Volkswagen is “big enough” and won’t be pursuing further acquisitions, according to Chairman Ferdinand Piech. In the past week, the company had encountered setbacks to a planned merger with Porsche SE and a partnership with Suzuki Motor Corp. Piech’s statement is a far cry from what he has said in the past about wanting to purchase Fiat’s Alfa Romeo unit and to soon have 12 brands in the group (from the current 10 members).
Suzuki said this week that it intends to dissolve its 20-month-old alliance with VW as the 222.5 billion-yen ($2.9 billion) investment had not led to even a single project, according to Autonews.
VW and Suzuki also had issues on which company is taking control. On September 8, VW said that there will be no merger with Porsche in 2011 as had been planned
Jose Asumendi, an analyst with Royal Bank of Scotland, said that if VW and Porsche consolidate what they own, “they have more than enough to do” and that as soon as the issues are cleared, they will “actively start looking at other things.”
Volkswagen’s stock has fallen by 16% this year, putting the value of the carmaker at 44.9 billion euros. Chairman Osamu Suzuki said that Suzuki will aim to end the deal with Volkswagen even if VW plans otherwise.
VW Chief Executive Officer Martin Winterkorn said that talks have been scheduled so that the two companies could resolve the issues between them.