A piece of news by Edmunds Inside Line carries some very bad news. Edmunds picked up the story of the government saying it will not be providing any financial bailout to Proton, whose cash reserves are expected to be depleted by early 2009 or so. What Edmunds has added on is what it’s heard from some government officials of Indonesia in Jakarta.
Edmunds reports that Volkswagen has abandoned Proton tie-up plans altogether, and will be looking at establishing a regional assembly plant in Indonesia instead, or tie-up with a local assembly partner in Indonesia.
Whichever it is, it looks like another Geely tragedy has happened – the NAP has chased away another potential investor to Indonesia. If what Edmunds says is true, the only way for Proton to partner up with Volkswagen somehow is jointly operating the PT Proton Tracoma plant in Indonesia. Perhaps that is why Proton bought out all 100% of PT Proton Tracoma shares back in January 2007?
Of course, the Edmunds article mentions no concrete sources, so we just have to hope, and hope, and hope… that something good will come out of all of this.