Is VW ready to seal deal with Proton?

Volkswagen boss Martin Winterkorn will visit Malaysia in the next few weeks to conclude a deal between the German auto giant and state-owned carmaker Proton, according to a newspaper report.

The trip "should be to finalize a deal between Volkswagen and the (Malaysian) government with regards to Proton Holdings Bhd", the Edge business weekly newspaper said.

Malaysian officials could not be reached for comment.

The visit by the Volkswagen chief executive officer "should settle a lot of questions that have plagued the negotiations", the newspaper said.

A Malaysian official said earlier this month Volkswagen was keen to take a 20 percent stake in the loss-making national carmaker amid reports talks would soon secure a partnership.

Malaysian Prime Minister Abdullah Ahmad Badawi had confirmed talks were ongoing but said there was no formal request from Volkswagen for a stake in Proton.

Malaysia had already expressed optimism about securing a partnership with Volkswagen.

Abdullah said recently that Volkswagen was studying Proton for a possible strategic pact that would help save Malaysia's national carmaker.

AFP

(China Daily 09/25/2007 page16)