KUALA LUMPUR, Malaysia, Oct. 1 (UPI) -- Malaysian carmaker Proton is in talks with Volkswagen about a potential partnership, which could boost the German auto giant's presence in the region.
Volkswagen officials confirmed talks were underway, but declined to provide details beyond ruling out a takeover of the state-owned Malaysian firm, The Business Times reported Friday.
"We are in talks with Proton about opportunities for partnerships," Volkswagen spokesman Hartwig von Sass said.
Proton has refused to confirm the negotiations, but Chief Executive Mahaleel Ariff told reporters Wednesday that the company was in talks with two foreign automakers on a possible partnership by year-end.
Proton has sought a new partner since Japan's Mitsubishi Motors Corp -- deeply involved in the technological development of Proton since its founding in the mid-1980s -- sold its 7.93 percent stake.
Volkswagen has lagged behind other foreign automakers in tapping into the Southeast Asian market, where many of its competitors have established plants in Thailand over the past decade, the paper said.
