Volkswagen will supply products and components to Malaysia’s state-led car maker Proton, the Malaysian firm reportedly said on Friday, a fortnight after talks for a broader pact failed.
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The new cooperation will focus on “specific projects”, Proton said in a statement cited by Reuters, adding that the decision was endorsed by VW in a letter sent to the Malaysian company.
“With this understanding, Proton Holdings and VW have now decided to bring an end to the proposed collaboration envisaged under the MOU signed by them in October 2004,” it said.
Reuters noted that VW announced on 13 January it had ditched a planned joint venture with Proton after the Malaysian firm and the government in Kuala Lumpur blocked a plan by Europe’s largest car maker to take control of Proton.
“We have now moved past the issue of VW eyeing any kind of shareholding, and we are now able to work on specific initiatives that complement Proton’s capabilities and current range of products,” Proton reportedly said on Friday.
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By GlobalDataIt also said it will work with Malaysia’s national oil corporation Petronas to develop larger engines and more environmentally friendly alternative fuel systems, Reuters added, noting that, earlier this week, Proton said it might extend a relationship with Mitsubishi Motors, which supplies parts to the company.
