• Nov 22nd 2007 at 2:02PM
  • 11
After several months of discussions with the Malaysian government about working with Proton, Volkswagen has decided to call it quits. The Malaysian government is the largest shareholder in the local company that also owns Lotus. Lotus has been doing fairly well of late thanks to their continuing engineering work for many of the worlds automakers, and the ongoing success of the Elise lineup. Proton however has been struggling and was seeking a more well heeled partner to work with. For the foreseeable future Volkswagen appears to be out the picture.

[Source: Volkswagen]

Talks with Proton closed

Wolfsburg, 20 November 2007 - Volkswagen Aktiengesellschaft and the Malaysian government have decided to shelve their joint talks concerning cooperation with or participation in the Malaysian automaker Proton Holdings Bhd for the time being. As a consequence, there is at present no foundation for a more in-depth investigation.

Irrespective of this decision, Volkswagen will be stepping up its efforts to review other possibilities for actively engaging in the ASEAN region and further intensifying its sales activities in the region, including such activities in Malaysia. The company remains committed to its plans to establish a sustainable and successful production and sales basis in the South East Asia region.

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    • 1 Second Ago
      • 7 Years Ago
      Thank God.
      Did VW really need another brand?
      They do need to concentrate on quality, not expansion.
      • 7 Years Ago
      Maybe it was the Islamic car that turned VW off.
      • 7 Years Ago
      The other thing is, as shameful as it is to admit - it wasn't several months of discussions, it was actually several years - since 2004.
        • 7 Years Ago
        Paul, I read the Malaysian take on it too in the paper yesterday and you know I beliveve everything that comes from their open, unbiased media outlets.... Sorry mate, but as informed as you may be on the the local industry the local take on things is a bit hard to swallow.
        • 7 Years Ago
        What do you mean local take? There was no "local take".

        No, it was not Volkswagen who pulled out, but our government for some absurd reason no one can understand.

        Both VW global and VW Malaysia issued "disappointed in sudden turnaround" statements.

        The source Autoblog quoted was VW Global's statement in response to the govt pulling out at the last minute.
      • 7 Years Ago
      Tim, we in malaysia also don't know the absolute truth behind the decision. well, let's just say politics and automotive shouldn't mix (read: PROTON). just read the comments in Paul's links and you might understand a li'l bit.

      and John, religion has nothing to do with this. but, you just have to take a swipe at islam don't you?
        • 7 Years Ago
        You are right, the article I read in one of the papers made it seem like the Proton team were the ones making the decision to end talks solely hence my comment.

        Unfortunate i say as the potential outcome could have been good for all parties.
        • 7 Years Ago
        I don't think it was a swipe at Islam. It was a swipe at at a car company associating itself or one of it's products with a religion.
      • 7 Years Ago
      I believe VW was still interested, especially in Proton's manufacturing facilities but it was Proton who said they can move forward by themselves, if you read the story carefully.
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