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Volkswagen Might Takeover Suzuki
Volkswagen has so far not made any comment on this report. This new development adds to the discontent between the two warring carmakers. Volkswagen is by far a much bigger carmaker and has the finances to make a takeover bid. VW Group chairman Ferdinand Pietch has indicated that the carmaker would not make any take overs after the deal with Porsche did not materialise in expected.
However a takeover of Suzuki cannot be ruled out considering the importance of Suzuki for Volkswagen. The German company is desperate to get low small car technology that it currently does not have. Further it needs a stronger foothold on the Indian car market where Suzuki's Subsidiary Maruti Suzuki is the market leader.
The Volkswagen Group already has ten brands under it and is aiming to become the world's largest carmaker by 2018. An alliance with Suzuki was signed two years ago as a move to share technology. VW owns a 19.9 per cent stake in Suzuki and Suzuki owns a 1.5 per cent stake in Volkswagen.
The alliance ha not created any concrete results with both companies failing to share anything. The relationship soured two months ago when Volkswagen said it had considerable influence on the Japanese carmaker. Suzuki responded by stating they were partners and not a subsidiary. Volkswagen accused Suzuki of violating the alliance when it decided to buy diesel engine from Fiat. Suzuki Chairman Osamu Suzuki then offered to buy VW's stake in Suzuki and then end the alliance.
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