Vw-Suzuki planned alliance may end before it is completed

Article by Christian Andrei, on September 8, 2011

The planned alliance of Volkswagen AG and Suzuki Motor Corp. may just end before it is completed. The argument started in March when VW stated in its annual report that it could "significantly influence financial and operating policy decisions" at Suzuki, which it described as an “associate.”

That did not sit well with Suzuki. Since then, the two companies have been arguing back and forth, prompting VW to stop its efforts to invest 222.5 billion yen or $2.9 billion into an operational alliance.

The partnership was supposed to merge Volkswagen's international scope as the third largest vehicle manufacturer in the world and Suzuki's prominent position in India, which is the second fastest emerging major economy in Asia, says Autonews.

In December 2009, the alliance was formed with VW owning 20 percent of Suzuki.

The partners announced that they aimed to cooperate on technology related to electric and hybrid vehicles. They also aimed to enter emerging markets.

However, no joint projects were created in two years after the alliance was made. VW is targeting to outperform General Motors Co. and Toyota Motor Corp. as the largest vehicle manufacturer in the world by 2018.

It also aims to expand its market to India in order to increase sales. After selling 7.2 million units in 2010, VW estimated that deliveries will increase 5 percent this year.

Meanwhile, Suzuki sold 2.64 million units in its last fiscal year, 1.13 million of which were in India. On the other hand, VW sold 53,300 units in 2010 in the country.

Topics: vw, suzuki, partnership

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nikola Motor’s hydrogen-powered semi-trailer truck is highly appealing with its many advancements but don’t expect it to arrive in the near future. In November 2016, Toyota announced the possibility of...
by - December 5, 2016
Usually, it is up to resourceful spy photographers to take clear pictures of vehicle prototypes, especially those that have aroused a lot of interest. The same is true for Project...
by - December 5, 2016
The much-anticipated debut of the new Wrangler will surely happen. As it approaches, we’ve gathered all the latest information released so far. Of course, most are expecting that the next...
by - December 5, 2016
Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 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