Proton Officially Confirms Talks With Volkswagen

SHAH ALAM, May 26 (Bernama) -- Proton Holdings Bhd has officially confirmed talks with Volkswagen and the outcome would be revealed in two weeks time.

"We will make an announcement in due course, probably in one or two weeks time," its Chairman, Datuk Nadzmi Mohd Salleh said when asked about the outcome of Proton-Volkswagen talks.

He, however, declined to provide further information on the matter.

Earlier, Proton Group Managing Director, Datuk Syed Zainal Abidin Syed Mohamed Tahir announced the results for the financial year ended March 31, 2010, here Wednesday.

For the financial year, he said Proton recorded a pre-tax profit of RM285 million compared to a pre-tax loss of RM319 million in the same period of 2009.

He said revenue grew by 27 per cent to RM8.23 billion compared to RM6.49 billion previously due to encouraging sales recorded by its three core models, the Saga, Persona and Exora.

Proton also achieved an eight per cent increase in its domestic sales volume, improving market share to 28 per cent from 26 per cent previously.

Syed Zainal Abidin said the improvement in performance was the result of a few initiatives launched by the management, including enhancing product portfolio, tightening cost management and ensuring manufacturing efficiency.

He also cited quality improvement and the strengthening of the automotive ecosystem through dealer and vendor consolidation initiatives, as other factors.

According to Syed Zainal Abidin, Proton is expected to introduce a new model either in October or November of this year.

He is optimistic that the new model will contribute significantly to Proton's ability to further increase market share.

"We will invest in the new model and ensure it is accepted both at home and in export markets," he said.

On the plant consolidation plan, Syed Zainal Abidin said a decision will be made by this year.

"A study on the consolidation plan is ongoing. This is something delicate as it will affect the entire ecosystem. We have to manage it efficiently," he stated.

Moving forward, Syed Zainal Abidin said Proton is expected to ramp-up its China project as well as finalise and execute partnerships in India and Iran.