The managing director of Malaysia’s state investment arm said on Wednesday that national automaker Proton was still considering partnerships with either Volkswagen or General Motors, and would stick to an end of March deadline to make its decision.
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According to the Associated Press (AP), Khazanah Nasional managing director Azman Mokhtar said a Proton announcement “is imminent,” adding the process was “still ongoing” with both Volkswagen and General Motors after the pullout of PSA Peugeot Citroen.
Khazanah owns around 43% of Proton, AP noted.
Any move by Khazanah on Proton would be a “strategic and financial decision,” Azman told the news agency on the sidelines of an investment conference in Malaysia’s largest city, Kuala Lumpur.
AP noted that Peugeot said earlier this month it had called off talks about possible industrial collaboration with Proton, saying the “right conditions for a successful project weren’t in place.”
However, the Associated Press said Azman’s comments appear to contradict prime minister Abdullah Ahmad Badawi’s a day earlier, who said Proton was currently only talking to Volkswagen. He was reported to have said in an interview with CNBC that partnering with GM was still a possibility if the talks with VW fall through.
The premier’s comments were widely carried in Wednesday’s local newspapers, AP said.
Abdullah was also reported to have told CNBC that any partnership must retain Proton’s identity.
“Proton is the national car,” Abdullah said, according to the AP report. “Proton is our pride, but it’s a name, but most important, the engine, the tech. That’s why we believe a good foreign partner will help us to develop (it).”
Malaysian business weekly The Edge recently reported that talks between Khazanah Nasional and Volkswagen were not going well. The newspaper also said a local partner may be introduced, AP added.
The Associated Press said that, earlier in March, GM chief executive Rick Wagoner said “there’s a lot of work to be done” on a possible tie-up with Proton, without providing details.
Local media had reported last week, quoting a top Volkswagen executive, that talks between both parties were at an advanced stage, the report added.
