Volkswagen will go ahead and buy a 20-percent stake in Suzuki at a cost of $2.5 billion. VW is expected to increase its stake in the Japanese automaker. In Japan, a stake of 33 percent or more gives a shareholder effective management control over a company.
Suzuki will invest about half the proceeds from the purchase for a 2.5-percent voting stake in Volkswagen.
At a joint press conference in Tokyo, Volkswagen Chief Executive Martin Winterkorn said, In partnership with Suzuki, the Volkswagen Group can take a big step forward in the compact-car segment, particularly in the emerging markets in Asia. In turn, Suzuki can benefit from our experience with efficient and environmentally friendly vehicles."
Meanwhile, Suzuki's CEO, Osamu Suzuki, responded to questions about whether Suzuki would get a German CEO sharply, "I don't want you to misunderstand: Suzuki is not becoming a 12th brand for Volkswagen. I don't want other folks telling me how to do things."
Also today, Suzuki announced it is ending its partnership with GM on the CAMI Automotive plant, which stopped building the Suzuki XL7 at the end of the 2009 model year. (The plant still builds the Chevrolet Equinox and GMC Terrain.)
stephen987 says:
07:31 AM, 12/ 9/09
On the whole, I'm more intrigued by the prospects of a PSA-Mitsubishi hookup. Imagine the innards of an Evo or Ralliart, packaged in Citroen C3 clothes. . .