We were expecting to hear an announcement this week about a tie-up between Volkswagen AG and Proton Holdings, a Malaysia state-controlled automaker. However, Proton said today that talks between the two companies have ended as Volkswagen is focused on “other priorities.”
Proton said that it “acknowledges” Volkswagen’s decision and will move forward with its current strategy, which includes a collaboration with Mitsubishi.
Following the announcement, Proton’s shares fell the most in more than 13 months in Kuala Lumpur trading.
Proton has been looking for foreign partners to help increase exports and develop new models that will compete with Toyota and Honda in its home market.
– By: Omar Rana
Source: Automotive News (Subscription Required)