VW poised for stake in Proton: Report

VW poised for stake in Proton: Report

FRANKFURT: German automotive concern Volkswagen is now poised for
a possible buy-in at the Malaysian car group Proton in the wake
of the pullout by Mitsubishi Corp., the daily Frankfurter
Allgemeine Zeitung (FAZ) reported on Thursday.

The paper noted that VW and Proton Holdings Bhd agreed in
October 2004 to cooperate more closely.

In the meantime, VW inspectors have carried out a quality
analysis of Proton's components suppliers, determining that 49
out of 179 suppliers do not meet international standards.

The FAZ said that this help by VW in itself was new for
Proton, for in the past the Mitsubishi company had not provided
the Malaysian company with any high-tech support.

The Mitsubishi group at one point had held over 15.8 percent
of Proton. But in the spring of 2004, Mitsubishi Motor Corp. sold
its 7.93 percent stake, and then at the end of the year trading
company Mitsubishi Corp. sold its 7.93 percent holding. -- DPA