Reports today are indicating that German auto giant Volkswagen may be looking to partner with Japanese automaker Suzuki to gain access to Suzuki’s small car technology for use in emerging markets."You have see it through an Asian perspective, particularly a Japanese one. There are vehicle sizes and classes that cannot be found here," a source close to the matter told Reuters. "You only see them at the Tokyo motor show but it is undoubtedly an interesting segment, just have a quick look at the developing markets like India. It's correct that there is a gap there that could be closed."
Reuters’ anonymous source corroborated a story published earlier today in Germany’s manager magazine claiming that Volkswagen is considering taking an initial 10% stake in Suzuki to secure the deal and gain access to Suzuki’s small car technology and platforms. Volkswagen’s larger goal appears to be to increase its presence in emerging markets where tiny, inexpensive cars are fueling huge amounts of growth.While Volkswagen does have experience in small cars, such as the Polo and the Up! Concept, Suzuki knows the territory better. Suzuki also has expertise in truly small cars, ones even smaller and less powerful than Volkswagen’s. Indeed, Suzuki has been making a killing in the tiny 660cc vehicle class in Japan. Not only does it fight for domination of the segment with Toyota’s Daihatsu arm, but it has helped Suzuki become the second-ranked automaker in Japan behind Toyota. Around the corner in India, Suzuki owns 54% of Maruti Suzuki, which is India’s largest carmaker and builder of the Alto, a top-selling model in the country which shares a platform with the Nissan Pixo.Volkswagen has also signaled an interest in Suzuki in the past, making reports of a tie-up all the more credible. At the launch of the latest Volkswagen Polo in Sardinia last month, Volkswagen Chairman Ferdinand Piech was asked what other brands Volkswagen could consider buying or partnering with and responded by praising Suzuki.
Reuters’ anonymous source corroborated a story published earlier today in Germany’s manager magazine claiming that Volkswagen is considering taking an initial 10% stake in Suzuki to secure the deal and gain access to Suzuki’s small car technology and platforms. Volkswagen’s larger goal appears to be to increase its presence in emerging markets where tiny, inexpensive cars are fueling huge amounts of growth.While Volkswagen does have experience in small cars, such as the Polo and the Up! Concept, Suzuki knows the territory better. Suzuki also has expertise in truly small cars, ones even smaller and less powerful than Volkswagen’s. Indeed, Suzuki has been making a killing in the tiny 660cc vehicle class in Japan. Not only does it fight for domination of the segment with Toyota’s Daihatsu arm, but it has helped Suzuki become the second-ranked automaker in Japan behind Toyota. Around the corner in India, Suzuki owns 54% of Maruti Suzuki, which is India’s largest carmaker and builder of the Alto, a top-selling model in the country which shares a platform with the Nissan Pixo.Volkswagen has also signaled an interest in Suzuki in the past, making reports of a tie-up all the more credible. At the launch of the latest Volkswagen Polo in Sardinia last month, Volkswagen Chairman Ferdinand Piech was asked what other brands Volkswagen could consider buying or partnering with and responded by praising Suzuki.
Thanks to: Motor Trend
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