Volkswagen AG may Share Technology with Proton

On a report that Volkswagen AG may have agreedVolkswagen will monitor international sales.
to share technology with Proton Holdings Bhd., and toAzman Mokhtar, the Managing Director of Khazanah,
acquire a stake in its manufacturing unit, shares of thesaid in June 26 that he plans to look for a partner for
unprofitable Malaysian automaker rose.Proton before the end of this year.
After the Edge magazine said that Volkswagen mayThe Edge also states that collaboration between
pay several hundred million ringgit and supply vehicleProton and U.S. carmaker General Motors Corp. is
platforms as part of an agreement, the stocks ofunlikely to happen because Proton sells vehicles in Iran.
Proton jumped as high as 5.2 percent. The report alsoAccording to the magazine, GM particularized that
said that the biggest carmaker in Europe, Volkswagen,Proton must pull out of Iran, a condition that will be met.
will own 51 percent of a new company that will ownAbout Volkswagen and the environment
Proton's manufacturing division.Protecting the environment is increasingly becoming an
Analyst Mohd Hanafi said that the agreement seemsimportant part of the whole process chain from
to be just waiting for a formal decision. The analyst atproduct planning and product development to the
Alliance Research Sdn. in Kuala Lumpur, with a ``buy''recovery of end-of-life vehicles. In this connection,
rating on Proton stock, added that any kind of newwhen a new Volkswagen is developed, several
positive development would surely have an impact online-ups of activities guarantee the long life of the
the share price.vehicle and improve subsequent recovery.
Based on the estimates of Hwang-DBS VickersAll engineers who are involved in the development
Research Sdn., the control of Proton's car makingprocess use the internal respective guidelines and
division may cost 900 million ringgit ($263 million). Thebroad information as the basis for creating recyclable
state-owned automaker needs an ally to help roll outproducts. Aside from avoiding the use of hazardous
new models and turn out increasing sales.substances, they are also increasingly using recycled
Khazanah Nasional Bhd. spokesman Mohd Asuki Abasmaterials as well and labeling the materials of all
refused to comment on the report. Khazanah, aapplicable vehicle components with their material types,
Malaysian government investment unit, holds 43to succor identification and subsequent recycling.
percent of Proton. Proton Spokeswoman Faridah IdrisThrough a recycling analysis, the environmentally
said that she was not able to comment immediately.friendly properties of the new vehicle are checked.
Proton shares jumped as high as 30 sen to 6.10 ringgit.Documentation is prepared and made available to the
The stock has dropped 11 percent this year asrecycling companies to guarantee environmentally
compared with a 26 percent increase by the Kualafriendly recycling at the end of a vehicle's life.
Lumpur Composite Index.The company engineers are the experts behind quality
The Magazine said that according to the agreement,Volkswagen Jetta parts.
Proton will control domestic vehicle distribution and