<TABLE cellSpacing=0 cellPadding=0 width=629 border=0><TBODY><TR><TD colSpan=3>VW returns as a suitor for Proton
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Will Proton allow VW to make its presence felt in Malaysia?
</TD></TR></TBODY></TABLE><!-- E IIMA --><!-- S SF -->Volkswagen has revived its interest in Malaysian carmaker Proton.
VW has arranged imminent talks with the state investment body controlling Proton to discuss either joint projects or taking a stake in the company.
The German carmaker is keen to form an alliance in Asia, where it faces increasing competition from regional car manufacturers.
Proton sees a tie-up with VW as a means of accessing new technology and expanding its presence outside Asia. <!-- E SF -->
Long-term target
Proton has already held tie-up talks with both Peugeot and VW.
Earlier talks with VW collapsed in January 2006, after the extent of state control over Proton proved to be a stumbling block. It was believed that the Malaysian government was reluctant to relinquish its "golden share" in Proton. This gives the state a right to veto any plans for the company it may disagree with.<!-- E BO -->
source - bbc.co.uk
BBC NEWS | Business | VW returns as a suitor for Proton
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</TD></TR><TR><TD vAlign=top width=416><!-- S BO --><!-- S IIMA --><TABLE cellSpacing=0 cellPadding=0 width=203 align=right border=0><TBODY><TR><TD>
</TD></TR></TBODY></TABLE><!-- E IIMA --><!-- S SF -->Volkswagen has revived its interest in Malaysian carmaker Proton.
VW has arranged imminent talks with the state investment body controlling Proton to discuss either joint projects or taking a stake in the company.
The German carmaker is keen to form an alliance in Asia, where it faces increasing competition from regional car manufacturers.
Proton sees a tie-up with VW as a means of accessing new technology and expanding its presence outside Asia. <!-- E SF -->
Long-term target
Proton has already held tie-up talks with both Peugeot and VW.
Earlier talks with VW collapsed in January 2006, after the extent of state control over Proton proved to be a stumbling block. It was believed that the Malaysian government was reluctant to relinquish its "golden share" in Proton. This gives the state a right to veto any plans for the company it may disagree with.<!-- E BO -->
source - bbc.co.uk
BBC NEWS | Business | VW returns as a suitor for Proton
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