Malaysia PM yet to meet Volkswagen chief on Proton

KUALA LUMPUR, Apr 9 (Reuters) Malaysian Prime Minister Abdullah Ahmad Badawi has not met the chairman of Volkswagen AG for talks on a possible tie-up with state controlled carmaker Proton Holdings , the premier said on Monday.

Loss-making Proton, which faces shrinking market share in an increasingly competitive domestic market, is looking to tie up with a global car-maker to boost its overseas sales. Its main asset is a modern, low-cost production line north of the capital.

''I have not seen him yet,'' Abdullah told reporters in reply to a question whether he had met the chairman of the German carmaker. ''He has not made an appearance here. I don't think I can wait too long. I can't be waiting forever.'' Pressed further for the date of the meeting, he said, ''I will not tell you when.'' There are growing suspicions that Volkswagen will not go ahead with an investment in Proton. Once before, in 2005, Volkswagen explored an alliance with Proton but the talks failed.

Early this month Abdullah said Malaysia was still talking with General Motors Corp about a possible tie-up with Proton, but he gave no details of the talks.

REUTERS CS DS1623