Business

Tuesday October 9, 2007

VW management control of Proton not decided yet

By DEVID RAJAH




PUTRAJAYA: The Government has not decided on whether to allow Volkswagen AG (VW) to take management control of national carmaker Proton Holdings Bhd.

Prime Minister Datuk Seri Abdullah Ahmad Badawi confirmed Tuesday that the matter was discussed but said: “we have not finalised yet.”

He said the Government hoped it could finalise the deal as soon as possible but they (VW) want to be very certain about everything, he said when asked what were the obstacles.

Abdullah also called on the press to be patient and not to speculate as the matter had to be discussed and decided on.

Abdullah was speaking to reporters after chairing the Iskandar Regional Development Authority board and advisory council meeting at his office here.

Press reports quoting sources claimed that VW was just waiting for a nod from the Malaysian government to take control of national carmaker Proton Holdings Bhd.

The report also said that the German auto giant was looking at taking only a 20% stake in Proton and was also seeking management control of Proton Holdings.

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