Sources familiar with the matter have said that Proton is unlikely to go with the equity stake exchange deal with Volkswagen AG, instead choosing to go with a tech agreement instead.

If the tech deal goes through, this will mean Volkswagen will take 51% control of only Proton’s engineering and manufacturing units and not a stake in Proton Holdings Berhad.

Proton had informed Bursa Malaysia on Monday that there was no significant breakthrough or developments in it’s talks with Volkswagen so far.