The Malaysian government has decided to end its protection of Malaysia's Proton Motors. In addition to the import duties and taxes levied against foreign carmakers, Proton was also the recipient of tax breaks and "other government incentives."The decision could be seen as a blow to Proton, but Malaysian Prime Minister Abdullah Ahmad Badawi is confident that the carmaker can and is turning itself around. Even though it has lost half of its market share while it was being protected by the government, Badawi said recently "No question of a bailing out. Proton is doing well today... they have a good program, they have secured exports to India, China, Indonesia and the Middle East."
For it's part, Proton's efforts to link up with a foreign car company didn't end well last year. For the moment, it has proposed that the government take an official stake in the company.
[Source: InsideLine]

Late last year reports first surfaced that Volkswagen was interested in taking a controlling interest in Malaysian car maker Proton. But
GM has announced plans to start a joint venture with Malaysia's DRB-Hicom to sell a range of Chevrolets in the country and possibly set-up a manufacturing base for cars and parts for sale in southeast Asian region. Following the breakdown in talks with state-owned Proton earlier in the year, GM then turned to DRB-Hicom to help take advantage of the country's cheap labor and free trade agreements.

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