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Volkswagen has announced cancellation of its plans to work with Malaysia’s Proton to build and sell VW’s for the
local market.
Volkswagen entered a long-term strategic partnership with Proton in 2004, as a way for VW to
enter the Southeast Asian market without major investment.
VW chief executive Bernd Pischetsrieder (shown
at right with Malaysian officials at the 2004 signing of the partnership agreement), announced to investment analysts
Wednesday that VW was unable to come to an agreement with Proton and the Malaysian government (which controls the
company).
A webcast of the analyst’s conference is available here.