Eyeing India Market, VW Buys 20% of Suzuki

[Coventina]

Source: Business Week

Posted 45 minutes ago:

(Bloomberg) — Volkswagen, Europe's largest carmaker, agreed to buy a 19.9 percent stake in Suzuki Motor Corp. for 222.5 billion yen ($2.5 billion) and jointly develop vehicles for emerging markets to challenge global leader Toyota Motor.

VW and Suzuki plan to develop hybrids and electric vehicles under both car brands, Suzuki Chief Executive Officer Osamu Suzuki said today at a joint press conference with VW in Tokyo. Suzuki will buy as much as 50 billion yen in Wolfsburg, Germany- based VW's ordinary shares, while VW will become the top shareholder in Hamamatsu, Japan-based Suzuki.

Suzuki controls Maruti Suzuki India Ltd., the maker of half of all cars sold in India, and VW is the second-biggest overseas automaker in China, which is set to surpass the U.S. as the world's largest car market this year. Combined annual worldwide sales of the two manufacturers will exceed 8 million cars, accelerating VW CEO Martin Winterkorn's goal of toppling Toyota City, Japan-based Toyota in deliveries by 2018.



Read more: http://www.businessweek.com/globalbiz/content/dec2009/gb2009129_356231.htm

[pampango]

1. "VW and Suzuki plan to develop hybrids and electric vehicles under both car brands".

That sounds good.