in Asia, which last year accounted for just 6.6
\npercent of its 5.1 million sales.,<\/p>\n
Proton and Volkswagen last year agreed to work together,
\nwithout committing to an equity relationship.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/vw-any-agreement-to-buy-stake-in-proton-is-still-far-away-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}