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Old 30th August 2015, 19:05   #106
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Default Re: Suzuki not interested in collaborating with VW in India. EDIT : Looking for a way out

The Wall Street Journal says the 19.9% stake in Suzuki which was purchased by VW for around 1.7 billion ($1.9 billion at current exchange rates) is now worth $3.8 billion at the close of trading Friday.

Gulp! The collaboration was quite a bad one for Suzuki from a resource point of view. Money and most importantly time of the top management. Time which could have been utilized much better. Suzuki is cash rich (nearly 1 trillion yen in reserves as of the end of March). Anyways, Hindsight is 20/20.

Suzuki also owns 1.5% stake in VW.

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Old 30th August 2015, 22:49   #107
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Default Re: Suzuki not interested in collaborating with VW in India. EDIT : Looking for a way out


Finally relief for Suzuki I suppose, definitely a loss for Volkswagen.
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Old 31st August 2015, 11:23   #108
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Default Re: Suzuki not interested in collaborating with VW in India. EDIT : Looking for a way out

This is an interesting case of how a JV between two car makers of two different aspirations cannot form a successful JV.
Suzuki is primarily a two wheeler + kei car maker, with aspirations to produce premium cars. However, VW is primarily a premium car maker with questionable aspirations to make small cars. (I do not think VW is going to build anything smaller than Polo)
Suzuki wanted some hybrid technologies from VW, to be shared to make this a useful venture. Fair enough.
However, VW wanted to stop Suzuki from sourcing the diesel engines from Fiat. If Suzuki had agreed to that, it would have resulted in a big blow to Suzuki. Consider, India for a moment - the most successful diesel cars MSIL had sold so far are made from Fiat engines. Dropping this, and moving on to some other unknown VW sourced engines, would definitely lead to cost, FE, resource, and many other concerns to Suzuki, and thereby would have resulted in MSIL (India being Suzuki's major market) getting dethroned by fierce competition.
For me it looks like VW wanted to cause such internal troubles to Suzuki, than to gain anything from the partnership with them.
Now this matter is being settled at court, I can see how it can be a huge relief for Suzuki. Good riddance!

Last edited by hybridpetrol : 31st August 2015 at 11:26.
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