The Malaysian government says it will allow Volkswagen AG to buy a stake in Proton Holdings Bhd as part of an alliance to help the national car company compete more effectively. VW and Proton signed a cooperation agreement last October, with plans calling for the launch of local assembly of two VW models in Malaysia by the end of 2005. They include a version of the Brazilian-made Fox and a Passat-based car. Recently, the two have been in talks over VW taking an equity stake in Proton, ...

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