Volkswagen reviewing its plans to work with Suzuki

Article by Christian A., on July 28, 2011

Volkswagen is currently studying its plans to work with Suzuki, Chief Financial Officer Hans Dieter Poetsch disclosed. During a call with investors on Thursday, Poetsch disclosed that the strategic cooperation is developing more slowly than expected. He added that it is presently not being implemented with the expected level of intensity.

In December 2009, VW bought 19.9 percent of Suzuki for $2.5 billion with the anticipation that it will gain access to small car technology and it will be able to tap the market in India better. Suzuki is the leading player in India.

In exchange, Suzuki would gain access to the hybrid and other advanced technologies of Volkswagen that it cannot afford on its own.

During the early part of this month, Yasuhito Harayama, Suzuki’s Executive Vice President blamed the lack of progress of cooperation on Volkswagen's belief that it could exert influence on Suzuki management.

He added that the two companies need to go back to the drawing board on their partnership. In addition, Suzuki Chief Executive Officer Osamu Suzuki disclosed in a blog, which was published on the Nikkei newspaper's online site, that Suzuki had perused Volkswagen's technologies and "found nothing that it wanted right away."

In June, Suzuki announced an agreement to purchase 1.6-liter diesel engines from Fiat S.p.A. for a vehicle to be manufactured in Hungary. Suzuki and Harayama stated that this transaction proved that the company could do without Volkswagen.

Topics: vw, suzuki

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
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