Official: Vw takes 19.9% stake in Suzuki
By Andrew C., 26 Aug, 2010. 0 Comments
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Representatives from Volkswagen Aktiengesellschaft and Suzuki Motor Corporation have signed a framework agreement that establishes a long-term strategic partnership that seeks to improve global presence and product diversity. The two companies complement each other in more ways than one in terms of product portfolio, global distribution and manufacturing capacities. Volkswagen and Suzuki acknowledge the increase in demand for more environmentally friendly vehicles and in response to this, are planning a joint approach. They believe that their respective strengths would do well in rising to the challenge of the global market. While the two companies seek a cooperative relationship, they will do so by respecting each other's independence as a stand-alone entity. To further the development of their relationship, Volkswagen will purchase 19.9% of Suzuki's issued shares. Relevant authorities would still have to approve the closing of the transaction though. The decision is expected in January 2010. Suzuki plans to invest up to on one half of the amount received from Volkswagen into shares of Volkswagen.
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