Proton rejects Volkswagen tie-up

NEGOTIATIONS have broken down for a second time between Malaysian car manufacturer Proton and Volkswagen amid talk that the German car giant "has other priorities".

Proton said in a statement yesterday that Volkswagen "would be an interesting collaboration partner" but it declined during preliminary talks to partner up with the firm.

The Malaysian firm said it would continue to work with other partners, such as Japanese company Mitsubishi.