Volkswagen reviewing its plans to work with Suzuki

Article by Christian A., on July 28, 2011

Volkswagen is currently studying its plans to work with Suzuki, Chief Financial Officer Hans Dieter Poetsch disclosed. During a call with investors on Thursday, Poetsch disclosed that the strategic cooperation is developing more slowly than expected. He added that it is presently not being implemented with the expected level of intensity.

In December 2009, VW bought 19.9 percent of Suzuki for $2.5 billion with the anticipation that it will gain access to small car technology and it will be able to tap the market in India better. Suzuki is the leading player in India.

In exchange, Suzuki would gain access to the hybrid and other advanced technologies of Volkswagen that it cannot afford on its own.

During the early part of this month, Yasuhito Harayama, Suzuki’s Executive Vice President blamed the lack of progress of cooperation on Volkswagen's belief that it could exert influence on Suzuki management.

He added that the two companies need to go back to the drawing board on their partnership. In addition, Suzuki Chief Executive Officer Osamu Suzuki disclosed in a blog, which was published on the Nikkei newspaper's online site, that Suzuki had perused Volkswagen's technologies and "found nothing that it wanted right away."

In June, Suzuki announced an agreement to purchase 1.6-liter diesel engines from Fiat S.p.A. for a vehicle to be manufactured in Hungary. Suzuki and Harayama stated that this transaction proved that the company could do without Volkswagen.

Topics: vw, suzuki

If you liked the article, share on:

Comments

Recommended

What has BMW been up to lately? The company recently announced that they are currently focusing on electrification, and so far, their new architecture will enable “electrification of every model...
by - July 26, 2017
A couple of days ago, Ford came out with their pursuit-rated F-150 Police Responder, and we were quite impressed with what it has to offer. And we are pretty sure...
by - July 26, 2017
Aside from fronting Honda’s annual summer tour, pop rock band OneRepublic was also given an opportunity to customize a 2017 Honda Civic Type R. The car is a one-off and...
by - July 26, 2017
Everyone seems to know that the Alfa Romeo Giulia has been recently experiencing problems. Turns out, the blame goes to Giulia’s software. Reid Bigland, big time executive from Alfa Romeo...
by - July 26, 2017
Romanian automotive media publication cars.ro earlier said that the new Ford Fiesta will no longer be offered in the United States. Robert Stiller, Ford’s vehicle program manager for the B-segment,...
by - July 26, 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