Proton Ends Talks With Volkswagen & General Motors On Possible Alliance
KUALA LUMPUR, Nov 20 (Bernama) -- Proton Holdings Bhd has ended negotiations with German car manufacturer Volkswagen and General Motors Corporation of America for a possible alliance as the fortunes of the national car maker in terms of sales and exports are improving.
Khazanah Holdings Bhd, as the major shareholder of Proton and the investment arm of the government, said in a statement here today the government has taken note of the recent positive developments at the national car maker.
"The government is, therefore, of the view that Proton's management should be allowed to continue with its plans to further strengthen the company," Khazanah said.
"The issue of strategic alliance, if necessary, can be considered at a later date," it said.
Proton first announced its intention to begin talks with Volkswagen in October 2004 for a strategic partnership while talks were to have started with GM early this year.
Second Finance Minister Tan Sri Nor Mohamed Yakcop, in a briefing here today, said Volkswagen did not walk away from the negotiations nor was there any breakdown in the talks.
Nor Mohamed said the turnaround seen at Proton in recent months was real and as such, the earlier assumptions that Proton has to have a foreign partner to stay afloat was no longer applicable.
He, however, said the government will not dismiss the possibility of Proton having strategic alliances with foreign partners in the future when the time is more appropriate and this will also be premised on the fact that Proton will be negotiating from a stronger position.
Proton's latest model, the Persona, registered strong sales with bookings of about 22,000 units by end-October following its launch in mid-August.
Proton also recently secured a deal to export 5,000 Wajas to Iran and plans are afoot to assemble 40,000 Wajas there annually by 2012.
-- BERNAMA
Khazanah Holdings Bhd, as the major shareholder of Proton and the investment arm of the government, said in a statement here today the government has taken note of the recent positive developments at the national car maker.
"The government is, therefore, of the view that Proton's management should be allowed to continue with its plans to further strengthen the company," Khazanah said.
"The issue of strategic alliance, if necessary, can be considered at a later date," it said.
Proton first announced its intention to begin talks with Volkswagen in October 2004 for a strategic partnership while talks were to have started with GM early this year.
Second Finance Minister Tan Sri Nor Mohamed Yakcop, in a briefing here today, said Volkswagen did not walk away from the negotiations nor was there any breakdown in the talks.
Nor Mohamed said the turnaround seen at Proton in recent months was real and as such, the earlier assumptions that Proton has to have a foreign partner to stay afloat was no longer applicable.
He, however, said the government will not dismiss the possibility of Proton having strategic alliances with foreign partners in the future when the time is more appropriate and this will also be premised on the fact that Proton will be negotiating from a stronger position.
Proton's latest model, the Persona, registered strong sales with bookings of about 22,000 units by end-October following its launch in mid-August.
Proton also recently secured a deal to export 5,000 Wajas to Iran and plans are afoot to assemble 40,000 Wajas there annually by 2012.
-- BERNAMA
posted by SEE FU at 7:52 AM
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