VW will buy 19.9% stake in Suzuki


in this case VW is NOT buying a mfg that doesn't have volume products etc. Suzuki has been the number 1 selling small car in Japan for years and is the #1 brand in India. VW wants access to volume cars in the Asian markets, which is the reason for this deal. Osama Suzuki is a fiercly proud man that will not allow what happened with Daimler and Chrysler. He probably understands the business better than anyone at VW, you just don't see it in the US. Suzuki's strength is cars that are, generally speaking, too small for American consumers.

This is a deal that just seems to make a lot of sense for both brands. With GM's exit, Suzuki doesn't have the resources to get into hybrid or other alternate technologies. That is the benefit for Suzuki. It will be interesting to see how far they take the partnership. The cars Suzuki makes in their own plants are very good. The rebadged Daewoo crap went away last year and is gone for good with the end of their GM ties.


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