VW: Going to Malaysia solo-style!

After the "No!" to the cooperation with Proton in Malaysia, VW is now going to Malaysia solo-style!

German automaker Volkswagen AG will open a car distribution company in Malaysia next month, according to a report in the financial weekly The Edge.

VW incorporated the local subsidiary Volkswagen Group Malaysia on Dec 15, and a corporate launch has been planned for February, The Edge said, citing an unnamed VW Malaysia official.

The Malaysian subsidiary will be headed by the former chief of sales for Volkswagen's Asia-Pacific market, Axel Barth, it added.

The news follows an announcement from VW last week that it has dropped plans for an alliance with Malaysian carmaker Proton after over a year of negotiations.

But VW, which has been looking to enter the Malaysian market, has also been in talks with other domestic dealers since 2002, and is expected to enlist Quasar Carriage to be its 'super dealer', said the weekly.

The Malaysian company currently distributes VW's Skoda range of cars.

'VW Malaysia prefers to have an exclusive tie-up with a player that does not currently have a major commitment to other brands. Quasar fits the bill because it is also a distributor of Skoda,' an industry player was quoted as saying.

Under the move, VW Malaysia will distribute the cars, Quasar will be its super dealer and a local conglomerate will handle the assembly of certain models, said The Edge, citing unnamed sources.