| Troubled Malaysian automaker Proton is | | | | will be completed by the end of the year, the |
| looking for a helping hand and the Malaysian | | | | official said that "that is a reasonable |
| government is doing its best to get the | | | | target". |
| largest European automaker Volkswagen AG to | | | | |
| invest in Proton. Three rounds of talks have | | | | In the past, Proton is the largest automaker |
| been going on between the Malaysian | | | | in Malaysian auto market. With the backing of |
| government which owns the majority shares of | | | | the Malaysian government, the automaker was |
| Proton and the German automotive giant. | | | | able to offer vehicles which are priced |
| After these rounds of talks, the Malaysian | | | | significantly lower than their competition. |
| government is confident that they may close | | | | But 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 government | | | | development of small compact cars, the buying |
| said that they are looking to close the deal | | | | trend in the Malaysian auto market shifted to |
| by December this year. The deal is expected | | | | small cars. One of the most formidable |
| to give Proton the boost that it needs to | | | | opponents of the automaker is Toyota which is |
| compete well with its competitors in the | | | | expanding its operations in Malaysia. |
| Malaysian auto market. It is common | | | | |
| speculation that Volkswagen will be marketing | | | | With market shares dwindling, the Malaysian |
| Proton vehicles out of the Asian country | | | | government now looks to partner Proton with |
| while Proton will give Volkswagen a stronger | | | | an 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 still | | | | and reliable parts such as VW radiators and |
| talking. Things are happening. Discussions | | | | such. The German automaker also has the |
| are on-going (and) hopefully we will resolve | | | | capital to invest in the Malaysian automaker. |
| it soon." When asked whether the negotiation | | | | |