VW to buy Malaysia's Proton (includes Lotus)

[Moonan]

Also Touareg factory is in Bratislava..
Hey, if VWAG can build everything from Bentley to Skoda, why not Proton as well...

[static1800]

Seems strange that VW cannot afford to bring in German built cars, yet Holden can!?!

Maris

Only the Astra is German now, the new Barina's are actually Daewoo's and I dont think they sell vectra's anymore. All this to make way for the new commonwhore.. i mean commodore.

[phaeton]

Seems strange that VW cannot afford to bring in German built cars, yet Holden can!?!

Maris

Actually Ford imports the Fiesta from Germany.
Astra's come from Belgium nowadays

VW do import the Golf 3dr GTI, R32 range, Passat, T5 & Crafter range from Germany.

[vinderliker]

Only the Astra is German now, the new Barina's are actually Daewoo's and I dont think they sell vectra's anymore. All this to make way for the new commonwhore.. i mean commodore.

I'd call it a Falcodore!!

[brackie]

Welcome

Welcome and thanks for your considered comments. I agree with you about VAG's strategy. They can buy into a modern, efficient operation and easily convert it to their own requirements. No loss of quality as they conform to the same quality control criteria that apply to German made cars. I'm a fan of SEAT and would buy one tomorrow. Same with Skoda. I believe that here in Australia we remember all too well the shocking quality control ad poor manufacturing techniques of some European manufacturers building cars here in the '70's and apply it to today's situation. (eg Leyland) I have no doubt that VAG cars from China would be just as good as those built in any other country.

Just my opinion

[phaeton]

The VAG purchase of 51% of Proton seems not to have proceeded - I saw no announcement of the transaction on 8 Feb (or since). Proton shares have since fallen a tad (and are expected to fall more after Chinese New Year on 18 Feb). (Note: I happen to be in Malaysia at the moment)

If the purchase does go ahead, I suspect VW would take a few years to digest Proton and work out exactly how best to use the Proton resources (eg modern assembly plant). First steps would likely be similar to VAG's use of Seat etc.

As to the question of buying a VW made in China or Malaysia, this has been done to death elsewhere. VAG engineers design and oversee the construction of VW assembly lines and the quality control of the output. Consummables from VW China (eg fuel filters) are now at VW dealers all round the world.

Cheers

Welcome and thanks for your comments

I still think VW have been chosen but announcement will be in March as originally planned by Proton.

I agree with you VW will most likely do what they did with Skoda and SEAT eg buying majority shares then buy them outright over a period of years.

[gpk_gti]

I am also a big fan of skoda and seat cars,but how many years did it take to bring the quality of those cars up to vw standards?I know it wasnt long,but it wasnt overnight.

[phaeton]

Ben Hi!

I suspect your thinking is correct. VW signed an agreement with Proton for a long term alliance not long ago. VW is clearly interested in the SE Asia market - they opened their second retail dealership in Malaysia last week. And a manufacturing facility in Malaysia (not to mention the designers at Lotus) might be quite a strategic investment for them.

The Malaysian govt is intending to change to lower-sulfur fuels (petrol and ULSDiesel), scheduled for the end of March '07. That opens the way for VW's TDI engines (just like in Aus!). But diesel fuel is almost exclusively used for commercial vehicles in Malaysia at the moment.

One of the sticking points for VW (or any intending purchaser of Proton) is the national requirement - Malaysia would prefer to retain majority ownership of Proton, whereas VW wants 51%. Remember that Proton is one of Dr Mahathir's brain children (and he was quite upset when Proton sold the Agusta motorcycle business for Euro 1!).

Nationalist forces rule in any Malaysian political-economic debate, so watch this space ...

The thing is that alliance fell through although I think VW did give Proton some pointers in the Quality deapartment if memory serves.

Yes the Malaysian Govt. really don't want to let Proton out of their sights. I've read if they really want a turnaround they have to let someone takeover Proton Cars.

Interesting about news about the diesel being acceptable in Malaysia soon, perhaps future Polo TDI will come from there

If the worse happens and VW isn't chosen by Proton, they're planning to build with another Automotive partner in Malaysia.

[phaeton]

Last I heard Proton had no time limit to decide and they were still considering GM or VW

VW will probably build a factory with another Malaysian Industrialist company by the time Proton makes up its mind

[gpk_gti]

proton dont sell cars even in their home country because EVERYONE knows they are crap,and im being nice about it.I dont really care what happens to proton,but if VW think most of their customers will buy a VW made in malaysia,bbbbbbbzzzzzzzz WRONG!! they should build SKODA or SEAT there...but I dont even think their managers are that stupid,only VW!! crazy......

or hold on,better still,,, make a proton,thats a VW but badge it a Proton,like skoda and seat!!! but cheaper!!! now thats a good idea,,ps- I still wouldnt buy one....

[gpk_gti]

must be blind!! why is it important for australia if VAG bought proton???

[gpk_gti]

must be blind!! why is it important for australia if VAG bought proton???

VMQ6695--- you havent answered my question.are you a proton plant???hehe

[phaeton]

Thanks vmq6695 for posting
I was not going to post anymore on the proposed alliance because I'm annoyed its always on, off, on, off, on, off, on, off, on etc

VW Execs meet next week with Senior Proton Officials.


Yiorgos its pure strategy on VWs part to buy Proton
They would gain tax free imports to some of the ASEAN Allianced Countries.

[gpk_gti]

i agree with you ben,,,but vmq6695 said it was important for australia,id like to know why!

[gpk_gti]

aha! thanks for that,,economics was not my forte at school,especially asiapac region.I did actually think malaysia owned all of sydneycity/sydney harbour foreshore..as for the deal,with all the screw ups already made by proton management,id guess they will stuff this one up too.pity,they COULD be the next seat/skoda,but I doubt it.