VW to take stake in Suzuki

H2O · 22nd September 2009, 02:20

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 · 22nd September 2009, 04:50

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

BaCkSeAtDrIVeR · 22nd September 2009, 09:01

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

A nice analysis.

Quote:

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 · 22nd September 2009, 09:10

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 · 22nd September 2009, 09:41

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

DieselFan · 22nd September 2009, 09:54

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 · 22nd September 2009, 10:43

"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 · 22nd September 2009, 10:49

Quote:

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 · 22nd September 2009, 11:22

Quote:

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 · 22nd September 2009, 14:23

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 · 22nd September 2009, 14:32

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 · 22nd September 2009, 14:32

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 · 22nd September 2009, 14:48

Quote:

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

.

Quote:

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 · 22nd September 2009, 15:17

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 · 22nd September 2009, 15:32

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.

22nd September 2009, 02:20	#1
H2O BHPian Join Date: Sep 2009 Location: London / Vadodara Posts: 37 Thanked: 0 Times	VW to take stake in Suzuki 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.
	() Thanks

22nd September 2009, 04:50	#2
ashutoshb Senior - BHPian Join Date: Jul 2006 Location: NOIDA Posts: 1,755 Thanked: 4,287 Times View My Garage	I see diesel engines for Suzuki and VW utilising Suzuki's sales network and A.S.S in India.
	() Thanks

22nd September 2009, 09:10	#4
PAVAN KADAM BANNED Join Date: Jan 2007 Location: NAMMA BENGALURU Posts: 5,602 Thanked: 2,549 Times	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.
	() Thanks

22nd September 2009, 09:41	#5
sgiitk BANNED Join Date: Dec 2007 Location: Gurugram Posts: 7,969 Thanked: 4,788 Times	So can one expect MS to progressively switch from FIAT to VW diesels?
	() Thanks

22nd September 2009, 09:54	#6
DieselFan Senior - BHPian Join Date: Mar 2007 Location: Bangalore Posts: 1,584 Thanked: 259 Times	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.
	() Thanks

22nd September 2009, 10:43	#7
subscrive BHPian Join Date: Jan 2007 Location: Pune Posts: 258 Thanked: 30 Times View My Garage	"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.
	() Thanks

22nd September 2009, 14:23	#10
aerohit BHPian Join Date: Aug 2007 Location: India Posts: 978 Thanked: 980 Times	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.
	() Thanks

22nd September 2009, 14:32	#11
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,919 Thanked: 2,652 Times	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.
	() Thanks

22nd September 2009, 14:32	#12
Gilead Senior - BHPian Join Date: May 2009 Location: Chennai Posts: 2,142 Thanked: 60 Times	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.
	() Thanks

22nd September 2009, 15:17	#14
sgiitk BANNED Join Date: Dec 2007 Location: Gurugram Posts: 7,969 Thanked: 4,788 Times	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.
	() Thanks

22nd September 2009, 15:32	#15
Thad E Ginathom Distinguished - BHPian Join Date: Jun 2007 Location: Chennai Posts: 10,990 Thanked: 26,379 Times	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.
	() Thanks