Mitsubishi Motors Corporation has said, in the wake of Volkswagen's decision to drop a strategic manufacturing partnership plan with Proton, that it has no plans to jointly set up a plant with Proton.

However, the company has said that it wants to continue to have a 'good relationship' with former partner Proton.

There has been speculation in the Malaysian media that MMC would step in to work on manufacturing collaboration with Proton following VW's departure but the company said in a statement that it has 'no plans to launch a new plant in Malaysia as a joint venture'.

The head of Mitsubishi Motor's Malaysian subsidiary has recently been quoted in the local media as saying that the company was looking into the possibility of assembling its vehicles in Malaysia by 2007 or 2008. The unit has already launched six models in Malaysia since commencing operations in March 2005.

MMC was a technology partner with Proton for 19 years before exiting from the company in 2004.