VW and Suzuki Agree Partnership: The Details

We recently learned that Volkswagen AG and Suzuki Motor Corp have both agreed on their new partnership. The deal will see VW purchase a 19.9 percent stake in Suzuki, they will then use that money to purchase shares in VW. This is seen as a win win situation.

Both companies will gain in this new deal; Suzuki will gain access to VW technology while Suzuki will give Volkswagen a helping hand with its development of small cars. The maker of the Golf and Beatle will then get a foothold in new key areas, such as India and South East Asia.

Autoblog reports that VW have no intention of taking over Suzuki’s outfit, but there are rumors that they could increase their stake to 33 percent, maybe more than that. If that does happen, then the balance of power and decision-making could be changed.

Both companies see this recent move as a way to move forward in a market that has seen troubling times, but hopes to become much easier for them now. These automakers see this as a way to grow in emerging markets, something that is seen as key to success.

For more details on this, read the press release by visiting Autoblog.