Volkswagen To Purchase Suzuki Shares To Enter In India

Volkswagen AG is the largest automobile manufacturer in Europe,no doubt about it and Suzuki is one of the prominent Asian automobile manufacturer we are quiet sure about that also.Now Volkswagen wants to acquire a small portion of Suzuki Motors shares, collaboration between two auto companies is not a big deal.But the purpose of this deal is absolutely interesting.

Volkswagen’s boss Mr. Martin Winterkorn expressed his wish to purchase 10% of Suzuki Motor Corporation’s share to make formers entry to Indian market easy.Volkswagen’s top brass is quiet impressed with Suzuki’s success story in Indian continent, narrated by small cars.Reports indicates that Volkswagen top officials recently toured many times to Japan to discuss this possible alliance.Also Suzuki did not disappoint them, reports suggests.Volkswagen is actively pursuing their Indian dream, now they have launched their premium cars with Volkswagen Financial Services back up.

Volkswagen and their Czech subsidiary is about to make a bang in this market,they have already commissioned their manufacturing plant in Chakan,Pune.Volkswagen Polo and Skoda Fabia variants will be manufactured in this plant.it seems Volkswagen is in need of a strong player who can guide them to launch their small car in India.Suzuki will be the best partner for them as Suzuki has got proven track record in small car segment.

Suzuki Volkswagen strategic partnership is in it’s initial stage, negotiations are yet to be started.If it is going to materialize then Volkswagen is getting a proper route for launching their small cars in India and Suzuki will get access to Volkswagen’s diesel engine cache.So let us wait and watch will it happen?

[Source:- Manager Magazin]