Proton Volkswagen Stake Purchase Updates

Prime Minister Abdullah Ahmad Badawi said yesterday that Proton will sell stake to Volkswagen AG yesterday, causing Proton shares to go up as much as 3.6 percent to an eight-day high of 8.55 ringgit.

Volkswagen wants to lessen it’s dependance on China, where it’s market share fell from 2/3 in 1985 to just 18 percent now. If the deal goes through, Volkswagen will get it’s first factory in South East Asia.

However both parties did not quote any details so far and said talks were still being held.

In other news, the government has promised that the National Automotive Policy will be unveiled in November. I think they originally said end of September.

Source: Bloomberg

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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

  • Philip Quek on Oct 04, 2005 at 4:46 pm

    Well, i just hope that continental car spare parts will be alot cheaper in future. Those buying second hand Audi or VW dun have to worry about the insane original spare part price. cheers

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  • travis on Oct 04, 2005 at 5:31 pm

    i better pray this deal really works, and hope those stupid cronies n that tun madhatter will not stop this deal bcoz of these so called maruah bangsa melayu stuffs.

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  • ah lim on Oct 04, 2005 at 5:41 pm

    waaaa travis u byk tara suka sama tun madhatter (maruah bangsa melayu stuffs- sound like racial)…… hope that both parties will get the benefits……. i don't think that the goverment will let VW control proton……. proton will steal the technology, while VW will steal the market……. hope that the price of GOLF will be the same like SAVVY…….. ahak ahak ahak…..

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  • Wilfred on Oct 04, 2005 at 5:48 pm

    alright….delay again….

    i prefer the super heavy tax on automotive can be abolished

    or drastically lessen….

    or else….i hope that proton will bankrupt

    onli these ways….the G will stop tax the foreign cars + parts so heavily.

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  • rainbow7j on Oct 04, 2005 at 5:54 pm

    it is more likely the price of the VW Golf tyre is the cost of the Savvy hahaha

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  • biothing on Oct 04, 2005 at 6:01 pm

    hiyaa ah lim ahh.. you very funny one. but if GOLF sama price with SAWI I belanja you makan cincalok he he

    u think mahathir will let anyone else control proton? let us see who wins, mahathir of VW saxony county. who looses, ordinary driver like me, who also dreams of driving touareg biodiesel (and future VW hybrid). for sure one..

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  • cameljoe on Oct 04, 2005 at 6:06 pm

    Every encouraging news for now…a move in the right direction…but how big a stake is VW taking? What is the business and technical arrangements? I think the VW-Proton talks will conclude before the NAP comes out. Cheers!

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  • wilfred,

    Malaysia got no heavy tax, but got expensive car;

    WALD declared import price 15,000 , sell at 150000

    kleemann pay declared car price or pay tax 60000, sell at 450000

    hyundai atos paytax 5000 sell at 46000

    kancil pay tax 3000 sell at 25000

    gen2 pay tax 11000 sell at 55000

    avanza pay tax 11000 sell at 62000

    national car price is not expensive, if u do a proper survey on the import duty paid by others car manufacturer.

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  • I only wish that VW can help PROTON become a bigger market player; transfer more new technologi to PROTON, change MALAYSIA as A CAR INDUSTRIAL HUB in South East Asia. Create more job for Malaysian like PROTON do in past 20 yrs

    So Sad, one of our nation own product will go to foreigner's hand.

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  • ah lim on Oct 04, 2005 at 6:22 pm

    . ello BIOTHING how much the price of MIT lancer? remember that wira follow the MIT lancer platform…… so how much the price of WIRA…….. cheapest than the original car (MIT car)…… proton and VW will produce new car which is base on the GOLF model and savvy. The car will be known GOOVY (JOKE only ma…..)…… the N of the day my dream will come true…. using BIODIESEL…….. ahak ahak.. ahak…. NGV depan mata pun tak tau nak guna…… i hope that Proton R&D will invent biodiesel from CINCALOK….. after that BIOTHING will use the biodiesel( from cincalok) to drive TOUAREG….. ahak ahak ahak……

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  • The latest engine from Vdub blows anything under 1.8 liters away.

    Its a 1.4 with a SUPERCHARGER and TURBOCHARGER.

    Puts out 168bhp and 177nm torques (or somethign like that).

    Pretty groovy. But i doubt we'd ever see it here.

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  • Cyrus on Oct 04, 2005 at 8:06 pm

    This is an interesting article. Both Proton and VW are not stupid, they aims for benefits. Proton need technology support and VW need markets and productions line that helps them to reduce cost. However, VW need this contract more than Proton, by setting a production lines in M'sia, they can reduce cost and sell their cars in a much cheaper price in south east asia.. For examples, Toyota and Honda who set up a factories in Thailand, successfully reduce cost and gain a high market share in South East Aisa.. (do u guys know last time a honda city is selling RM90k+ in m'sia before the new model come in??)

    Contract wit Proton may help them to save a lot of money to build their own factory in south east asia. Therefore, i reckon Proton has more bargaining powet than VW do..

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  • DOG THE WAN on Oct 04, 2005 at 8:06 pm

    The dicsussion might be continued until…..2020 Year……Why so long????

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  • rafreez on Oct 04, 2005 at 8:17 pm

    agree with Cyrus n CW I am, hope with this merger proton will have the tech to build new cars such as GenReg (Gen2+Toureg), or SavvGolf (Savvy+Golf) and best of all Lottle (Lotus+Beetle)…hehehehe…bad jokes :)

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  • travis on Oct 04, 2005 at 8:25 pm

    Cyrus, i think proton is more in dying needs of needing a foreign partner like volks, coz it cant stand on its own and its younger brother, perodua is killing their sales. This will immunate the skoda package by the volks and hopefully we can see proton a bigger and better player just like what happended to skoda in europe now.

    Just that hope those stupid cronies n TDM wont stop this deal!!!!!

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  • E-Nabill on Oct 04, 2005 at 8:59 pm

    i tink both parties are keen on each othr…bt thy cant agree on how much shares should vw buy in proton….maybe VW is waiting on the new NAP n see wat insentive thy r getting…i tink thy are gila abt tanjung malim seriously….

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  • Streamyx User on Oct 04, 2005 at 8:59 pm

    Can't wait for

    Volkswagon Saga Aeroback SE

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  • E-Nabill on Oct 04, 2005 at 10:08 pm

    or volkswagon Juara Limited Edition FSI !

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  • Selvenz on Oct 04, 2005 at 10:11 pm

    Lets just wait, im sure there will be a delay on the NAP and PROTON-VW issue

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  • Handsfree on Oct 04, 2005 at 10:12 pm

    is a good news from all malaysian…. we will be getting more advance technology.. can also can create more job .. hopefully.. this round.. proton take this seriously… to improve the QC.. else.. We dont wish to see poor QC WV golf…….. running is defects….

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  • giganet on Oct 04, 2005 at 10:56 pm

    "Volkswagon Saga Aeroback SE "

    hahaha. good one StreamyxUser.

    NAP supposed to be announced beginning of 2005. 3 more months from now, will enter 2006. Let's see where they want to shift the goal posts this time.

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  • MahathirSpeakz on Oct 04, 2005 at 11:03 pm

    Ploton, has been attached to tis mit for 21 yrs stil learn nothing. Now wan attached to vw? Wht to learn? Open de mindset, learn frm CHINA! Did CHINA attached wit any? NO ofcos, but damn gd in duplicating ppl jobs like de CRV & Spark. They r human too. Why they can do tt but our ploton can't?

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  • MahathirSpeakz on Oct 04, 2005 at 11:05 pm

    Who to blame? Think deeply.. spoon-fed garmen, corruptions, bureauracy, short-term mindset. All this gonna kill itself no matter who he attached with.

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  • Chris_the_Germ on Oct 04, 2005 at 11:14 pm

    Technology? VW wants to make money… they want to sell, not to invest in technology.

    Reuters Germany (28th of Sept): VW wants to achieve a market share of 12% in South East Asia; but before they make a decision on buying a share in Proton, they need to figure out their business plan first; models: End of 2005 assembly of last version of Passat (the new one was launched this year); later in 2006 assembly of Fox in Tanjung Malim.

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  • PROTON can't compete with others manufacturer(technologi & cost). ROVER, MINI, MAZDA, NISSAN, MITSUBISHI OR PROTON all need backup from main market player like TOYOTA, FORD, GENERAL, or RENAULT. Furthermore, the PROTON management always take thing for granted, they expect with the proctection from GOVERNMENT, the ppl will keep buying car from PROTON. A national symbol just gone because of the improper management & uneffective maket strategy, also with the GREAT help of our GREAT RAFIDAH AZIZ.

    Look forward for better day, PROTON pathner VW.

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  • ganime on Oct 05, 2005 at 12:23 am

    ooo common man…….Tun is clever then we thought….now is Era Globalisasi…please open minded man…..malaysia oso want to be a part of lucky country…so why certain of u doesnt agree 'bout this…hope malaysia going succes for this…see….we are still save stay in malaysia…

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  • Great Wall Of China on Oct 05, 2005 at 1:45 am

    Apa nak buat???

    inilah Malaysia dari sudut dalam……Orang malas nak kerja,tak ada hati nak buat kerja.Lepak sini,sana…..macam mana nak compete dengan orang????

    Too much goverment subsidies….escpecially to the Bumis…..menjadikan mereka manja…..

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  • 'A national symbol just gone', cw, dont feel so down, if you read the star today, Pak Lah said the national car still on, the 'proton protection' still on, so 'kirim salam' to all those hoping to buy cheap toyotas! wait until 2020!

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  • Streamyx User on Oct 05, 2005 at 5:52 am

    Looks like more broken power windows to come ler.

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  • Im pretty much hoping that the name PROTON wll be dissolved into volkswagen management and the plants used for manufacturing VW cars.

    why? Patriotic Ego aside Proton's achievements despite the heavy protection they recived are totally unreasonable and unquestionably pathetic. Even after 20 years the majority of the parts for the "totally malaysian designed" cars are still made of up chop-up parts from other automobile companies… Savvy engine anyone?

    proton (Potong) is nothing but a dead fly in malaysian economic history. why make people to continue suffer for inferior products? So you can feed the National Ego chest? Or more like personal ego?

    way to go VW, get rid of proton for us, we know you can afford it. No more crappy EON or lame proton service/products. We can kiss all the iswara (keranda) goodbye because we'll be trading them in for GOLFs. Hopefully the iswara will be melted down to produce longkang covers, because thats where they belong.

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  • gegaoff on Oct 05, 2005 at 7:59 am

    once the deal done, i think should have a better future for POTONG. hopefull that this is the time POTONG can change back to PROTON, huh?

    whether is national product is ok, most important, it benefit us, the malaysian. ok?

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  • epalhead on Oct 05, 2005 at 5:32 pm

    elo travis…..(racial pethatic dude)

    don't cross over the line dude…..Do u have a problems with malays????

    Watch ur words dude…….watch out….

    Epal.

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  • travis on Oct 05, 2005 at 6:46 pm

    epalhead:

    i dont mean to be radical, but i did not made any radical statements or shhoting malays or stuff. I onlyu make two posts here n i only wish this deal will go on and hope those proton cronies did not stop over this deal.

    Did i make any radical bashing, i believe some posters but me made it. Pls read carefully before pointing fingers. Thanks.

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  • Cyrus on Oct 05, 2005 at 10:44 pm

    Travis,

    Dont forget VW suffer more shares lost than Proton.. a fall inChina market share from 2/3 down to 18% is enough to put them in desperation of getting the contract, in addition, the huge market in South East Asia would make them even more eager to get into the contract. However, Proton stil need and desperate for technology support to build a better car, but dont forget there is few hundreds automobiles car maker besides VW, for example, GM (less possibility because Mahathir hates Amercan~), Fiat, Ford, they all are potential but not as desperate as VW towards the contract.

    There u go, mate ~

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  • travis on Oct 05, 2005 at 11:54 pm

    thanks for pointing that out cyrus!

    Like the title from the editor's note in this month autocar asean "Why proton should in bed with volkswagen", lol!!!!

    well we can conclude that this is a win win situation for volks to gain market share in asia after losing out in china and for proton as it need a foreign partner to survive. Do note that volks is interested to provide another "skoda package" to proton after the success of skoda in europe. Perhaps will we see proton as the skoda of asia?

    interestingly i read once in autocar asean regarding lotus saying that lotus may gain independance frm proton, so will volks take over lotus????

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  • Cyrus on Oct 06, 2005 at 3:35 am

    Travis,

    yeah.. i really wish to see VW and Proton can get into contract and cooperate together. As a consumer, we will definitely gain benefits from that. First thing, VW cars will be selling much more cheaper after they establish an assembly lines in M'sia, 2nd, Proton will get technology from VW and produce a better car, in terms of features, design and quality.

    I would hv no comments on the "skoda package" and the future of lotus. Lotus act as a core technologies support to Proton since the day Proton bought it, in fact, they hv a development departments located at West M'sia ( i think is somewhere in K.L), and this departments is here mainly to assist Proton in technology and designs development. i hv really no ideas what Proton is going to do to "him" ~ we will see ~

    CheeRs ~

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  • Guys this is the internet.

    Race bashing here is not going to make u cool, nor threatening via text in the comment section is going to help. (Im just saying lol)

    Ha ha im using the internet!

    Malaysia Bolehhhhhhhhh

    gogo VW

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  • VM together w Audi are the pioneers to go into China for FDI.

    And now, VW loosing ground…gee, probably, Audi is next to suffer.

    In China, u get to see both new & old Passat taxi roaming on the roads. Buick as well.

    Tech on engines- i doubt VW will be willing. Mayb more on quality & design.

    Cost of efficiency is wat they are seeking, lower mfg cost to maintain the current marketshares. Y would a foreign firm wanna invests here if they have less gains than loses??

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  • epalhead on Oct 06, 2005 at 8:47 pm

    Let me remind u Travis:

    "i better pray this deal really works, and hope those stupid cronies n that tun madhatter will not stop this deal bcoz of these so called maruah ""bangsa melayu stuffs.""

    Why racial issue should appear in a car-related blog???huh travis…

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  • travis on Oct 06, 2005 at 10:27 pm

    my mistake, no more radical statement from me ok?

    sorry for all!

    ok back to topic k guys?

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  • frossonice on Oct 07, 2005 at 7:39 am

    Help PAUL by not making any racist remark if you guys really loves his work.

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  • FiveElements on Oct 07, 2005 at 12:04 pm

    Yeah man, just sell everything….sell 100% if possible.

    WHo needs Potong Sagua, Potong Sawi, Potong Satay, Potong whatever….WE DONT NEED THAT!!!!

    What National Pride??? What National Car??? Who Said We are proud of it??? Tun Mahathir said that???

    Just sell everything, stop all protection bullshit, stop all AP bullshit, and be fair to the rakyat.

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  • soya bean on Oct 25, 2005 at 11:06 am

    perwaja steel, potong, mahathir really sukks the rakyat's money dry just to fulfill his idioctic fantasies….now the "malaysian boleh" spirit is trying to send the "first malaysian into space"…what a joke…it is another total waste of taxpayers money..well done…juts like the stupid "malaysian book of records", where u will find all the stupidist and pathetic records" that no one really carres (eg longest satay kenduri hahahaha)…look at china….not only they recently became only the third nation to send a man into space, but they POSSSES THE CAPABILITY…unlike malaysia, who is just hitching a ride..we dont even have the basic space technology knowledge..

    "cincalok fuel"…????? hahahaha thats very funny…maybe even durian dodol fuel

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  • soya bean on Oct 25, 2005 at 11:09 am

    they government will never let VW take a maojority stake control becoz they knew that VW will SACKED ALL THOSE PATHETIC LAZY SERVICE PEOPLE AND DESIGNERS and those bastardds who stick the "lulus potong" stickers on every bloddy potong..so there lies the problem…VW will not be that stupid the buy potong but cant have a say in the supply-chain

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  • johnyong5933 (Member) on May 23, 2007 at 9:17 pm

    sigh.. nowadays proton really suck up…

    starting they used the mitsubishi engine.. its ok.. and than they changed to the unwanted technology cam-pro..tats really stupid..technology ppl dun use they buy and than they sell to malaysians… disappointing.. LOCAL CAR still not good.. and the design, i'll say proton saga for example.. 20 years oledi they still using the same model,same car shape and even same engine!!

    ape ni?? tipu rakyat ke ape? Disappointing to proton.

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