Talks to save Proton failed

According to a report by The Edge, talks between Proton Holdings Bhd car manufacturers and the largest automobile manufacturer in Europe, Volkswagen AG - and have the parts manufacturer of the famous Volkswagen Van --- which began last year, not in what hopes the Malaysian Government pushed.

The newspaper reported that officials had the Proton and Volkswagen met several times, but no concrete agreement has been completed. The newspaper added that the talks were not good and it seems that the German automaker something "cool" and seems less busy lately.

The newspaper, a source familiar with the situation quoted as saying. "This delay could reveal some doubts," The Malaysian government is under pressure to show details of the partnership for loss-making Proton, which has lost its status, car makers announce in the country best-selling rival Perodua. The government believes that can help new partnership with Volkswagen, Proton him to recover.

Last week, Proton's third consecutive quarter of losses in the Internet to increased competition and weak sales. The company reported a net loss of 281.45 million for the third quarter ended Rgt December as the annual income in comparison, he has a year ago for $ 86,510,000 Regiment

Second Finance Minister Mohamed Yakcop said the government would be an announcement at a strategic partner proton release this month. No one knows whether it would be Volkswagen or any other company. But the newspaper The Edge "If this timetable is strictly adhered to, could sources say General Motors, the biggest carmaker in the world, is a preferred partner for Proton."

The main aim of preventing a partnership with Proton foreign car manufacturer that expects a further decline in its market share as competition heats up. It should be noted that when the news of a possible partnership with Volkswagen shares of Proton has increased, but not after the news was confirmed, the company is Proton shares plunged to have fled.

Apart from Proton, Volkswagen has also in talks with GM and PSA Peugeot Citroen in France and around three Malaysian automotive firms have been expressed interest in buying shares in the company. It should be noted that the Malaysian government are 59 percent of Proton, including a 43% Khazanah Nasional, the investment arm of the government owns the property.