Automakers to jointly work on small cars
Suzuki Motor Corporation (Japan) and Volkswagen AG (Germany) have reached a common understanding to establish a comprehensive partnership, marking an important step towards the future for both car manufacturers. In terms of product portfolio, global distribution, and manufacturing capacities, both companies complement each other.
To support a smooth development of this relationship, Volkswagen will purchase 19.9% of Suzuki's issued shares, and subject to approval of the relevant authorities, the transaction is expected to close in January 2010. Meanwhile, Suzuki intends to invest up to one half of the amount received into shares of Volkswagen. Both companies will form a long-term strategic partnership to support their successful strategies in these challenging times.
In the automotive industry, where globalization and diversification proceed in parallel, both companies will establish a cooperative relationship while respecting each other's independence as a stand-alone entity. Both parties are focused on achieving synergies in the areas of rapidly growing emerging markets as well as in the development and manufacturing of innovative and environment friendly compact cars.
In announcing the partnership, Suzuki and Volkswagen noted, "As demand continues to rise for smaller cars and for powertrains with higher fuel efficiency and lower CO2 output, Volkswagen and Suzuki will offer a compelling solution for customers in emerging markets buying a car for the first time as well as customers in advanced economies seeking to lower their CO2 footprint while still enjoying the freedom of transport offered by an exciting range of cars."