Vw-Suzuki planned alliance may end before it is completed

Article by Christian A., 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:

Pin It

Comments

Recommended

The recent Porsche 911 is definitely considered one of the most elite sports car to grace the roads worldwide. The task of producing its successor is challenging enough for the...
by - March 29, 2017
British startup Zenos, which entered bankruptcy administration earlier this year is now back in business. The Norfolk-based sports car manufacturer was bought by a consortium of investors headed by AC...
by - March 29, 2017
It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 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