Suzuki to take a stake in Volkswagen AG soon
By Andrew C., 26 Aug, 2010. 0 Comments
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Suzuki Motor Corp. is eager to take a stake in Volkswagen AG soon but since its floating shares are limited, the European automaker looks for shareholders willing to sell to Suzuki, according to Osamu Suzuki, the chairman and CEO of the Japanese carmaker. Last month, Suzuki and VW announced a comprehensive tie-up, giving VW a 19.9% stake. This means that VW is now Suzuki's biggest shareholder. Cross-shareholding between the two companies is part of the pact. Suzuki said that VW is now looking for potential sellers. He said Suzuki plans to procure diesel engines from VW, and the maker of Swift and Alto hatchback cars will review its ties with PSA/Peugeot-Citroen SA and Renault SA, which currently supply diesel engines to Suzuki. Because of the challenges that are facing the car industry today, the automakers are joining forces to save billions that each would need to develop state-of-the-art powertrains.
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