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Volkswagen and Suzuki Heading For A Clash
Suzuki MD and Chairman Osamu Suzuki in his blog has listed out some of his thoughts about Suzuki and Volkswagen's agreement. According to him Suzuki would like to be considered as a partner of Volkswagen rather than being seen as a subsidiary of the Volkswagen Group. He has also emphasized that Volkswagen did not have any technology that excites Suzuki. He has also said his engineers had developed several interesting technologies for the future.
Volkswagen on its part has said Suzuki had not co-operated with it so far. Volkswagen started this partnership hoping Suzuki's expertise of building small cars would help it reduce costs. Suzuki had though working with a bigger carmaker would help it reach more markets. A recent decision by Suzuki to acquire Fiat's diesel engines rather than Volkswagen's clearly indicates the rift between the two partners.
Both the carmakers have to sort out their differences if the agreement has to work. Volkswagen believes its partnership will help it build small cars at a lower costs. Suzuki is yet to show evident interest in helping Volkswagen. Osamu Suzuki's view on Suzuki's agreement with Volkswagen clearly shows signs of Volkswagen trying to push the Japanese carmaker.
Suzuki is a carmaker that has grown by its own efforts and sees this partnership with a bigger company as a means of loosing its independence. Volkswagen which has taken over several brands over the past few years. This will add Suzuki's insecurity. If Volkswagen has to obtain some value through its agreement with Suzuki it has to deal with The Japanese carmaker's apprehensions.
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