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