VW to take stake in Suzuki

[H2O]

VW to Partner with Suzuki in India and SE Asea.

VW to take stake in Suzuki this year: report | Deals | Reuters

FRANKFURT (Reuters) -
Vokswagen (vowg.de), Europe's largest carmaker, is expected to take a stake in Japan's Suzuki Motor by the end of 2009, German industry publication Automobilwoche report, citing an unnamed Suzuki executive.

"We expect that there will be a basic agreement this year," the publication quoted the executive as saying on the sidelines of this year's Frankfurt auto show.

"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 manager said.

Volkswagen declined to comment on the report while Suzuki Germany was not immediately available for comment.

There has been speculation previously that VW would be interested in a tie-up with Suzuki and a person familiar with the matter had told Reuters in August that talks had take place.

Last Monday, VW's Chief Executive Martin Winterkorn said that the product portfolio of Suzuki would fit well with that of VW, declining to comment further.

[ashutoshb]

I see diesel engines for Suzuki and VW utilising Suzuki's sales network and A.S.S in India.

[BaCkSeAtDrIVeR]

The Hindu Business Line : VW, Suzuki deal likely to rev up India plans

A nice analysis.

To that extent, the Suzuki association will be critical to VW though this may not take the form of a common platform overnight, churning out cars sporting each company’s badge. “VW will benefit from Maruti’s low-cost base and can look to sourcing critical parts at competitive prices,” an automotive executive said.
“In turn, the German company can offer its vast diesel engine range, which will be of immense help to Suzuki not only in India but also parts of Eastern Europe, China and even Japan,” he added. For the moment, the company uses the Fiat 1.3 Multijet diesel after years of confining itself to petrol which allowed rivals in India to make the most of the situation.

[PAVAN KADAM]

OMG. With such superior build quality like the VW's , wonder how well the Maruti can handle such thing.

Lets wait for time to tell how this conglomerate will help each other.

[sgiitk]

So can one expect MS to progressively switch from FIAT to VW diesels?

[DieselFan]

It is a great move we can now see VW car After Sales Service coming from MASS and that would give a good jump to VW brand in India. I would now love to buy VW cars in the future.

[subscrive]

"So can one expect MS to progressively switch from FIAT to VW diesels?"

What do you mean by switch?
From whatever I know, MJD is designed by Fiat, Suzuki and some-other-company-which-i-dont-remember.

[neoonwheels]

Originally Posted by subscrive

"So can one expect MS to progressively switch from FIAT to VW diesels?"

What do you mean by switch?
From whatever I know, MJD is designed by Fiat, Suzuki and some-other-company-which-i-dont-remember.

It was not Suzuki but GM.

[gomzi]

Originally Posted by DieselFan

It is a great move we can now see VW car After Sales Service coming from MASS and that would give a good jump to VW brand in India. I would now love to buy VW cars in the future.

My thoughts exactly! With VW rumored to be gunning for sales volumes in India with the Polo in the near future, I was wondering how safe will it be to buy it, without a widespread A.S.S network.

This move might answer some questions on that front.

[aerohit]

Since the target country stake of the Headquarters are based in Japan, being an international transaction - this thread may be moved to International Automotive Scene.

[Zappo]

Aero, the talk is for a tie-up between Suzuki and VW for Asia. Could have much value and significance in the Indian Car Scene than elsewhere. Whatever be the deal something tells me that India may very well be there in the thick of things if it comes to fruition.

[Gilead]

Alright, now that sheds some visibility into VW's plans for global domination. With Suzuki's help in Asia, it's only a matter of time before they beat Toyota. I would love to see VW's being sold and serviced by Maruti, but I think VW might stick to it's own network. Maruti will be leveraged for parts sharing, components sourcing etc.

[amit]

we can now see VW car After Sales Service coming from MASS

Where is it mentioned that VW servicing will be done at Maruti dealerships? I don't think Maruti will allow that. Besides, there will be accusations of step motherly treatment very soon .

In turn, the German company can offer its vast diesel engine range, which will be of immense help to Suzuki not only in India

So after outselling Fiat's using their engines, Maruti now wants to outsell VW's using their CRdi engines?

[sgiitk]

I have the highest regard for FIATs Multijet. First to go for pre-injection to reduce knock noise, first with multi-injection per stroke, etc. etc.

[Thad E Ginathom]

Didn't I see recently that Suzuki was one of the most successful car companies of the present, troubled times, and largely because of Maruti sales in India?

Maruti, with a touch of VW quality, would be a real winner, if the prices could be kept under control.