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:

Comments

Recommended

Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 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