Volkswagen partnership with Proton likely to happen sooner than expected

Proton, the Malaysian car manufacturer, is looking for a foreign investor who is willing to buy 43% stake in the company which is currently owned by the Government of Malaysia. Although there has been no confirmation from the Volkswagen camp, news about a partnership with Proton seem to be hogging the limelight on automobile websites and auto magazines.

Reports and news that have surfaced, suggest the Volkswagen is all set to partner with Proton and establish a production facility in Malaysia. A report by Bloomberg reveals that Volkswagen bigwigs are considering the Asian automakers partnership after closely scrutinizing their production facilities.

It’s a known fact that Volkswagen is on a downward spiral in the Asian car market, except in China. By partnering with Proton the automobile company will definitely strengthen its position in Southeast Asia. Volkswagen wants to strengthen its position in countries like Thailand and Indonesia. By establishing a production facility in partnership with Proton, the popular automobile company will be able to execute its ambitious plans and strategies for the Asian market with relative ease. Will a partnership with Proton ever happen? And even if it does will Volkswagen be able to gain a strong foothold in Southeast Asia?

Proton was founded back in 1983 and was the only car manufacturing company in Malaysia until Perodua came in 1993. With the help of Volkswagen, Proton will be able to take control of the Malaysian auto industry in a much better way. Malaysian Trade Minister, said: “What we are looking for now is for somebody to buy the government-owned shares and that somebody should be able to provide the right kind of technology.”