In the news: Volkswagen, Europe’s largest automaker and producer of the popular brand of VW clutch parts including various VW clutch disc— has released some statements saying that its partnership with Malaysia’s Proton Holdings Bhd is already at its “fairly advanced” stage . The automaker also added that the ongoing talks between them and Proton are part of the company’s plan of expanding its market in Southeast Asia. According to Kevin Rose, Volkswagen’s head of international sales in an interview, “Both parties clearly know what they would want from such an agreement.” He also said that the company will try to “work within” the Malaysian government’s set deadline which will end on March 31, 2007.

Still in connection to its sales expansion program, Volkswagen has also added production plants in two of the fastest growing economies in the world—India and China. The main objective of VW is to boost its sales of its Passat and Jetta models in these two countries. It should be noted that Proton has again reported last month its biggest quarterly loss for the last eight years and has been continuously losing market share to its other overseas rivals including Toyota Motor Corporation. It also needs some new technology and designs to become competitive.

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