Volkswagen is interested in buying part of Proton and... of Lotus

Of all the to-ing and fro-ing that has swirled around Lotus in recent times, Volkswagen now joins in , albeit indirectly. The German brand wants a greater share of the Asian market, and it seems that it is going to start by buying a minority stake in Proton, the company that currently owns the legendary Lotus.

Volkswagen has a presence in Malaysia, but it has no plants in Malaysia, so it has to rely on Proton to produce there. At present it has a kind of joint venture with DRB-HICOM to manufacture the Passat in that country, to which the Polo and the Jetta would soon be added.

For those still wondering why Volkswagen is so interested in Malaysia and the markets of Southeast Asia, the explanation is plain to see: the group sold almost 20% of all its vehicles in Asian markets last year and plans to sell more. There is also another reason that must be weighing on the final decision: Lotus.

The prospects of buying Proton go hand in hand with another purchase that is more than interesting: becoming the owner of Lotus. Who wouldn’t want to have Lotus on their side and a certain degree of control over no less than a Formula 1 team?

For the moment, we wait for the moment when Volkswagen makes another offer for Proton (as it did in the past, with negative results). There is a possibility that the Germans may want to buy the whole brand, although I imagine they would prefer to avoid the complications of buying outright a brand that belongs to the Malaysian government and doing so only partially. That said, I fear the development and outcome of Volkswagen’s purchase of Proton will be something worth watching.

Via | Reuters