What will happen to Proton now that Volkswagen has walked away? Investors are uncertain. Find out why inside.

Talks between Volkswagen and Malaysian automaker Proton have broken down without the two sides coming to an agreement on a partnership, according to multiple published reports.  The decision by Volkswagen to pull out of talks in favor of "other priorities" led to a drop in Proton's stock by over five percent.

This is actually the second time the German automotive conglomerate and Proton held meetings.  The two sides first discussed the development of a strategic partnership in October 2004, with talks fizzling-out in January 2006 before totally collapsing by November 2007.

The dive in Proton's shares during Asian stock trading appears to demonstrate investor uncertainty in the company's ability to grow and develop.  "Proton's need for a strategic partner to leverage on to enter the global export market is crucial at this juncture before Proton gets further left behind by the competition," firm OSK Research told Forbes.

Proton is still in collaboration with Mitsubishi on certain projects.

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