Frankfurt: Volkswagen is in talks with counterparts from Malaysia, DRB-HICOM. The main agenda of the talks is to expand cooperation and increase the presence of the German car maker in Southeast Asia. Thus DowJones Newswires reported on Thursday (2/2).
Citing sources close to the situation, the news agency said the VW, the second largest car maker in the world, has sent several top-level executives to Malaysia to enter into direct talks on expansion of cooperation with DRB-HICOM there.
DRB-HICOM has recently acquired a majority stake Malaysian national carmaker, Proton. One possibility for VW to take over the production capacity at the Proton plant in Tanjung Malim is very underutilized and make Malaysia a center of production for the whole region.
In return, Volkswagen may DRB-HICOM backed plans to make Proton more competitive by leveraging its global engineering network and has long experience of operating in emerging markets like China and Brazil.
When contacted by AFP, VW does not deny the report. However, the VW says that they are constantly looking for growth opportunities around the world with Asia as its main objective.
Sitting on a pile of cash amounting to 21 billion euros or the equivalent of U.S. $ 28 billion, VW has initiated a program expansion, buy a luxury sports car maker Porsche, giant truck maker MAN and a minority stake in Suzuki. (ANS / Ant)
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