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