The Edge has more insider news on the Proton-Volkswagen deal that surfaced earlier this week. According to The Edge, it’s sources have informed them that the Proton-Volkswagen deal now has an additional detail to it – Proton will control it’s domestic dealer network, but Volkswagen will control the international network.
As previously reported, a new company will be formed to hold key Proton assets and both Volkswagen and Proton will have shareholding in it – 51% to the German company of course. This share comes at a price – a few hundred million ringgit as working capital to get the company going.
The 49% Proton-held equity will be represented by the key assets that it will be bringing in to the new company – R&D, engineering, manufacturing and the Lotus Group.
A government source also revealed that a successful deal with GM is unlikely because of Proton’s relationship with Iran, something GM has said is not acceptable if anything were to happen between the two companies.
So Volkswagen it is, and hopefully fast!