VW to buy Malaysia's Proton (includes Lotus)

[phaeton]

http://www.hetek.hu/files/pictures/onlinearticles/vw_logo.jpghttp://www.autoblog.com/media/2006/03/PROTON_LOGO2.jpg

http://www.bernama.com.my/bernama/v3/news_business.php?id=243616

[brackie]

A controlling interest.I wonder if this will influence the componentry of Protons. Interesting.

[GoLfMan]

A controlling interest.I wonder if this will influence the componentry of Protons. Interesting.
i hope VW and Lotus end up doing a joint venture car :D

[Tim]

A controlling interest.I wonder if this will influence the componentry of Protons. Interesting.

I wonder if VWs will start having proton build quality.. hmmm hang on a second.. :P

[phaeton]

My mistake everyone it seems VW may only be buying Proton Cars not Lotus ;)

It is purely a strategic play by VW, they need to build cars for our region cheaper. so why not build in our region ;)

Don't expect quality to go down ;)

[gpk_gti]

are they not already producing in China?? 4door polo with boot?remember that one?I dont think I ever saw one on the road.I dont think id ever buy a "german" car thats not made in germany,sorry!:( !

[GoLfMan]

are they not already producing in China?? 4door polo with boot?remember that one?I dont think I ever saw one on the road.I dont think id ever buy a "german" car thats not made in germany,sorry!:( !
i agree with you, i dont mind one built in South Africa. But China and Malaysia are out of bounds (prooved by the cars and products they produce)... If i buy a Euro car i want Euro build and quality.

[gpk_gti]

mmm,, even S.A im a bit sceptical about,heard so many stories from alot of different manufacturers having build qual problems.Maybe they wont even bother bringing them to us like they already do with the chinese made cars.I wonder how many polos they got stuck with??? does anyone know what the chinese made VW build quality was like?

Id be interested if someone started a POLL to see if us DUBBERS could see further than just the badge? would WE buy MALAYSIA or CHINA built VW's???

[vinderliker]

Don't forget the new Jetta is built in Mexico, build quality question marks may have to asked. I agree I am a bit suspect of stuff not coming out of Germany i.e. Audi. But like a lot of European manufacturers they are looking at Eastern Europe and Asia due to costs like wages being alot cheaper.

[brackie]

Id be interested if someone started a POLL to see if us DUBBERS could see further than just the badge? would WE buy MALAYSIA or CHINA built VW's???

Then start one :D It's one of the forum's facilities that's available to all.

My SA built TDI is OK. I have no problems with the build quality. Tight as a drum and everything fits. Most of the componentry is made in Germany anyway.

[GoLfMan]

Then start one :D It's one of the forum's facilities that's available to all.

My SA built TDI is OK. I have no problems with the build quality. Tight as a drum and everything fits. Most of the componentry is made in Germany anyway.
same as my TDi Polo, well put together :)

[phaeton]

are they not already producing in China?? 4door polo with boot?remember that one?I dont think I ever saw one on the road.I dont think id ever buy a "german" car thats not made in germany,sorry!:( !

Yes but Malaysia has FTAs with Thailand and Taiwan and I think Japan will be added later.
China as far as I know does not have free trade agreements with those countries ;)

Jutta Dierks VGA Boss has said VW may have ago at Chinese VWs in the future, she said that the Polo sedan was a learning curve for VGA and Shanghai-VW.

So next Chinese Dub should be marketed and built better ;)

[GoLfMan]

i dont care what dub comes from China/India/Taiwan/Malaysia im not buying it :?
unless the build quality is proven to be just as good as German built cars....
The SA polo hasnt been too bad thus far, touch wood!!

[WEDEL.1]

are they not already producing in China?? 4door polo with boot?remember that one?I dont think I ever saw one on the road.I dont think id ever buy a "german" car thats not made in germany,sorry!:( !

Don't forget the late Mk 4 Golf was supplied to us from S.A., as the Mk 5 is.

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

Maris

[gpk_gti]

Don't forget the late Mk 4 Golf was supplied to us from S.A., as the Mk 5 is.

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

Maris
its all got to do with profits

[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 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 :D

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 :D

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

[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:D..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.

[phaeton]

WOW :o didn't know all that :D

I knew Mitsu will come out the worse off if VW-Proton goes ahead.

[phaeton]

Its about time :D

[phaeton]

Interesting :D

Hopefully not as laid back as the Spanish :D (I'm half Spanish so no one say I'm racist :D)