Loss-making national car manufacturer Proton said today it was pinning its hopes on exports to Asia and Europe, as well as new models to perk up dismal sales in the domestic market.

Proton chairman Mohamed Azlan Hashim also said that negotiations for a tie-up with Germany's Volkswagen, which could secure the future of the troubled Malaysian firm, were still on the table.

"We have already left the matter to the government and we are waiting for the green light," Azlan told an annual general meeting.

"The good news is we are still talking. Things are happening. Discussions are on-going (and) hopefully we will resolve it soon."

Second Finance Minister Nor Mohamed Yakcop said last week that he hoped the deal would be wrapped up by the end of the year.

Proton needs foreign technical expertise to stem a sharp decline in market share and to cut a stream of red ink, including a RM46.75 million loss for the first quarter to June announced this week.

Azlan said he was convinced that buoyant sales of the new Persona mid-sized sedan and a stronger export performance would turn around the automaker's fortunes.

"It does not matter if we have already posted a loss in the first quarter. The next three quarters will see a reverse trend and we are very sure of that," he told the meeting.

"Our export figures have been great. China has already booked 30,000 units from us and that alone is the best we have posted in the history of Proton," he said.

"Now we also have bookings in Indonesia while our Europe sales have also showed signs of improvement."

Another model in January

Proton, which has been criticised for a lack of new models, said that apart from the Persona launched just weeks ago, it will introduce another model in January to replace its ageing workhorse, the Iswara.

Proton last year lost its status as Malaysia's biggest-selling automaker to homegrown rival Perodua.

The automaker, launched in the mid-1980s as a showcase of Malaysian manufacturing ability, has been unable to cope with a wave of competiton since the government began cutting protectionist measures several years ago.

There is speculation that Volkswagen is negotiating to take a controlling stake in Proton's manufacturing division.

Shares in Proton rallied on news from the AGM, rising 10 sen to RM5.45 by the close today, well up from a low of RM5.05 on Tuesday when the quarterly loss was announced.