VW to Acquire 20 percent Stake in Suzuki !
Posted on December 12th 2009Welcome back!
VW AG has decided to give 222.5 billion yen (USD 2.5 billion) for 19.9% stake in the Suzuki Motor Co.
VW and Suzuki Motors are planning to manufacture electric and hybrid cars under their brands together. Mr. Osamu Suzuki (Chief Executive Officer, Suzuki Mo.) said that the company would purchase as much as 50billion yen in the Wolfsburg, Germany based Volkswagen’s ordinary shares. Volkswagen will be the topmost shareholder in the Hamamatsu, Japan based Suzuki.Maruti Suzuki, the manufacturer of half of all cars sold in the country, is controlled by Suzuki. While VW is the 2nd largest overseas auto manufacturer in china, which is determined to surpass US as the largest car market in the World this year.
The automobile industry is going through a fundamental shift. Alliances are at the top of the agenda and they are indispensable for competition. The global crisis has speeded up this reorganization.
- Mr. Martin Winterkorn (VW Chief Executive) said.VW and Suzuki have been talking about their joint venture since June’09. This JV will help VW to become the world’s largest car manufacturer.
By editor in Auto Finance, Auto India News, Auto Industry News, Suzuki, Volkswagen