Volkswagen AG and Proton Agree to Co-operate

KUALA LUMPUR, Jan 27: Proton and Volkswagen AG (“VW-AG”) will proceed to coorperate on specific projects that include the supply of products and components by the German auto maker to Malaysia’s Proton.

This was confirmed by VW-AG Thursday by way of an official letter it had sent to Proton in Kuala Lumpur. With this understanding, PROTON Holdings and VW-AG have now decided to bring to an end the proposed collaboration envisaged under the MOU signed by them in October 2004.

Both parties are now expected to move quickly to hold technical discussions to negotiate details of possible implementation.

A Proton spokesperson said, “We have moved past the issue of VW-AG eyeing any kind of shareholding and we are now able to work on specific initiatives that complements PROTON’s capabilities and current range of products.

“The cooperation will commence with these specific projects in the areas of technical and engineering, training and systems as well as other commercial projects, including the possibility of supporting VW-AG to explore the Malaysian dealers’ network.