A Low-Cost VW-Proton Sedan in the Pipeline?
A few years ago, Volkswagen indicated its interest to Proton in collaborating to build its Passat and Fox models. Proton, which had been facing growing challenges from Malaysia’s own Naza and Perodua Motors, would benefit from such a move as Volkswagen could then build cars locally, and export them to Japan. Thanks to their free-trade agreement, the car would be able to be exported without tariffs.
Earlier this year, VW signed an agreement of intent of acquire 51% of Proton’s manufacturing arm. However, recent reports have been going around on VW’s “less keen” mood, sending much uncertainty to watchers whether the deal would go ahead well and smoothly.
Now, in a deal which has been rumoured to possibly involve Malaysia’s Proton, Volkswagen is said to be preparing a low-cost sedan for the South-East Asian market.
If given the go-ahead, the new car will be manufactured in Malaysia – a significant improvement in its South-East Asian presence, rivaling those of BMW and Mercedes-Benz.
VW’s executive, Kevin Rose, also announced that Volkswagen would start producing cars in India this year.
Also expected to arrive in 2009, VW will be making a new budget model. With the most likely targeted markets being China, India and/or Russia, the new model will sit below its current Fox hatchback.
Credits: Kr0n
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