Volkswagen says it is big enough, doesn’t need new acquisitions

Article by Christian A., on September 16, 2011

Volkswagen is “big enough” and won’t be pursuing further acquisitions, according to Chairman Ferdinand Piech. In the past week, the company had encountered setbacks to a planned merger with Porsche SE and a partnership with Suzuki Motor Corp. Piech’s statement is a far cry from what he has said in the past about wanting to purchase Fiat’s Alfa Romeo unit and to soon have 12 brands in the group (from the current 10 members).

Suzuki said this week that it intends to dissolve its 20-month-old alliance with VW as the 222.5 billion-yen ($2.9 billion) investment had not led to even a single project, according to Autonews.

VW and Suzuki also had issues on which company is taking control. On September 8, VW said that there will be no merger with Porsche in 2011 as had been planned

Jose Asumendi, an analyst with Royal Bank of Scotland, said that if VW and Porsche consolidate what they own, “they have more than enough to do” and that as soon as the issues are cleared, they will “actively start looking at other things.”

Volkswagen’s stock has fallen by 16% this year, putting the value of the carmaker at 44.9 billion euros. Chairman Osamu Suzuki said that Suzuki will aim to end the deal with Volkswagen even if VW plans otherwise.

VW Chief Executive Officer Martin Winterkorn said that talks have been scheduled so that the two companies could resolve the issues between them.

Topics: vw

If you liked the article, share on:

Comments

Recommended

Is there anything more exciting than a spoiler? Well, for those who didn't know, there are those who have already seen the Mercedes-AMG Project One (in the flesh) way before...
by - April 25, 2017
Does the Honda Passport ring a bell to you? This was the first ever SUV that was sold by the Japanese automaker, but it was not that successful compared with...
by - April 25, 2017
Wagon buyers who prefer their vehicle to be luxurious, you will have an entirely brand new selection at the latter part of this year. Porsche will start rolling out 4...
by - April 25, 2017
McLaren rejects the idea of creating anything other than a sports car. That means that vehicles that would be ideal for families such as an SUV or a crossover are...
by - April 25, 2017
The new and improved Opel Grandland X is out, and this large SUV is something the European market did not know they would need. Now measuring at 14.7 feet (4.48...
by - April 25, 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