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Malaysian PM to meet with Volkswagen officials over carmaker partnership
POSTED: 9:57 a.m. EDT, April 3,2007

Malaysian Prime Minister Abdullah Ahmad Badawi on Monday said he will meet with top officials from German car giant Volkswagen to discuss a possible tie-up with national car maker Proton.

"I am waiting to meet the (Volkswagen) chief. He has indicated that he wants to see me. So, I am expecting him to come anytime," Badawi said at a press conference here.

The Malaysian government had hoped to find a foreign partner by end March to help the loss-making Proton but failed to meet the deadline.

As France's car manufacturer PSA Peugeot pulled out in early March, Proton is currently in talks with Volkswagen and General Motors of the United States.

When asked if the government will set a fresh deadline, Badawi simply said the government wants to "conclude the talks as soon as possible."

Local TV reports said the prime minister's upcoming meeting with Volkswagen's top officials, expected this week, will help boost the market's confidence in the national car maker.

Proton's vehicles sales declined to 115,538 units last year from 166,118 units in 2005 on local market, according to figures released by the Malaysian Automotive Association.

Its market share for domestic passenger cars dropped to 32 percent in year 2006, a considerable decrease compared with the nearly 60 percent market share in year 2002.

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