Volkswagen wants to gobble up Suzuki: report

Volkswagen AG, Europe's largest carmaker, is expected to make an unsolicited takeover bid for Japan's Suzuki Motors, as it expands investments to emerge world No 1 overtaking General Motors and Toyota.

Volkswagen could make a move to acquire Suzuki, German magazine Der Spiegel reported, citing an unnamed senior manager at VW. "I do not rule out this possibility," the magazine quoted the person as saying on Sunday.

The news comes after a two-year old alliance between Volkswagen AG (VW) and Suzuki Motor Corp headed towards collapse with the Japanese car maker last week moving for a dissolution of the partnership after the German firm accused it of violating their partnership contract by agreeing to buy diesel engines from Italy's Fiat S.p.A. (See: Suzuki ends two-year alliance with VW) 

Wolfsburg, Germany-based Volkswagen, last week, issued a notice to Suzuki for infringement of their agreement relating to the supply of diesel engines produced by another manufacturer, without naming the manufacturer.

The two automakers have in recent months voiced their differences in public with Suzuki's chairman, Osamu Suzuki saying in a July blog post in Japan's leading business daily, Nikkei that Suzuki "had found nothing that it wanted right away" from Volkswagen's portfolio of technologies.

Suzuki's outburst was in retaliation for VW naming Suzuki as its 'associate' in its March annual report, and said it could ''significantly influence financial and operating policy decisions'' at Suzuki.'' The term ''associate'' was used by VW because of its nearly 20-per cent in Suzuki.