don't compare with others country...
the massive tax is to protect proton...in others words, to protect umno's income...

Govt won't sell entire Proton stake to VW

PUTRAJAYA: The Government, seeking a partner for Proton Holdings Bhd, ruled out selling its entire 43% stake to Volkswagen AG.

Volkswagen, the Government's preferred partner for unprofitable Proton, wants a "substantial" stake in the carmaker, Deputy Prime Minister Datuk Seri Najib Tun Razak said in an interview.

"It's the national car," Najib said. "It can't be all of the stake."

Proton needs a partner after losing half its market share to competitors and posting its first annual loss in at least 17 years.

Control of an alliance may be key for Volkswagen, which would gain access to South-East Asia's largest car market.

Volkswagen possibly wants a stake in the manufacturing division, Najib said.

Andreas Meurer, a spokesman for Volkswagen, said talks were continuing and declined to comment further.

Volkswagen is Europe's biggest carmaker.

Najib declined to say if acquisition talks were limited to Proton's manufacturing facilities or to name other possible partners because talks had not ended.

Offers and counter offers had been "bandied about" and negotiating positions were always changing, he said.

"Whether we can give up a substantial stake, that's the question," Najib said. "Substantial means majority. Are we willing to give up a majority in the manufacturing side?"

Najib said the Government was prepared to let a foreign partner run Proton without political interference. The Government also hadn't "closed the door" to companies other than Volkswagen, he said. - Bloomberg

http://biz.thestar.com.my/news/story.asp?f...73&sec=business

OT, my colleague was saying juz now, if proton still produce cars tht are rubbish, then why not proton produce a true rubbish truck instead.

Proton crt too many models of cars. WW cannot eat proton 1 la.. proton invisible 1.. lol.. juz sell waja-lotus, wira-lotus, all sporty sporty sedan car then cun liao ma.. haihz..

6 Aug 2007: Corporate: VW to do Proton due diligence
By Leela Barrock
Email us your feedback at fd@bizedge.com

Volkswagen AG (VW) is expected to conduct a due diligence on certain assets of Proton Holdings Bhd sometime this month, sources say. It is understood that Proton's senior management has been informed of the exercise and has been instructed to facilitate and accommodate the due diligence as best as it can.
According to industry analysts, the due diligence exercise could only be carried out if both parties have more or less reached agreement on major issues.
Sources familiar with the protracted negotiations between Proton's key stakeholders and VW say the recent Wolfsburg round of negotiations in Germany was more conclusive than the ones in the past. Negotiating on the Malaysian side are Proton's 42.7% shareholder Khazanah Nasional Bhd and officials from the Prime Minister's office.
In June, negotiations between VW and the Malaysian side recommenced after an apparent breakdown in communications earlier this year. Since then, there have been high-level meetings in Bangkok and Wolfsburg as well.
As at press time, The Edge was unable to obtain any details on the agreement between Proton and the German automaker. However, sources say, there is not much that is different from VW's own announced position and information that has already been leaked out in Malaysia.
As to when an announcement will be made, a source says the due diligence would have to be completed first.
"But we do not foresee any problems because Proton has cleaned up its books in the last 12 to 18 months. There are no hidden surprises and VW already has a good feel of Proton's assets because it has done inspections previously," says a source familiar with the negotiations. "Not much has changed in terms of the Proton assets VW is looking at, such as the manufacturing, engineering and research and development facilities in the last three years."
The details as reported are for Proton's key assets to be injected into a new company in which VW and Proton will hold 51% and 49% stakes respectively. The new company will manufacture cars with the Proton marque both for the domestic and export markets. The export models are likely to be branded as Protons and not VWs.
To maximise the cost potential of the Malaysian industry, VW will attempt to maximise its use of local content, but will adhere to strict German standards of quality.
While Proton injects its assets into the new company, VW will in turn offer its platforms and technical expertise.
Previously, it was reported that Proton's assets would be valued at market price and VW could offer some cash for Newco.
Meanwhile, it is not yet clear what VW's position is vis-�-vis Indonesia. Last week's reports of plans to build a small car plant in Asean's biggest and most populous country have thus far passed without comment from the Germans.
Those familiar with VW say when the first round of negotiations between Proton and the Germans looked like it was heading nowhere, VW took steps to explore its options in Thailand and Indonesia.
"Malaysia is an attractive market in Asean but it is by no means the only one. And there is a lot of potential in Indonesia where the government is very investor-friendly," says an auto player.
VW and Proton first commenced negotiations with the signing of a memorandum of understanding in October 2004. In July 2005, the situation deteriorated when it became clear that the Germans would not agree to a deal along the Mitsubishi lines. (Mitsubishi was Proton's original partner and held a minority stake in the company. It made millions on royalty payments for its engines and platforms.)
By early 2006, VW had called off talks with Proton. They recommenced later that year but hit a stumbling block when VW's CEO Bernd Pischetsrieder was replaced with incumbent Dr Martin Winterkorn. This year in March, VW called off talks in a terse letter to Prime Minister Datuk Seri Abdullah Ahmad Badawi but had a change of heart a few weeks later.
Meanwhile, Proton itself is readying to move the bulk of its operations and management teams to its facilities in Tanjung Malim. The Proton City development crash-landed when the Asian financial crisis hit in 1997 and dragged on well into the new millennium. The area looked very much like yet another pie-in-the-sky dream when Proton's Gen.2 and Savvy models failed to ignite the buying public's imagination to give Proton and thus Tanjung Malim the jump-start it needed after the crisis.
However, with plans underway to phase out all Proton's old models, Tanjung Malim will become the hub it was intended to be.
According to Proton insiders, the Centre of Excellence in Shah Alam will be retained along with a corporate presence in the area but, other than that, "all the key people will move to Tanjung Malim".
According to this source, Proton's managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir already spends a good part of each working week in Tanjung Malim. Proton's new model, the long-awaited Wira replacement sedan, to be launched on Aug 15, will also be assembled in Tanjung Malim.
In fact, according to Proton, all new models will use Tanjung Malim's state-of-the-art facilities.

exactly in which season?

Nation
Friday August 17, 2007

Car launch not tied to Proton-VW negotiations

PUTRAJAYA: The production of Proton's latest model, the Persona, has nothing to do with negotiations between the national carmaker and Volkswagen AG for an alliance, said Prime Minister Datuk Seri Abdullah Ahmad Badawi.

Refuting an article by a foreign news agency quoting him as saying otherwise, Abdullah said: "The foreign news reporter asked if the new car would enhance Proton's standing because Volkswagen would like it that Proton has a good car.

"My reply was that talks between Proton and Volkswagen had nothing to do with the production of this car or any particular car.

"We are talking about some kind of general cooperation that could possibly be either on equity participation or in the form of some other kind of cooperation," he told reporters after a briefing on Pemudah here yesterday.

The news agency report said Abdullah had confirmed for the first time that Volkswagen was conducting due diligence on Proton, as part of negotiations for a possible strategic alliance.

http://www.thestar.com.my/news/story.asp?f...0817&sec=nation

I went to test drive the new lancer at Sg.Besi Proton show room last week. At that time, I took the chance to raise up my questions to one of the salesperson.
What I got to know is that Waja CPS will be launched end of the year, Proton BLM which costs around RM30k will be launched around March year 2008 and last but not least, he told me that the deal or the talk between Proton and VW might or might not be materialized as VW only interested in our Tanjung Malim assembly plant which is one of the most advanced and state of the art one in the world. If I am not mistaken, 20k units of vehincles can be produced within a month or a year.Sorry, I have forgotten whether it is in a month or a year time.

So, this is part of the reason that Proton does not want to agree the deal with VW. Just imagine, if Proton lets go its assembly plant, what is left for Proton? Nothing...nothing at all..

This post has been edited by geforce1982: Aug 17 2007, 06:31 PM

ppssttt, is a myth

This post has been edited by Drifter: Aug 26 2007, 10:13 AM

actually....i dont give a damn who takes over Proton or not
as long as they make good, cheap, reliable cars at good prices.....i'll buy it!

change the logo from a tiger to an elephant or alligator ...it does not matter
In fact....with the reputation and mindset of so many in Malaysia...its best to change the name, emblem and designs

its not easy to change branding or logo.. it requires a whole lot of $$$$$. seriously..

Proton nowadays produce good car.. and its cheap.

The verdict is out - Proton and Volkswagen are not tying up together in a partnership that involves stake transfer.

Second Finance Minister Tan Sri Nor Mohamed Yakcop says the earlier plan for Proton to have a foreign strategic partner was no longer applicable as circumstances have changed.

Proton has shown clear improvement in the recent months, including significantly improved sales figures and a popular new model. It will also be launching the new BLM soon, the long awaited People's Car replacement for the ageing Proton Saga, which despite its age has also become a sales success in recent months thanks to the new Merdeka promotion pricing. The new Proton Saga replacement will come in 2008. There is also an MPV in the works for a 2009 launch.

Consumer confidence in Proton have also been slowly restored, though Proton has a long way to go in that area. Other improvements that the government noted include improving overseas ventures - Proton has had dealings with Iran and China recently. It exported 5,000 Wajas to Iran with plans for GEN2 assembly there, and negotiated a rebadging deal with China's Jinhua Youngman for them to sell GEN2 cars there under the Europestar badge.

Tan Sri Nor Mohamed Yakcop says Volkswagen did not walk away from the negotiation, and there was no breakdown in talks. Volkswagen was disappointed in the government (Khazanah)'s decision to pull out of the talks, but respected its decision.

The government does not rule out the possibility of future strategic alliances with foreign partners, but only at a more appropriate time and when Proton is in a stronger negotiating position. And from what the public can see at least, Proton looks like it is on its way to that position.



http://paultan.org/archives/2007/11/20/pro...-talks-are-off/

do u even know y they lose money..?? plus highway also lose money?? no lose money.. malay how to makan wang?? how to get gov to pump more money?? god gave u brains use it ??

Ooo~ Sensitive issue o' Careful with your words.. If not, Keng Yeik will cm catch u!

This thread should closed since VW deal were off already ~ ehehhehe

Still can discuss why end ma...

cannot ah ~ press already so details ~

the title should be changed from Talks Are `Fairly Advanced' to deals are off.