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VW buys into Suzuki

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Just heard that VW has bought 19.9% of Suzuki. MS has refused to comment for the moment.

Will we now see the VW diesels progressively replace the FIAT diesels in MS vehicles.

Hope we do not see the VW group (read Skoda) after sales service as well.

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I think it is a global game - GM was a major holder in Suzuki at some point. GM is bust - so VW buys in. Indian market is somewhat small to be that important. VW will be the single largest stakeholder now.

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Its not a hidden fact that India has growing potential and VW obviously wants a part of that delicious pie. What better way to achieve that than by buying stake in the biggest car manufacturer of the country. It also makes setting up the VW brand easier for them.

 

I am a big fan of VW and am happy to see them continuing their Global Domination. Well, sort ofsmiley36.gif!

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WOW, good news. VW is expanding like anything even when the market is just in recovery mode or still in recession in many markets they are willing to invest in other companies.

So are they willing to use the MJD's in their small cars coz VW is not having any small common rail tech or something close to MJD.

@Asethi, i dont think it will help to them to expand their market in India. If i am wrong can you explain this, it will be helpful. Although they can get the contacts of Vendor for parts supply but still for this the stake is not necessary.

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I read somewhere that VW plan to use the MS dealership network for its sales and service operations, like Tata-Fiat. If it happens, VW will get a nation wide network on a platter. However I hope that VW cars do not meet the same fate as that of FIAT India.

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Just imagine if your VW got MSIL service at MSIL costs, how would it be? smiley17.gif. Then why would anyone buy Maruti, hey VW time to bring in the Golf GTi. I read on a US site also that VW's are a 'maintainence nightmare'. If its so in the US just imagine the plight of us poor Indians.

Durango Dude2009-12-10 06:43:37

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I just hope its positive for Suzuki and not other way around, coz i just cant see those Suzuki's cheap quality on VW cars, rather i want to see VW's quality on Suzuki cars. After this stake holding i hope that VW still claims 'its German engineering' and maintains that statement in their products.

Articles from TOI.

Volkswagen to pick 20% in Suzuki

Positive Fallout: Maruti Could Become Global Hub For Supplying Small Cars

New Delhi/Tokyo: Indian car major Maruti

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Suzuki is one of the best in Petrol engine technology. may be we could drive

nexgent (mk5) swift with varities of VW's diesel. and mk6 swift may share
a platform with VW Polo. and don't forget the 7 speed DSG,small hybrid system in New maruti car

 

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Just heard that VW has bought 19.9% of Suzuki. MS has refused to comment for the moment.Will we now see the VW diesels progressively replace the FIAT diesels in MS vehicles.Hope we do not see the VW group (read Skoda) after sales service as well.

We may see VW diesels in MS cars, but I think more importantly VW maybe focusing on synergies with SMC for development of small cars. GM (for whatever it is worth) has GM-DAT for small cars, FIAT is a good small car manufacturer and VW while being no Rabbit at being a small car manufacturer could optimize and leverage small car platforms by associating with Suzuki. Also Suzuki could be 'given' know how to leapfrog into the manufacturing of bigger cars such as the Kizashi. Anyway all these are market driven. VW seems to have the cash for these adventures. Daimler Benz did this with Chrysler and ended up being Daimler, GM flirted with both FIAT and Suzuki and ended up in the red. TATA has J-LR and is in the red, the Chinese are buying up all kinds of car makers and will for sure get into the red with some. These are all games that corporates play. I personally would not read too much into them.

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Means now Suzuki cant access to MJD's? Was the access available to them through GM who had stake in Fiat?

And now even VW have some good small car line-up like Golf, Polo and concept UP! which is much hyped concept and a platform to small car, small MPV, hatch etc. So why to get the platforms from Suzuki although they have many small cars but still. VW should develop their own small cars rather than investing in other companies.

Lets see whats the effect of this stake buy-out on both.

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I think this investment is more for investment sake only and it may not add much to any large-scale-foray of VW into Indian market. Thanks to the cheaper manufacturing costs in India, our small cars (mostly from Suzuki and Hyundai) are really cheap when compared to similar sized European/American small cars. Therefore, I think, that VW may source cars, sub-assemblies and parts from Suzuki (more so from Maruti Suzuki) for their global consumption. This investment will ease VW efforts towards that. And, may not bring any new products into Indian market. Because, any such experiments will result in costly cars and costly cars are difficult to sell in our market. This, both Suzuki and VW knows very well by now.

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Volkswagen at present has a minimum presence in India with just about two per cent market share in the passenger car segment. But it recently announced plans to ramp up presence here by selling about 100,000 units by 2014.

Europe is shifting to compact and small cars due to rising petrol costs as well as concerns of climate change. Suzuki has the expertise to make small cars, Volkswagen does not. The German company has the expertise in environment friendly technology and has invested large sums. Combining the two will reduce cost of making new cars. Volkswagen, which has a stronger dealership network in Europe compared to Suzuki, could source small cars from India and sell them under its own brand name,

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Europe is shifting to compact and small cars due to rising petrol costs as well as concerns of climate change. Suzuki has the expertise to make small cars, Volkswagen does not. The German company has the expertise in environment friendly technology and has invested large sums. Combining the two will reduce cost of making new cars. Volkswagen, which has a stronger dealership network in Europe compared to Suzuki, could source small cars from India and sell them under its own brand name,

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REPORT: Suzuki CEO indicates joint projects with VW to start in January

by Jeremy Korzeniewski (RSS feed) on Dec 17th, 2009 at 9:00AM

Volkswagen and Suzuki won't waste anytime at all in getting started on their assorted joint projects. Well, unless you count the holidays, which we'll let slide. At the launch of the new Suzuki Alto, CEO Osama Suzuki told reporters that the newly tied-at-the-hip automakers will begin "Actual, detailed execution

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