If Proton treated the same way as Skoda in VW group, i like this idea!

I think the most likely outcome if VW could assume Proton manufacturing business, is.............Proton would be the same as Skoda
(Different exterior design, but with shared VW components)

An update...

Source: The Edge
Link: http://www.theedgedaily.com/cms/content.js...0b6400-11db6d84

PM: Mulls selling 51% in Proton manufacturing to VW
By Ashwin Raman & Giam Say Khoon


Prime Minister Datuk Seri Abdullah Ahmad Badawi said on Nov 9 that the government is considering giving approval for German carmaker Volkswagen AG (VW) to take up a 51% controlling stake in Proton Holdings Bhd's manufacturing operations.

"It is an option we are considering at the moment," he said, adding that a decision would be made after considering the options.

Abdullah was commenting on a report in the FinancialDaily on Nov 9 that the government had finally decided on giving foreign parties 51% control in the manufacturing operations of Proton with Volkswagen as a potential partner.

He was speaking to reporters after launching the Universiti Malaya Royal Professor Ungku Aziz Chair and centre for poverty and development studies in Kuala Lumpur.

Reseach houses, meanwhile, are considering upward re-rating of Proton following the latest government move to consider giving approval to foreign parties to take control of the the manufacturing arm. Proton closed 30 sen higher at RM5.50 after touching a high of RM5.70 with 1.92 million shares done.

On Nov 9, the FinancialDaily reported that the decision to bring in a foreign partner to Proton was made in mid-October at a meeting on the automotive industry chaired by Abdullah.

The report said negotiations had resumed with Volkswagen in October after talks between Proton and the German carmaker failed earlier this year over issues such as control of the national carmaker.

Two senior officials from Volkswagen had met with Second Finance Minister Tan Sri Nor Mohamed Yakcop to discuss the matter including the equity structure, vendor system and product development. Volkswagen is expected to come back with a complete proposal.

The report said the government was agreeable to a model similar to the arrangement adopted by Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and Japan's Daihatsu Motor Co Ltd. Using that arrangement, Proton would retain control over the domestic distribution arm but the manufacturing arm would be headed by a foreign partner.

The report added it was now up to Khazanah Nasional Bhd to decide whether to sell its majority stake in Proton to local players such as Sime Darby Bhd or DRB-Hicom Bhd to drive further negotiation with their respective foreign partners.

A Proton official, when contacted, said the company's management was unaware and had no knowledge of the government's decision.

"If there is any decision, it is a shareholder's matter," the official said.

OSK Investment Research has upgraded Proton to a 'trading buy' call from neutral with a target price of RM7 per share based on 0.7 times FY08 book value versus 1.0 times for Kia Motor and Hyundai and 0.8 times for PSA Peugeot Citroen.

CIMB Investment Research and Mayban Securities Research said they would revise their fair value and call on Proton if the government approves the sale to Volkswagen.

"Proton could ride on VW's stronger brand name, access the latter's far superior technology and benefit from a significantly wider sales and parts sourcing network," CIMB Research said, adding it valued Proton at 0.9 times CY07 net tangible assets at a target price of RM9.20.

It said such a move would be positive for Proton as Volkswagen would likely use the former's plant in Tanjung Malim as its production base for the Asean passenger car market.

CIMB Research added Proton would likely develop new car models with Volkswagen for specific segments and markets.

Mayban Research said Volkswagen would be more pliant in negotiations this time around as it could use Proton as a platform to penetrate the Asean market to counter its slower sales recorded in North America and Europe.

Source : The Edge
Link : http://www.theedgedaily.com/cms/content.js...0b6400-a95e1e60

Govt to decide on Proton stake in 3 months (Updated)
By Ashwin Raman


The government will decide within three months the possibility of giving approval for German carmaker Volkswagen AG (VW) to take up a 51% controlling stake in Proton Holdings Bhd's manufacturing operations.

Second Finance Minister Tan Sri Nor Mohamed Yackop said on Nov 10 that the government was also talking to many carmakers including VW and Peugeot, on strategic partnership for Proton.

"If, in the nature of things and the context of circumstances prevailing now, it is necessary to bring in a foreign partner, then we will bring in a foreign partner.

"We would like to keep an open mind on issues like role and equity participation of Volkswagen and others. We don't want to constraint ourselves," he told reporters after delivering the keynote address at a seminar on the government's "Private Finance Initiative" in Kuala Lumpur.

Nor Mohamed said the government would do whatever it needed to do to ensure Proton would survive, prosper and create value for the government.

On Nov 9, Prime Minister Datuk Seri Abdullah Ahmad Badawi said the government is considering giving approval for VW to take up a 51% controlling stake in Proton's manufacturing operations.

The FinancialDaily reported on Nov 9 the government is believed to have finally decided on giving foreign parties a 51% control in Proton's manufacturing operations, with German VW as a potential partner.

The report stated negotiations resumed with VW last month. Proton and VW ended talks early this year after they failed to agree on issues such as control of the company.

The arrangement could be similar to that between second national carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and its principal Daihatsu Motor Co Ltd of Japan.

The report added Proton would handle the domestic distribution arm but a foreign partner would run the manufacturing division as it would bring in technical expertise and help expand Proton's production for export.

I don't think so, maybe Proton will be run just like Skoda and the plant may be produce VW cars for ASEAN market apart from producing future Proton that maybe developed with the help of VW.....Lol, don't expect rebadged VW model so easily here, (Passat, Golf, Polo, Fox or anything), there's no free meal in this world...

VW should CKD this in Malaysia

Polo saloon

Haha, if VW can develop a Proton car within 2 years or less using computer testing just like Renault, that's good!

That would make things easier...

Don't expect free lunch lah.....hehe, i guess Proton may joint develop a model with VW rather than simply rebadge Passat, Golf, Polo or Touareg.......

Perhaps, a different car model that is jointly-developed by Proton and VW?

As much as i want to see rebadged VWs...i dont think it is that easy, afterall there is no "free meal" in this world, hehe