Volkswagen is to buy a controlling 51% stake in Malaysian state-owned manufacturer Proton, according to Asian business news reports.

The move will give Volkswagen control of British car-maker Group Lotus, in which Proton has an 80% share. As of yet any impact this will have on Lotus is unclear.

Speculation has been growing that Proton would be acquired by a Western manufacturer, with GM and PSA previously being linked to the sale.