Volkswagen may eventually have a new distributor in Malaysia which could end up assembling cars as well.

DRB-Hicom has conformed talks with VW, Bernama reported Thursday, quoting chairman Syed Mohamad Syed Murtaza.

"We have been talking to the company but there has been no outcome yet," he said after the company's annual meeting.

Syed Mohamad said DRB-Hicom is also looking at positioning itself for a new arrangement with General Motors, for which it currently distributes the Chevrolet brand.

"We believe that General Motors is also engaged with other parties, so we are keeping our options open," he said.

DRB-Hicom recently denied a report that General Motors Asia Pacific Holding had terminated the Chevrolet deal.

Bernama quoted Syed Mohamed as saying a GM termination would not impact DRB-Hicom's business as the contribution was not substantial.

"It is very small," he said.

GM is expected to make an announcement by the end of next month, Bernama said.

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