Volkswagen will take a 10 percent stake in Suzuki. What do they have planned?
In an interesting move, Volkswagen has reported that they will be taking a 10 percent stake in Suzuki by the end of the year. Volkswagen recently closed the deal with ownership of Porsche, so one has to ask why take a stake in this company?
Suzuki was originally denying the purchase, a executive from the company revealed the offer will go forward and said “We expect that there will be a basic agreement this year”. He also said “For Suzuki and VW this connection would be a win-win situation. Suzuki would have access to a variety of VW’s technology, while Volkswagen would have a solid supporting leg in India and Southeast Asia”.
Suzuki is popular in the domestic automotive market. The Japanese company is one of the industry leaders in its home market, although it has not done well to secure a strong grip in any market outside of Southeast Asia.
Volkswagen, which recently took control of Porsche, will reportedly take an approximately 10 percent stake in Suzuki by the close of the current calendar year.
Despite earlier denials from Suzuki, Germany’s Automobilwoche quotes an unnamed Suzuki executive as saying, “We expect that there will be a basic agreement this year.”
“For Suzuki and VW this connection would be a win-win situation. Suzuki would have access to a variety of VW’s technology, while Volkswagen would have a solid supporting leg in India and Southeast Asia,” the high-ranking employee told the publication.
September 22, 2009
Car News