Volkswagen and Proton Partnership

Volkswagen says it will take at least 7 years of working with Proton before it will consider a more permanent partnership such as taking up equity in the company.

Currently cooperation between the two companies is expected to be in the form of a joint venture company operating in two phases. The first phase will involve component sales, manufacturing and distributing and this will lead to the second phase which involves collaborative design and development.

The Volkswagen Fox

Phase one will kick off in Q1 2006 with the assembly of a localized Volkswagen Passat. Localized version of the Fox MPV is due in Q3 2006 and Fox hatchback in Q1 2007.

In the end, whether VW decides to buy an equity in Proton or not depends on the success of this joint venture partnership.

Most of Volkswagen’s objectives which are increasing presence in the region, and joint development could be achieved using the joint-venture company so there is no hurry for them to purchase equity in Proton.

The details on the arrangement is expected to be finalised by the year-end 2005.

Source: AFX News via, Dow Jones via Yahoo

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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.



  • December on Jul 19, 2005 at 5:58 pm

    first one to comment! yaay!!

    cant wait see the passat in 2006, as u said paul it is the older platform of passat right, not the new one, but then i saw the photoshopped version of the passat, looks pretty neat…

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  • proton again on Jul 19, 2005 at 11:58 pm

    ha ha 2nd person to comment.

    If you have a lot of $$… it is okay to go for the car, otherwise this car price may be attractive, BUT spare parts will kill you.

    wait and see how savvi die !!

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  • there is 2 thing I know that the government should not do or have. (but i will only mention one of the 2).

    Business should be run by businessman, Politician should run the country.

    The problem in Malaysia is that the Politician are running the business, that is why we have all this problem in the country, the politician are more concern on the government new policy effect their personal sale, rather than the country. A new policy approve by the cabinet, it is then design to benefit the business the government is running or the politician themselves, rather then the improvement of the country.

    example, Proton. If this company is run by a businessman instead of politician, there will not need for all the “protection” and poor quality car.

    example, RICE we eat everyday, it is now being monopoly by Bernas, politically link company, they is why the price of rice is very very very very HIGH.

    example, motorcycle price is increasing, why? It is making the rich richer by robbing the poor.

    Malaysia WILL not grow when politician run the business.

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