Wednesday, December 9, 2009

VOLKSWAGEN PATH TO WORLD DOMINATION CONTINUES WITH SUZUKI STAKE ACQUISITION



    Europe’s biggest car manufacturer Volkswagen has bought itself a 19.9% stake in Suzuki Motors of Japan. At the same time Suzuki will use up to half of the money received from VW to buy up VW shares. The German automaker said in a statement that synergies between the two companies were apparent and that the deal is a long-term strategic one.

    VW and Suzuki while being different, also have overlapping products. These include the Tiguan and Grand Vitara, Jetta and the new Kizashi, and the Polo with the Swift. Suzuki has a great foothold in the fast-growing India market where, through its Maruti Suzuki venture, it commands a 50% market share. Of course cars are not its only forte; it also makes motorbikes, marine auto solutions and all-terrain-vehicles (ATVs).

    The industry seems to be winding down and pretty soon we should see a few major giants. Recent marriages include Fiat / Chrysler, VW/ Porsche, while Mitsubishi Motors and PSA Peugeot Citroën are also talking courtship. The longest-lasting so far is the Renault/ Nissan alliance forged back in 1999.

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