Volkswagen is poised to take a 20 per cent stake in the Suzuki Motor Corporation in the next few days according to financial market reports.
Suzuki is an unassuming automotive giant, building 2.6m cars globally each year. However, it is the company’s expertise in small car design that is said to have attracted VW’s interest.
Suzuki also has a significant grip on the Indian market, selling various generations of its Swift and Alto small cars at different price points. It also has success with the Maruti brand in India and is the strongest player in Japan’s market for tiny K-car city vehicles.
However, Suzuki currently lacks an automotive partner. The company has long-standing ties with General Motors dating back to 1981, but GM sold 17 percent of its 20 percent stake in 2006 and the remaining 3 percent last November.
Merging the next-generation Swift and Polo could create a supermini family that would have both significant economies of scale and a global sales footprint.
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Re: VW lines up Suzuki stake
This is only a 20% stake. This is pure speculation, but this is how I see the "partnership" going.
VW get access to splash/alto platform which they use for their replacement for the Fox.
Some Suzuki cars are "badge engineered" in emerging markets (India etc) to provide VW with an easy entry to each price point.
Suzuki uses VW diesels and maybe also some of the TSI units in their European products.
Suzuki may get access to old platforms or technology that help them update their current range.
I don't think much will happen with regards to the Japanese market and maybe not even the N.American market. I don't see Suzuki turning into a Skoda/Seat, as VW won't have that level of investment - unless they want to turn Suzuki into their 4wd specialists?
Re: VW lines up Suzuki stake
its a shame to see another small manufacturer lose its independence .Suzuki are on a roll the past few years since the current Swift was introduced.its a surprise Toyota havent snapped up a chunk of their native rivals with those large cash reserves they have even in a recession
Re: VW lines up Suzuki stake
So you are saying its good for safety to know an Audi is coming up behind you? OK
Anyway back to topic, Suzuki are building some excellent cars on there own right now its a shame to see another manufacturer get sucked into the vast empire that is VW.