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VW and Proton partnership talk breaks down...again

By SYF77 on 09 Jun 2010

Attached Image: 9071121_006_1M.jpg
Talks between Volkswagen and Malaysian automaker Proton have broken down without the two sides coming to an agreement on a partnership, according to multiple published reports. The decision by Volkswagen to pull out of talks in favor of "other priorities" led to a drop in Proton's stock by over five percent.

This is actually the second time the German automotive conglomerate and Proton held meetings. The two sides first discussed the development of a strategic partnership back in October 2004, with talks fizzling-out in January 2006, before totally collapsing by November 2007.

The dive in Proton's shares during Asian stock trading appears to demonstrate investor uncertainty in the company's ability to grow and develop. "Proton's need for a strategic partner to leverage on to enter the global export market is crucial at this juncture before Proton gets further left behind by the competition," firm OSK Research told Forbes. Of recent years, there seemed to be a lack of new proton models in Singapore. Will Dr Mís pet project 20 years ago continue to survive? I guess we will know very soon.

Volkswagen, Proton, Partnership

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Written by SYF77
I have been a car fanatic since 1989, when my father was changing our family car then to a Toyota Corolla 1.6 GL fitted with a Twin Cam 16 valve engine that was carburetor-fed, a big deal back in those days. The automobile technology and industry fascinates me and I hope to broadcast these interesting developments to everyone out there through this blog.

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Heartbreakid Jun 09 2010 08:17 PM
There are two sides to this and the previous talks. From Proton side, it seems like a losing deal because VW is making use of its facilities to build VWs to asean markets and taking over Proton. These are discuss in forums, which is true? I won't know.

All I know is proton is stupid enough. Very simple, because it is bloody slow in technology advancement, bloody slow in introducing replacement models, bloody slow in introducing different types of classes of vehicle i.e. SUV, MPV (just kick off). Their quality though improve, but their reliability is doubtful... Lastly is their attitude, always talk in advance and very little show...

Current Proton owners may be unhappy seeing my statements, but I'm sorry. Because I was once a proton owner, driving over 10 years on a WIRA and over a decade, WIRA are still selling... I was seriously disappointed by the advancement by Proton, even much more are their local country mates...
Heartbreakid Jun 09 2010 08:21 PM
I just thought that Proton are putting themselves in a losing end, only to be supported by their Gov... As the above mention regarding their progress, it is a very good deal to collaborate with VW rather than sicking to their conservative mindset and playing the technology catch up games and still losing... What a pity... I thought proton, if making a deal with VW, it would establish their name to a higher stage and making their cars much, much better... See Skodas? Seat?
Kangadrool Jun 10 2010 01:56 PM
How to win-win when what they care is to potong others.
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