Volkswagen and Proton ended their talks
Volkswagen and Proton ended their talks about a potential partnership a few days ago according to a statement released by Volkswagen. This is not the first time the situation occurs between the Malaysian government, which owns Proton, and several carmakers. PSA Peugeot Citroen and GM also ended their negotiations.
The major stumbling block appears o be the controlling stake. While foreign car makers want a controlling stake, 51%, of Proton in exchange of engines and expertise, the Malaysian refuse to abandon its control over Proton.
Volkswagen Group also said that it will now consider building its own factory in South Eats Asia.