Proton shares dive after talks fail

Malaysian government abandons talks to find partner for troubled national carmaker.

    The government said Proton will go it alone after showing promising sales and expansion plans [EPA]

    The announcement caught analysts by surprise and brought ratings downgrades for Proton stock as questions grew over the long-term viability of loss-making automaker.

     

    Lobbying

     

    Talks were called off after intense lobbying by Proton's management who wanted a chance to turn the company around, as well as some of Proton's rivals, according to a source familiar with the talks told Reuters.

     

    Rival firms had feared a Volkswagen-Proton alliance would usher in fierce new competition into the Malaysian domestic market.

     

    Explaining the decision to terminate talks with potential partners, Nor Mohamed Yakcop, Malaysia's second finance minister, said the government felt Proton should be given a chance to return to profitability on its own steam.

     

    He said the company had shown strong sales of its latest model and had plans to export to Iran and China.

     

    The government has been in on-and-off talks since 2004 with VW over a possible alliance, hoping to repeat the success Europe's biggest carmaker brought to Czech carmaker Skoda Auto.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    From Zimbabwe to England: A story of war, home and identity

    The country I saw as home, my parents saw as oppressors

    What happens when you reject the identity your parents fought for and embrace that of those they fought against?

    Becoming Ocean: When you and the world are drowning

    Becoming Ocean: When you and the world are drowning

    One woman shares the story of her life with polycystic kidney disease and sees parallels with the plight of the planet.

    The evening death came for me: My journey with PTSD

    The evening death came for me: My journey with PTSD

    On a gorgeous Florida evening, a truck crashed into me. As I lay in intensive care, I learned who had been driving it.