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

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 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