Volkswagen and Proton’s alliance is to see the start of production for a local derivative of the Passat at the end of the year.

Proton will also start building VW’s Fox next year, according to a VW spokesperson in the Braunchsweiger Zeitung newspaper.

The paper also reported that VW’s Brazilian Golf model could be built in Malaysia from late 2008.

VW is targeting an increase in South-East Asian market share from less than 1% to 12%.

The Proton-built Fox