Thursday, November 22, 2007

Proton Drops Volkswagen

KUALA LUMPUR: Proton Holdings Bhd has ended all negotiations for a possible tie-up with Germany's Volkswagen AG and the US-based General Motors Corp.

The national carmaker will not be seeking a foreign partner for now, given an improvement in its sales and exports, Khazanah Holdings Bhd, Proton's main shareholder and the investment arm of the government, said in a statement yesterday.

"The government is 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 a strategic alliance, if necessary, can be considered at a later date." Proton first announced its intention to begin talks with Volkswagen on a strategic partnership in October 2004, while talks were to have started with General Motors early this year.

"Consumers must be given a choice."

He said while Volkswagen was naturally disappointed, it respected the government's decision.

OH CR@P! I was hoping for a tie-up between VW and Proton.

Perhaps the German car maker can show Proton how to build a proper car, or at least show Proton how to make car window that works beyond the guarantee period.

I say it's a BIG LOSS for Proton.