Talks between Volkswagen and Proton fall apart
Volkswagen’s attempt inpurchasing Proton may have hit a pretty deep rough patch after talks between the two sides broke down. According to a number of published reports, the resulting collapse in talks between VW and Proton led to the latter’s stock dropping by over five percent, a clear sign of Proton’s tenuous position as well as a growing sense of discontent and uneasiness from its investors.
As a result of the collaboration talks falling apart, Volkswagen has announced that it would be concentrating more on its other priorities while Proton says that it would now continue to work on its ASEAN Multi-Local OEM strategy, as well as becoming more aggressive in pursuing its ongoing projects, including the EMAS project and a Mitsubishi product collaboration deal.
Despite keeping a positive and upbeat front on the matter, a lot of people still believe that, without a partner to help leverage its entry into the global export market, Proton will continue to be left behind by its competition and, thus, awareness of the brand will once again be stunted to just its local Malaysian market and, quite possibly, nearby Asian countries.
Source: Paul Tan