Proton-Volkswagen Talks Continue

Proton’s talks with Volkswagen are still on-going while analysts ponder over the possible outcomes.

The Government will not give up the 42.7% stake that it has in Proton through it’s investment arm Khazanah Nasional Bhd. So where will the shares that Volkswagen will buy come from?

Analysts say one option would be to issue new shares to Volkswagen. Another way was something similiar to what Perodua did when Daihatsu of Japan took up stake in the company a few years back. Perodua sold a major stake to Daihatsu which comprised of it’s manufacturing division.

This way, Volkswagen would have control over the manufacturing division while Proton would still maintain full ownership of distribution division Proton Edar to maintain identity as the national car project.

Ultimately a positive outcome would do wonders for Proton’s manufacturing division because of the larger economies of scale with Volkswagen cars.

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • stupid rafidah on Aug 02, 2005 at 10:12 pm

    good i hope they do the same way they did it with p2,like that we will have better cars,think of the possibilities a golf gti+satria gti,whoopy…..

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  • stupid rafidah on Aug 02, 2005 at 10:14 pm

    no no wrong combination,proton was never good, how about a golf gti with mitsu's tech on light bodied cars with lotus tuning,that would be a whooping street car fit for everyday driving,hope the deal suceed and a car like that comes out

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  • akari on Aug 03, 2005 at 12:54 am

    golf gti very nice @@ at penang here got a new wald shop, there have a red colour golf gti, very nice, i will grab a look everyday while on the way to work =P btw RM240+k for auto's is impossible + crazy for me, =(

    *waiting proton purchase by VW*

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  • sell la…… why holding it.

    :)

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  • Accord Kia on Aug 03, 2005 at 1:37 am

    sell la….still wan to naik harga…. u think who you are!!!

    got people wan to buy is your lucky day loh…BRO

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  • Achtung!!! on Aug 03, 2005 at 2:23 am

    Das Ist Proton!!! Just look at their arrogance, believing that they can continue on their own way merrily ripping off the public with cheap 'pressed milo tins – held together with multiple layers of paint and propaganda' 4 wheeled moving disasters!!!

    I think P1 is more afraid that Volkswagen will confirm that – Yes, Proton cars last time were really lousy in quality – than they are afraid about some Mat Salleh sitting up there and making their lives more difficult. Face very important wan you know!!!!

    Somebody has got to do CV (Corrosion Validation) on their brains, while making them watch the movie called No Pain = No Gain.

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  • eAthena-Xeir4s on Aug 03, 2005 at 3:25 am

    Nice move I'd say..Far more better than VW Obtaining Proton's marketing div and selling stupid Proton's.

    I'd like to see actual VW designing and quality rather than names only.

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  • I'm pretty sure i've read somewhere that Khazanah is not allowed to keep such a big stake in Proton and has to sell some before the end of the year.

    Something doesn't make sense here… either it's me or Khazanah :) ok… ok.. it's probably me….

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  • I found back the article I was refering to:

    Khazanah has exceeded the number of shares that they can hold without making a general offer, they got an exemption for one year but soon they will have to sell.

    So I seems like the government has no other choice but to to give up part of the 42.7% stake that it has in Proton.

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  • neurra on Aug 04, 2005 at 12:31 am

    sell sell sell it… come on proton.. it'll be fine.. more than fine for your own good.. =D

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  • ah fook on Aug 04, 2005 at 8:24 pm

    no…dont sell it!…unless u wanna see another MG Rover rape by BMW history happen once again…typical aryan…bought Rover..rape their Land Rover and Mini brand…and dump the lousy naked Rover to British…same will goes to Proton..the aryan will rob the Lotus and MV Agusta..and dump the naked Proton..

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  • ah fook said,

    August 4, 2005 @ 12:24 pm

    no…dont sell it!…unless u wanna see another MG Rover rape by BMW history happen once again…typical aryan

    —> Agreed fook…ppl only interested on the money making tools…why bother to take the milo tin and spoil they good names? make sense!

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