[VeluM]

Awesome scoop. I recently was at the VW showroom, and the VW people confidently told me that very soon VW will own a majority stake in MSIL. MSIL will replace their diesel engine with those sourced from VW within 2 years. This will be the same engine as (or derivation of) the one in the Polo and Fabia.

I didn't believe then, but it appears to be true.

VW already has a 49% stake in MSIL, so given VWs habit of acquisition, it a appears now to be just a matter of time.

[Gannu_1]

Originally Posted by VeluM

VW already has a 49% stake in MSIL, so given VWs habit of acquisition, it a appears now to be just a matter of time.

What?!

Look at this document which explains the distribution of the shareholding among various companies. It is released every quarter by MSIL. - Link

Suzuki owns 56.21% of the net shares and the rest are divided among financial institutions such as LIC, ICICI Prudential, HSBC Global Investment Funds etc. LIC owns about 6.51% of the shares.

You can download the previous PDFs here - http://www.marutisuzuki.com/shareholding-pattern.aspx

VW owns nothing right now.

Originally Posted by VeluM

the VW people confidently told me that very soon VW will own a majority stake in MSIL.

Please take all those with a pinch of salt.

[carrerastrax]

Originally Posted by VeluM

Awesome scoop. I recently was at the VW showroom, and the VW people confidently told me that very soon VW will own a majority stake in MSIL. MSIL will replace their diesel engine with those sourced from VW within 2 years. This will be the same engine as (or derivation of) the one in the Polo and Fabia.

I didn't believe then, but it appears to be true.

VW already has a 49% stake in MSIL, so given VWs habit of acquisition, it a appears now to be just a matter of time.

Is this true? I thought VW had a 20% stake in Suzuki, Japan and the latter wants to buy it back. VW was supposed to share their hybrid and diesel technologies in return for petrol technology from Suzuki. But I guess in reality, VW really wanted a slice of Suzuki's global market share in small car space. But VW didn't share it's hybrid tech and Suzuki's rogue response was partnering with Fiat for their diesel tech.

Last I heard, Suzuki is looking for international arbitration to buy back VW's shareholding.

[a4anurag]

Originally Posted by VeluM

VW already has a 49% stake in MSIL, so given VWs habit of acquisition, it a appears now to be just a matter of time.

Originally Posted by Gannu_1

VW owns nothing right now.

VW may have stake in Suzuki's shares but not MSIL. We are getting confused with it. What pdf document you are showing is the stake holders of MSIL and NOT Suzuki. I hope you get my point.

Originally Posted by carrerastrax

Is this true? I thought VW had a 20% stake in Suzuki, Japan and the latter wants to buy it back.

After two years,*Suzuki*has finally moved to sever its partnership with*Volkswagen. The Japanese automaker claims that Volkswagen has blocked the company's attempts to access core technology as part of the original agreement, and that the two had issues seeing eye to eye on Suzuki independence. Suzuki also claims that Volkswagen has refused to resolve these issues through negotiation.Volkswagen, meanwhile, hasn't commented on the situation. As part of the announcement, Suzuki said that it seeks the return of the 19.89 percent stake that Volkswagen currently owns in the Japanese automaker through arbitration. Volkswagen purchased the shares for $2.5 billion in 2009.

Source: http://m.autoblog.com/2011/11/20/suz...s-shares-back/

Anurag.

PS: We are going off topic guys. Let's get back to the Swift rather than discuss VW and Suzuki partnership.

[djpeesh]

Originally Posted by a4anurag

PS: We are going off topic guys. Let's get back to the Swift rather than discuss VW and Suzuki partnership.

Isn't this topic on the VW-Suzuki partnership? And VW has no stake whatsoever in MSIL, although it does own 19.89 percent of Suzuki [which in turn owns 56.21 percent of MSIL]

AFAIK, there has been no progress in the arbitration, and VW can't increase its stake in Suzuki either so its a bit of a deadlock

[a4anurag]

Originally Posted by djpeesh

Isn't this topic on the VW-Suzuki partnership?

I'm sorry but the above 4-5 posts that you see including mine was moved from another thread to this today evening only. Check the dates.

The thread in which the above 4-5 posts were was a scoop showing the updates for the new swift model that is yet to be released. This topic of VW and Suzuki partnership was going in that thread which was off topic so I mentioned we were going off topic.

Anurag.

[djpeesh]

Originally Posted by a4anurag

I'm sorry but the above 4-5 posts that you see including mine was moved from another thread to this today evening only. Check the dates.

The thread in which the above 4-5 posts were was a scoop showing the updates for the new swift model that is yet to be released. This topic of VW and Suzuki partnership was going in that thread which was off topic so I mentioned we were going off topic.

Anurag.

Sorry. My bad for that. I didn't realize that it was part of another thread

[Gannu_1]

Originally Posted by a4anurag

VW may have stake in Suzuki's shares but not MSIL. We are getting confused with it. What pdf document you are showing is the stake holders of MSIL and NOT Suzuki.

Sorry but there are no confusions here! I was responding to member VeluM's post wherein he had mentioned about VW's stake in MSIL and NOT Suzuki. Thus, my whole post was aimed at clearing the air about VW-MSIL partnership.

As for Suzuki, this is the breakup of the shareholding pattern right now:



And they are struggling to get back their stake from VW. Or as Suzuki has put it in their company profile:

Suzuki formed an alliance with Volkswagen by entering into a framework agreement with Volkswagen in December 2009. The companies even established a capital relationship between them in order to develop their cooperation. However, the result was that Suzuki was compelled to terminate the said framework agreement before any projects were realized. Currently, Suzuki is engaged in proceedings at the International Court of Arbitration with a view to securing the return of its shares.

[volkman10]

VW-Suzuki would resolve their differences this Year.

Volkswagen and Suzuki are a step closer to resolving a long-running dispute over their failed partnership after a London-based court of arbitration wrapped up witness hearings, paving the way for a verdict by the end of the year.

http://europe.autonews.com/article/2...779H4126356B6Y

[desdemona]

Ah this is very interesting from Fiat-Chrysler's point of view, since the Japanese press has apparently been seeing, recently, a lot of talk that they want to replace VW as a strategic partner for Suzuki, with India, and Asia-Pac in mind. Suzuki's weakness in diesel engines and also in higher value-higher margin cars and SUVs makes them a good potential partner for Fiat.

If things move as is being speculated, it will be of some consequence for the Indian market.

[volkman10]

Suzuki, VW await arbitration decision in dispute.

Suzuki Motor Corp. said arbitration proceedings to end a long-running dispute with Volkswagen Group over a failed partnership have concluded.

The companies are now awaiting the arbitrators' ruling on the Japanese carmaker's effort to force VW to sell back a 19.9 percent stake.

Two possibilities emerge,
1. The arbitrators will grant Suzuki's wish to gain back the stock from VW.

2. The two companies resume working together

For Volkswagen, it would make sense to run a joint project that could see it sell budget cars in Asia

VW is Suzuki's biggest investor following the early 2010 purchase of the stake for 1.7 billion euros ($1.9 billion). Suzuki bought 770 million euros of VW stock, and currently holds about 1.5 percent of the German company's common shares,

The Japanese manufacturer's Maruti Suzuki India unit is the south Asian country's largest carmaker. Suzuki agreed in mid-June to cooperate with Malaysian counterpart Proton Holdings on a compact car

http://www.autonews.com/article/2015...ion-in-dispute

[volkman10]

The entire breakdown of VW- Suzuki Collaboration is due to distrust! Arbitration decision looming and not yet revealed yet.

VW said Suzuki didn't honor the alliance, complaining that Suzuki was buying engines from European rival Fiat instead of VW. Suzuki said VW welched on an agreement to compensate Suzuki for a penalty it paid after yielding to VW's request that it break a contract with Austrian engineering firm AVL List GmbH. It also claimed VW broke the bargain by not sharing its promised technology

Suzuki hoped to develop a hybrid system with Volkswagen’s help for its SX4 or Swift, above. VW said it doesn’t even share sensitive hybrid information with its Audi subsidiary.

Suzuki complained it spent four months doing a cost comparison between the A-Star and the VW Up! VW's conclusion, according to the documents, was that it didn't need the A-Star for Europe after all.

"We were responsive despite our lack of manpower, but it resulted in a waste

http://www.autonews.com/article/2015...utonews-weekly

[volkman10]

New York hedge fund takes Suzuki stake on India, end to VW arbitration

Third Point, a New York-based hedge fund run by billionaire Daniel Loeb, said it had acquired a stake in the carmaker.
The hedge fund said a resolution to the dispute is in sight. It also said that Suzuki's India unit also enjoys a “sustainable scale-based advantage” over its competitors and has “significant room” to expand its profit margins.

Suzuki has enough cash to buy back the 19.9 percent stake held by Volkswagen if it succeeds in ending the failed partnership, or will find a way to work together with shareholders if the German carmaker is able to keep its investment

Suzuki’s assets in India are worth more than the entire company’s market capitalization, and it receives a 5.5 percent royalty stream from Maruti that translates to $500 million annually, the fund said in its letter. Suzuki confirmed Third Point’s numbers were broadly correct at a briefing for its first-quarter results.

Maruti Suzuki is introducing new models in higher-end segments and using a dominant dealer service network to increase market share in India

http://europe.autonews.com/article/2...mail-ane-daily

[GTO]

Some great reading for those interesting in the topic. Autonews claims it got access to insider documents at Suzuki.

Link to article.

[RavenAvi]

Suzuki Motor is now all set to buy back the 19.9% stake which Volkswagen AG held in it's parent company.

An international arbitration tribunal has settled the dispute between the two auto majors over their failed partnership alliance.

Suzuki filed for international arbitration in November 2011, after Volkswagen refused to sell back the shares in Suzuki it acquired in January 2010 for 1.7 billion euros ($1.90 billion).

The Japanese carmaker said the arbitration panel partially upheld the German company's counterclaims of breach of contract and that any damages would be settled later.

Suzuki said it foresees no impact from the settlement on its full-year earnings.

ET Auto