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Malaysia Sets December Deadline For Proton Acquisition

Troubled Malaysian automaker Proton iswill be completed by the end of the year, the
looking for a helping hand and the Malaysianofficial said that "that is a reasonable
government is doing its best to get thetarget".
largest European automaker Volkswagen AG to
invest in Proton. Three rounds of talks haveIn the past, Proton is the largest automaker
been going on between the Malaysianin Malaysian auto market. With the backing of
government which owns the majority shares ofthe Malaysian government, the automaker was
Proton and the German automotive giant.able to offer vehicles which are priced
After these rounds of talks, the Malaysiansignificantly lower than their competition.
government is confident that they may closeBut last year, Proton's title as the largest
the  deal  with  Volkswagen  this  year.Malaysian automaker was taken away by
Perodua. Although the latter focuses on the
A top official in the Malaysian governmentdevelopment of small compact cars, the buying
said that they are looking to close the dealtrend in the Malaysian auto market shifted to
by December this year. The deal is expectedsmall cars. One of the most formidable
to give Proton the boost that it needs toopponents of the automaker is Toyota which is
compete well with its competitors in theexpanding  its  operations  in  Malaysia.
Malaysian auto market. It is common
speculation that Volkswagen will be marketingWith market shares dwindling, the Malaysian
Proton vehicles out of the Asian countrygovernment now looks to partner Proton with
while Proton will give Volkswagen a strongeran automaker that has the resources and the
foothold  in  the  Malaysian  auto  market.reputation that can turn around the fate of
the Malaysian automaker. Volkswagen has been
Nor Mohamed Yakcop, second finance minister,known for its aesthetically excellent cars
said: "The good news is we are stilland reliable parts such as VW radiators and
talking. Things are happening. Discussionssuch. The German automaker also has the
are on-going (and) hopefully we will resolvecapital to invest in the Malaysian automaker.
it soon." When asked whether the negotiation



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