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Chinese firm launches law suit against Malaysia's Proton |
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Posted by admin
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Thursday, 18 December 2008 11:51 |
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(Radio Australia News) Malaysia's Proton car company is being sued for $US146 million by China's Goldstar Heavy Industrial, over the collapse of their joint venture plan to build vehicles in China.
Malaysia's Star Daily newspaper says Goldstar had started legal action in Guangdong province, seeking compensation over the failed venture. The two companies were to have produced vehicles in a plant in Dongguan province, but Proton reportedly said Goldstar failed to obtain a licence for the joint venture. The Malaysian firm told the daily, Goldstar's legal action contravenes the agreed arbitration process that was due to be held in Singapore in March. The Star says Proton has instead signed an agreement to partner with another Chinese firm, Jinhua Youngman Automobile Manufacturing, with the aim of selling 30,000 units of its GEN-2 model in China.
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