Japanese automaker Mitsubishi Motors has ruled out jointly manufacturing and assembling its vehicles locally with embattled Malaysian carmaker Proton, a report said today.

Mitsubishi Motors Malaysia, which distributes the company's vehicles in Malaysia, has reportedly said it was looking into assembling its cars in partnership with car manufacturers, including Proton.

But the Japanese company, which partly established the Malaysian carmaker, said it had no deal planned with Proton.

"Mitsubishi Motors provides production parts and components to Proton, based on a technical assistance agreement," the company said in a statement to the New Straits Times newspaper.

"However, we do not have any plans to launch a new plant in Malaysia as a joint venture," it said.

Falling Proton sales

Proton was formed in 1983 by Malaysian companies as well as Mitsubishi Motors and some Mitsubishi group companies.

Mitsubishi Motors sold its entire 7.93 percent stake in Proton in 2004 to stem its losses after slumping sales in North America, and in the face of falling Proton sales over foreign competition.

Proton was dealt a major blow during the week when German carmaker Volkswagen abandoned plans for an alliance seen as crucial to the national carmaker's survival.