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Background of Proton

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BACKGROUND OF PROTON Proton Holdings Bhd Type Public (Bursa Malaysia: PROTON) Industry Automotive Founded 1983 Headquarters Subang Jaya and Shah Alam, Selangor Darul Ehsan Malaysia Key people Syed Zainal Abidin (Managing Director) Products Car, Automotive Parts Revenue RM8.23 billion MYR 2009 Net income RM240 million MYR 2009 Total assets RM7.52billion MYR 2009 Employees 10,300 Subsidiaries Lotus Website proton.com Proton is a Malaysian automobile manufacturer headquartered in Subang Jaya and Shah Alam, Selangor, Malaysia with a manufacturing plant in Tanjung Malim, Perak. Founded in 1983, it was Malaysia's only carmaker until the establishment of its competitor and arch-rival Perodua in 1993. Its name is a Malay acronym …show more content…

As of 3 August 2008, Proton has produced 3 million cars since 1985, where the 3 millionth car is a second-generation Saga. Joint Ventures and Partnerships Abortive strategic partnership with Volkswagen AG In October 2004, Proton announced that an understanding had been reached with Volkswagen AG of Germany to establish a strategic partnership. Under the tie-up, the two carmakers were expected to exploit each other's strengths. Proton would gain access to Volkswagen Group's superior technical capabilities and technology. In return, Volkswagen Group would utilise Proton's spare capacity at the latter's Tanjung Malim plant to assemble cars for export to the South-East Asian market, where the German auto giant had a weak presence. On 13 January 2006, Volkswagen Group finally announced that negotiations about the partnership had failed because its desires clashed with the terms and conditions offered by Proton; their interest was more in eventually controlling Proton Holdings, rather than just being a strategic partner. Despite this, Malaysian news announced that Volkswagen AG had signed an agreement to buy a 51% share in Proton on 26 January 2007, which turned out to be unfounded. Throughout most of 2007, rumours about continuing merger talks with Volkswagen Group, and occasionally General Motors surfaced in the local press and at briefings

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