Suzuki and Volkswagen to begin work on joint projects in January 2010

Article by Christian Andrei, on August 25, 2009

Immediately after the holidays end, Suzuki Motor Corp. and Volkswagen AG will begin work on joint projects, Suzuki CEO Osamu Suzuki said last Wednesday. Suzuki, Japan's fourth-largest automaker, and VW announced a comprehensive tie-up that is set to start around January 10. Under the deal, VW will take 19.9% of Suzuki.

At the launch of the new Alto minicar in Tokyo, the Suzuki CEO said that the two carmakers have an understanding of what they want from each other. The CEO further said that actual, detailed execution will be after January. The new partners have reportedly said that as key to expanding sales in developing countries, it wants to create a competitive small car.

Indian newspaper Economic Times has quoted a top Maruti Suzuki India official to have said that VW and Suzuki may develop a small car that would cost $4,300-$5,400. Suzuki responds, saying that Suzuki Motor has authority over this, not (Indian subsidiary) Maruti.

Apparently feeling the need to explain, Maruti Chairman R.C. Bhargava said the parent company, not Maruti Suzuki, is speaking directly with VW. To clarify his comments, Bhargava said that one of the possibilities is that Volkswagen could outsource a small car from it.

Various analysts have said that to jointly develop a small, low-cost car would be beneficial to both parties. VW will have access to the expertise of profitably making small cars and Suzuki will be more cost-competitive due to the economies of scale.

Topics: suzuki, vw

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries