Proton posts $266m loss; talks with VW collapse

The Straits Times, June 1, 2007

KUALA LUMPUR - PROTON Holdings incurred its first annual loss in at least 17 years, underlining the Malaysian carmaker's need to reach an agreement with potential alliance partners.

Compounding the bad news, Malaysian Prime Minister Abdullah Badawi said yesterday that talks for Germany's Volkswagen (VW) to buy a stake in the state-owned carmaker had fallen through and Proton will talk to other parties for a tie-up.

The government had said early this year it was in talks with several carmakers, including VW and General Motors, but it missed an end-March deadline to announce a deal.

Proton said yesterday its net loss was RM591.4 million (S$266.1 million) in the year ended March 31, compared with a profit of RM46.4 million a year earlier.

BLOOMBERG NEWS, REUTERS