Volkswagen Currently Talking To Proton And DRB-HICOM

Déjà vu? Once again, it seems Proton is in talks with Volkswagen to strike up a strategic partnership, which could lead to the assembly of Volkswagen cars at the national automaker’s plant in Tanjung Malim. There could also be a collaboration in platforms and engines, although Proton remains steadfast on not selling equity to the German automaker.

It is understood that the Government would like to see Proton forming some kind of alliance before the announcement of the National Automotive Policy (NAP) next month. Of course, Proton and Volkswagen have negotiated numerous times over the years, the most recent being a couple of years ago, which would have seen the German automaker taking an equity stake in the national automaker. The Proton management, however, foiled the plans by convincing its biggest stakeholder, the Government, that Proton's new models would revive disappointing sales figures.

Incidentally, Volkswagen is said to be discussing with DRB-HICOM regarding the assembly of cars locally, in Pekan, Pahang. In addition to just qualifying for CKD (Completely Knocked Down) status, the German automaker is reportedly also interested in establishing Malaysia as its sourcing hub for auto components.

So, it seems the Malaysian automotive scene, or should we say behind-the-scene, is quite vibrant at the moment. Like we have always maintained, cars are simply too expensive in Malaysia, and the cheapest cars—namely Protons—have plenty of room for improvement. So any changes would likely be for the better, making the new National Automotive Policy (NAP) and Proton/Volkswagen talks that much more interesting. Stay tuned.