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Malaysian PM to meet Volkswagen chief on possible tie-up

Posted : Mon, 02 Apr 2007 07:34:00 GMT
By : DPA
Category : Asia (World)
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Kuala Lumpur - Malaysian Prime Minister Abdullah Ahmad Badawi said Monday that he would meet top officials from Germany's Volkswagen AG to discuss a possible tie-up with national carmaker Proton. "I am waiting to meet the (Volkswagen) chief," Abdullah told a media conference.

"He has indicated that he wants to see me. So, I am expecting him to come anytime."

The Malaysian government has been looking for a strategic partnership for loss-making Proton with a foreign company.

The government is in talks with Volkswagen AG and General Motors, the two remaining foreign contenders after France's PSA Peugeot pulled out last month.

Abdullah said Monday that discussions with the potential strategic partner were nearing completion.

"The (talks) at the officials level are nearing conclusion. They have to present the full report to me," he said.

Abdullah said the government was looking forward to concluding talks "as soon as possible," after missing a march deadline to name Proton's partner.

He declined to elaborate on discussions with General Motors, but company officials have said that talks are still underway.

Regional trade agreements have forced the lowering of taxes on foreign cars in Malaysia, thus stripping the loss-making Proton of its protected local market.

Copyright DPA

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