TPO - Manufacturer Car German Volkswagen AG will spend 2.5 billion dollars to buy 20% stake in Suzuki Motor Corp., to utilize the strength of small production car car firm from Japan and Asia dominate the market Asia.
Volkswagen AG CEO Martin Winterkorn (right) with Chairman and CEO Suzuki Motor, Osamu Suzuki, the press conference announced a partnership between the two sides in Tokyo, September 12, 2009. Photo Reuters
Move on the surprise action Monday of this week you chairman Ferdinand Piech’s ambitious Volkswagen. Previously, VW claims spend 5.8 billion to buy 49.9% stake in sports car company Porsche AG.
Right arm of Piech, VW CEO Martin Winterkorn, the hope that deep cooperation with Suzuki will launch pads for the car company, headquartered in Wolfsburg, Germany, usurpation world’s largest car firm Toyota ahead of time .
“If the plan (beyond Toyota) into the earlier (2018), we will be happy,” Winterkorn said hớn open to reporters while sitting next to the CEO for nearly 80 years of Suzuki, Osamu Suzuki, the press conference in Tokyo, Japan.
Osamu Suzuki stressed, will not lead to his company in three decades, under the control of Volkswagen. He replied when asked whether Suzuki by a CEO who could lead Germany in the future: “I do not want you misunderstood. Suzuki did not become the 12th of the Volkswagen brand. I do not need me to people or what to do.
While the market for automotive world is not necessarily turn up after the economic crisis, plus hard habit out production exceeded demand and stricter rules on environmental protection, automobile manufacturers forced to step up cooperation to cost research and development for each side.
By agreement between the cross-investment between the two firms, Suzuki will spend half the proceeds from the sale of shares to VW, about 1.13 billion U.S. dollars, to buy 2.5% of the voting shares of Volkswagen.
Volkswagen, which is a manufacturer of automotive world’s third largest, will support areas that Suzuki is missing, production technology and hybrid electric vehicles.
Winterkorn said: “In collaboration with Suzuki, VW corporations can continue a long step to multiple market segments, particularly the Asian market is booming. In exchange, Suzuki will benefit from our experience I am in the car manufacturing technology is high performance, environmentally friendly and many other advanced technologies.
Volkswagen AG Group, owns 10 other brands including Audi, Skoda, Seat and Porsche, to become the largest automobile producer in the world in 2018. This goal a reality as always if Suzuki is a subsidiary of VW.
In the first half of 2009, Volkswagen sold 3265 million vehicles, also Suzuki 1:15 million units sold. Total output of the two firms reached 4415 million units, far exceeding 3564 million compared with Toyota’s consistent military.
