Cars
Volkswagen Agrees to Buy 19.9 Stake in Suzuki as it Eyes Small car and Indian Markets
Confirming rumors that have been circulating for the past few months, Volkswagen and Suzuki announced on Wednesday that they have reached a common understanding to establish a close long-term strategic partnership.Under the agreement, VW will buy a 19.9 per cent stake in Suzuki Motor Corp for 225 billion Yen (approx US$2.5 billion) while the Japanese automaker will invest up to one half of the amount received from the German automaker into shares of Volkswagen.
The move comes only a few days after the Volkswagen Group announced that it acquired a 49.9% stake in Porsche AG's car operations for €3.9 billion.
Volkswagen plans to make the best of Suzuki's expertise in small, fuel-efficient cars as well the Japanese firm's presence in India where it controls Maruti Suzuki India Ltd, the maker of half of all cars sold in the country.
At a joint press conference in Tokyo, Suzuki Chief Executive Officer Osamu Suzuki said that the two companies also plan to develop hybrid and electric vehicles under both brands.
"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," VW said in a prepared statement to the press.
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Suzuki Moves Ahead Without Vw And Signs New Diesel Engine Deal With Fiat
Regular readers will no doubt remember the clash between the Volkswagen Group and Suzuki Motors with the Germans refusing to let go of their 19.9 percent equity stake in the Japanese company and Suzuki taking the matter to the international court. While...
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Vw Group Says "nein" To Suzuki's Request To Return Its Shares
The feud between Volkswagen Group and Suzuki Motors Corp. continued on Monday as the German automaker issued a press statement saying that it has no intention to sell its 19.9 percent stake in the Japanese company despite the latter's request to...
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Official: Vw Says Suzuki Violated Agreement By Purchasing Diesel Engines From Fiat
It's no secret that Volkswagen's business relationship with Suzuki after the Germans acquired a 19.9 percent of the Japanese manufacture's shares in December 2009 under a strategic cooperation has been a deeply troubled one. However, up until...
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Vw And Suzuki Reportedly Planning To Develop $4300-$5300 Low Cost Small Car For India And Europe
The newly forged Volkswagen Group - Suzuki alliance plans to develop a new low cost small car for India as well as Europe and other markets, the Economic Times reported on Friday. The business daily said that the new vehicle, which will act as a replacement...
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Gm Sells Leftover Suzuki Stake To Raise Cash
While awaiting a decision on a $25 billion U.S. government aid for the auto industry, cash-strapped General Motors decided to sell back its 3.0 percent stake in Suzuki Motor Cooperation for 22.37 billion yen or $230 million. Suzuki issued an official...
Cars