Malaysia's leader on Wednesday expressed confidence that national car maker Proton could rebound from losses despite ending alliance talks with Volkswagen AG and General Motors, ACCORDING TO AP. Malaysian Prime Minister Abdullah Ahmad Badawi said he would not rule out any foreign tie-up in the future, but said that the issue of bailing out Proton has not come up as the company had begun to turn around. «No question of a bailing out. Proton is doing well today ... they have a good program, they have secured exports to India, China, Indonesia and the Middle East,» he told reporters on the sidelines of the Association of Southeast Asian Nations' summit in Singapore. «Proton should be given a chance,» he said. «I believe this will be a successful turnaround.» Proton shares plunged 18.6 percent to their lowest level in seven years Wednesday after the government's investment arm Khazanah Nasional said late Tuesday it has stopped talking with Germany's Volkswagen AG and U.S.-based General Motors Corp. about strategic tie-ups. Money-losing Proton had been in talks with the companies about partnerships to help reverse its fortunes. However, Khazanah said Malaysian officials have recently noted positive developments at Proton, including improvements in domestic sales and exports. The announcement caught industry observers by surprise and many analysts questioned the long-term viability of the beleaguered automaker. Abdullah said that foreign alliances were still possible in the future. «Certainly I don't want to rule out (future tie-ups) but I think Proton will be in a better position to really be a good strategic partner in the future,» he said.
