I actually read this on The Edge Daily - VW Aims 20% out of Proton.

Proton seriously need a strategic business partner... Volkswagen is a worth-than-anything partner for Proton. For me, the issues regarding to Proton is not the quality of its product. I believe that Proton is one of the best car in the market right now. Even it ranked 2nd place for customer's experience in United Kingdom (Report on Motor Trader, Top Gear, UK), defeated a lot of household rivals including Peugeout, Mercedes, Nissan, etc.

The serious matter of Proton is their IMAGE aka REPUTATION. People at Proton seriously need an eye-opener for them. They are still believe in "pride of the nation" spirit. Yes, i salute and savour their iniative to make Proton as an entity of Malaysia. But to keep alive in this very fast growing economic, they should think of going global. To let Volkswagen to take a 20% stake in Proton probably the best decision they could ever made. It is not the matter of nation anymore, it is about surviving for the free trade and economic globalisation.

Biggest rule in business is, whatever it takes! With the M&A of Proton and VW, it will improve a lot on Proton's image. And i'm quite sure, the tie up between Proton and VW will create a bigger volume and market share for Proton in the automotive industry, not just domestically but internationally.

Our Government are afraid of getting any losses as VW stake could be increased to 50% within five years as as it will increase it share to majority. Yet again, whatever it takes! As the rumours earlier, the discussion between Proton and General Motor (GM), acquired Proton to let GM occupy Proton City in Tanjung Malim led them to non-solution discussion. As the result, GM had found their soulmate, DRB-HICOM and will produce CKD GM's cars out of DRB-HICOM plant at Pekan, Pahang. Then in November, the government announced it had decided to consider giving approval for VW to take a controlling stake in Proton’s manufacturing operations. If this decision had been made earlier, the wound of Proton would not be so bad.

Competitions are getting stiff. Proton should do whatever it takes, as they has lost market share, not just to international rivals but also to domestic carmaker Perodua. With the latest cold reception of Proton Persona (that makes me wonder was it a new model or reproduction of GEN-2) with for me, price is not the subject but REPUTATION.

Proton seriously need a brand new image. They have to keep fresh in this very industry, as there were many AP cars in the market, yet still waiting for the price reduction as the commencement of free trademarket in anytime, soon.

For my single-minded opinion, the M&A of Proton and VW will make me take a deep breath as i can have my own GOLF GTi with the price of CKD (hopes so!). I'm sure a lot of "rakyat" Malaysia would agree with this idea. Though the government will not getting richer out of this deal, it is the best way for them to reposition back Proton on the market, as all this years, the government were not geeting any out of Proton. Hence, million of RM being re-injected into Proton to make sure it keep healthy but yet, it is still not fruitful. I hope our government does not too emotional on the matter of Proton, just be liberal, think out of the rationalisation of Proton in this business. Yes, it is still a business (making money out of it) not just a "spirit of the nation" thingy. The M&A discussion will keep continue until the announcement of Proton's strategic partner in March 2008. Still, government has also held talks with VW rivals PSA Peugeot Citroen of France and General Motors of the United States.

Government, please for the very first time, make a decision on behalf of the "rakyat" who wanted to drive a CKD version of GOLF GTi!! Please!

With the market slow down in Japan, as the buyers being sceptical to their buying power. With the political drama of Shinzo Abe.

With the weakening economic performance in United States, as the economy globalisation reaching the peak. With the pap-rally of US Presidential Campaign. With the subprime mortgage financial crisis. With the severe credit crunch threatening the solvency of a number of marginal private banks and other financial institutions.

With the forced re-evaluate risks that were taking and consumers lost the ability to finance further consumer spending causing increased volatility in the fixed income, equity, and derivative markets.

With the issues regarding to Malaysia had negligible direct exposure to the US subprime crisis but it was affected by the fallout from US and global financial markets. With market was defensive due to the outflow of foreign funds and the local market is not as volatile as Hong Kong, Korea and Taiwan.

Is Economy getting any better?