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Updated Monday, August 16, 2010 10:57 am TWN, AFP

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Volkswagen inks agreement with Malaysia's DRB-HICOM: report

KUALA LUMPUR -- Europe's biggest automaker Volkswagen is to join forces with DRB-HICOM, one of Malaysia's largest car distributors and importers, to assemble and manufacture cars in the country, a report said Sunday.

Volkswagen inked an agreement Friday with DRB-HICOM to roll-out Volkswagen vehicles at its Pekan manufacturing facility in central Pahang state, the Edge business newspaper said.

The announcement comes after national carmaker Proton in June said it had scrapped alliance talks with the German company, a move expected to dent Proton's attempts to secure export markets.

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