Volkswagen Purchases Stake in Suzuki
Tuesday, December 15th, 2009Volkswagen continues world domination attempt by purchasing 19.9% of Suzuki shares in a deal that sees both companies planning a joint approach to the growing worldwide demand for environmentally friendly vehicles.
It’s not clear if the deal will affect Suzuki motorcycles in anyway. The press release seems to focus primarily on cars, although it was taken from the Suzuki motorcycle website.
The purchasing of Suzuki shares by Volkswagen is still subject to the relevant approval and isn’t expected to go through until January 2010. Suzuki has said they intend to invest up to half of the amount received from Volkswagen into shares of Volkswagen. Surely meaning Volkswagen will be getting the deal for half-price?
Volkswagen CEO Martin Winterkorn said; “Two of the world’s leading car makers are joining forces and preparing to meet the growing challenges that lie ahead. Together we can maximize our opportunities for growth. We are proud to be cooperating with such an esteemed and valued partner.”
Mr. O. Suzuki commented; “We are very much impressed about the enthusiasm of Volkswagen towards manufacture of splendid automobiles. The companies shall cooperate taking advantage of the strength of the other with the maximum consideration to the global environment. We will also continue to extend our utmost efforts for customer satisfaction.”
Could this be VW attempting to get in on the motorcycle market? Or is, as the press release suggest, a way for VW to make environmentally friendly cars without affecting their own brands? Suzuki could end up being the “test bed” for future VW’s.
When you look at the stats you’d certainly think one of the above is true. VW has a workforce of 370,000, sold 6.3 million vehicles and had profits of 6.8 billion Euros in 2008. By contrast Suzuki has a workforce of 50,000, sold 2.3 million vehicles and 3.28 million motorcycles and has an operating profit of 534 million Euros in 2008.
What do you think?
