Proton and Volkswagen are close to sealing a tie-up that would see VW take a 51% stake in a new company, according to a Malaysian newspaper report.
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Citing unnamed sources, The Edge Financial Daily said a new company would be created which will see VW controlling key operations with the 51% stake.
Proton Holdings will hold the remaining 49% in the new company, which would encompass key assets including British subsidiary Lotus, as well as manufacturing, research and development, and engineering activities, the report said.
A 42.7% stake in Proton Holdings currently held by the government’s investment arm, Khazanah Nasional, may also be taken over by state-linked conglomerate Sime Darby, The Edge reported.
The newspaper said details were expected to be finalised at a meeting underway in New York between representatives from Volkswagen, Khazanah, Sime Darby and the prime minister’s office.
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By GlobalDataWith Volkswagen’s expertise and platforms, the new company is expected to launch new Proton models under the Malaysian carmaker’s brand name while most of the existing ones will be phased out, it said.
