Suzuki / Volkswagen – The Next Great Merger?
Here’s one we didn’t see coming up – apparently Suzuki and VW Autos are going through a merger, which includes the acquisition of hybrid vehicle parts for both parties.You heard right – Suzuki Motor Corp., which just happens to be Japan’s second largest small car maker, and Volkswagen AG are planning an alliance that will include cooperation on hybrid vehicles and management. VW plans on sharing the diesel engine technology they’ve developed over years with Suzuki, while Suzu will dish out Japanese styling and hybrid tech to the German auto maker.
Volkswagen, Europe’s largest carmaker, agreed last month to buy a 19.9 percent stake in Suzuki for 222.5 billion yen ($2.5 billion). “The two companies plan to develop hybrids and electric vehicles together under both car brands, Suzuki said Dec. 9″ according to The Bloomberg.
Suzuki completed the sale of its shares to Volkswagen on Friday, giving the European automaker its 19.9 percent ownership, Suzuki said. Suzuki also plans to introduce electric vehicle throughout Japan in the near future.
“The company has almost half of the market share in the country and aims to boost annual production capacity to 1.5 million vehicles from 1 million now,” according to Chief Executive Officer Shinzo Nakanishi. Maruti, Suzuki’s Indian site, aims to export 130,000 to 140,000 vehicles this fiscal year, including supplying 45,000 vehicles to Nissan.
Leave a Reply