Industry

VW buys 19.9 per cent stake in Suzuki

Car-driven initiative sees German giant link to Japanese firm

GERMAN CAR giant Volkswagen is purchasing a 19.9% ownership in Suzuki, financial reports from the US have said.

Visordown brought you the news the move was in the offing a few months back, and now it's been confirmed the deal has been done. Read our initial story here.

Sadly, the move is purely a car-based one, with no imminent plans to involve Suzuki motorcycles. However, Suzuki and VW will be tapping into each other's technology, so who knows what lies ahead

“Europe is shifting to compact and small cars due to rising petrol costs as well as concerns of climate change. Suzuki has the expertise to make small cars, Volkswagen does not. The German company has the expertise in environment friendly technology and has invested large sums. Combining the two will reduce cost of making new cars. Volkswagen, which has a stronger dealership network in Europe compared to Suzuki, could source small cars from India and sell them under its own brand name,” said R C Bhargava, Chairman of Maruti Suzuki.

Volkswagen has also confirmed it has officially acquired a 49.9 percent share of sportscar giant Porsche AG. The two companies have been talking about the proposed merger since May.

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