The on-again, off-again talks between Volkswagen and Proton about a potential partnership seem to be off-again, and this time it's likely for good. The German and Malaysian automakers first began talking back in 2007 before breaking things off. Recently, however, some high-level discussions have occurred that included the possibility of Proton doing final assembly of complete-knock-down (CKD) kits in Malaysia.

Volkswagen has not made an official announcement, but Proton has issued a media release in Malaysia. It's not clear at this time if Volkswagen still plans to produce cars from CKDs in Malaysia or it will set up its own facility.

Proton will apparently move forward on its own with engineering help from its wholly owned subsidiary at Lotus in the UK.

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