| VW returns as a suitor for 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. 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. source - bbc.co.uk http://news.bbc.co.uk/1/hi/business/6983968.stm |

