| The shares of the troubled Malaysian carmaker | | | | ringgits to get the company started. |
| Proton has increased slightly last Monday after reports | | | | Proton's state investment arm Khazanah Nasional is |
| has come out that its deal with Europe's largest | | | | the controlling shareholder in proton owning 42.74 |
| automaker and producer of top-of-the-line quality VW | | | | percent stake. Meanwhile the state pension fund EPF |
| Beetle parts is getting closer to a deal. | | | | and the national oil firm Petronas have a share of 12.07 |
| Analysts said that such positive news matched with a | | | | percent and 8.84 percent respectively. |
| plan of the government to remove cars that are 15 | | | | Khazanah's Managing Director Azman Mokhtar has |
| years old and older have lured investors to the | | | | set the end of this year as the deadline for the |
| company. According to the Edge business newspaper | | | | completion of the deal with Volkswagen. |
| last Monday, "Malaysian representatives of Proton's | | | | Analysts have also attributed the increase in Proton |
| stakeholders have inched closer to a final deal with | | | | shares to government programme which will scrap old |
| Volkswagen." | | | | cars giving Proton the opportunity to increase its sales. |
| Proton's shares were up by 0.05 ringgit or 0.86 percent | | | | According to the Edge business magazine the said |
| and close at 5.85 ringgit after reaching as high as 6.10 | | | | programme was aimed to boost Proton's sales. |
| ringgit in late trade. | | | | Quoted on the magazine: "It has been decided that |
| Volkswagen met with Proton for the third time in | | | | those who voluntarily scrap their cars will be offered a |
| Germany recently after its earlier meetings in Thailand | | | | subsidy to buy a new Proton car. The subsidy will be |
| and the United States. The foreign tie-up with Proton is | | | | on a scale with a maximum of 5,000 ringgit." |
| very important for the Malaysian automaker in order | | | | Last Monday Aseambankers has also expressed its |
| for it to stop the decline in its market share and to stop | | | | plan to reinforce Proton's share price and was quoted |
| incurring further losses. | | | | by the Edge saying, "although we remain cautious of |
| The Edge business newspaper has also pointed some | | | | Proton's ability to deliver more than marginal |
| details of talks wherein Proton will still be controlling its | | | | profitability." |
| domestic distribution network while Volkswagen will | | | | It can be noted that Proton has lost its status as |
| take care of the international distribution. | | | | Malaysia's biggest-selling automaker to its rival Perodua |
| The Edge has also stated that Volkswagen may be | | | | and just recently has reported net losses reaching as |
| required to cash out for its 51 percent equity in Proton. | | | | high as 591.36 million rinngit or $172.4 million through |
| Volkswagen will have to invest few hundred million | | | | March 2007. |