VW Buys Suzuki Stakes,Like We Reported In January 2009!!

Wheelosphere brought the story about VW’s Plans To Purchase Suzuki shares six months back.After a delay which is more than expected, today Suzuki announced the strategic alliance with Volkswagen.After initial reports suggesting such move in January 2009,Suzuki top officials clarified that there was no such plans or discussions initiated.But VW officials were  tight lipped.Leave the past today VW purchased  20% shares of Suzuki Motors for hefty $2.5 Billion.

VW’s intentions are clear, they want to have a larger pie of Asian markets, read India,Japan.These markets are known for their strong affection to Suzuki’s small cars.By acquiring Suzuki shares,VW  may able surpass current World number no-1,Toyota Motor Corporation in comfortable margin.VW’s gains are not limited to this,they were actively searching for a brand for entering two wheeler segment.Suzuki has got a full fledge line up of motor cycles and scooters.Thus Germans got access to this shores as well.

So how about Suzuki?They are badly performing in American markets for the last few months.They even considered exit from U.S. markets due to poor sales figures.Suzuki thus got a good support from VW America there.In addition to this, big booty of  $2.5 Billion, they got access to VW as well.As part of the agreement Suzuki will purchase VW shares worth half of the $2.5 Billion.

Volkswagen and Suzuki partnership is one the largest in automobile industry and will definitely act as a catalyst for such partnerships in future.VW holds very strong position in China, while Suzuki rules Indian car market by holding nearly 50 percentage.The former is all set for India entry in a big way with launch of Polo Hatchback and Sedan variants.They are also planning to produce VW UP! in India.So we see the possibility of  VW UP!    rolling out of Suzuki plants  in India.

If you would like to read company press release go ahead!

Tokyo, 9th December 2009
Volkswagen AG
Suzuki Motor Corporation

 
VW and Suzuki enter comprehensive partnership

Volkswagen AG (Wolfsburg, Germany “Volkswagen”) and Suzuki Motor Corporation (Hamamatsu, Japan “Suzuki”) have reached a  common understanding to establish a comprehensive partnership. A framework agreement has been signed by representatives of both companies today.

In terms of global presence and product diversity, the partnership marks an important
step towards the future for both Volkswagen and Suzuki. In  terms of product portfolio,
global distribution  and manufacturing capacities, Volkswagen and Suzuki ideally
complement each other. The companies plan a joint approach to the growing worldwide
demand  for more environmentally friendly vehicles. The management of Volkswagen
and Suzuki have concluded that the complementary strengths of each company make
for a perfect fit in exploiting their respective advantages as well as  rising to the
challenge of the global market.  
In the automotive industry, where globalization and diversification proceed  in parallel,
both companies will establish a cooperative relationship while  respecting each other’s
independence as a stand-alone entity. Both parties are focused on achieving synergies
in the areas of  rapidly growing emerging markets as well as  in  the development and
manufacturing of innovative and environmentally friendly compact cars.
To support a smooth development of this relationship, Volkswagen will purchase 19.9%
of Suzuki’s  issued shares. The Closing of the transaction is subject to approval of the
relevant authorities and is expected in January 2010. Suzuki intends to invest up to one
half of the amount  received from Volkswagen into shares of  Volkswagen. Both
companies will  form a  long-term strategic partnership based on  this which will support
their successful strategies in these challenging times.
“Two of the world’s leading car makers are joining forces and preparing to meet the growing challenges that lie ahead.  Together we can maximize our opportunities for
growth. We are proud to be cooperating with such an esteemed and valued partner”,
Volkswagen CEO Martin Winterkorn said.  
Mr. O. Suzuki spoke that  “We were very much impressed about the enthusiasm of
Volkswagen towards manufacture of splendid automobiles.   The companies shall
cooperate taking advantage of the strength of the other with the maximum consideration
to the global environment.  We will also continue to extend our utmost efforts for
customer satisfaction.   
As demand continues to rise for smaller cars and for  powertrains  with higher fuel
efficiency and lower CO2 output, Volkswagen and Suzuki will offer a compelling solution
for customers in emerging markets buying a car for the first time and also for customers
in advanced economies  seeking to lower their CO2  footprint while still enjoying the
freedom of transport offered by an exciting range of cars.

So quiet a lot happening here, stay with us for such unique news from automobile industry.

Subscribe to Wheelosphere In A Reader

Subscribe to Wheelosphere by Email