Suzuki to take stake in Volkswagen, bolster alliance
15 Jan 2010
Japan's Suzuki Motor Corp, which in December 2009 sold a 19.9-per cent stake to Europe's top automaker Volkswagen AG (See: VW acquires 19.9-per cent stake in Suzuki for $2.5 billion), is planning to take a stake in the German company, Japanese media reports quoting Suzuki chief said. </companies/companies_v/Volkswagen/20091209_volkswagen_golf.html>
Suzuki has asked Volkswagen to find shareholders who could sell their Volkswagen shares to the Japanese carmaker, reports said.
"Volkswagen's floating shares are limited. We are having them look for potential sellers," Osamu Suzuki, chairman and chief executive of the company, was quoted as saying in an interview.
Suzuki, Japan's fourth-largest automaker, also plans to procure diesel engines from Volkswagen, Suzuki said, adding that the two companies will also increasingly look at possibilities of a common platform for parts.
The Suzuki-Volkswagen alliance will cover almost every field in the automobile sector, including hybrid, diesel and electric cars, according to Suzuki.
The two companies are also planning to cooperate in developing a small car that would give them a new lead in developing country markets.