Latest Car News in India

Monday, October 24, 2011

By Pranjal Gera

Suzuki asks Volkswagen to return its 20% share; VW takes matter with ease

An agreement was signed between Volkswagen Group and Suzuki Motor Corporation. As per the alliance it was agreed that the Germany based auto giant will provide the technological aspect to Suzuki whereas the Japanese subsidiary in India will grant them a stake of 20 percent in their company. Now, some days back Suzuki has forwarded an ultimatum to Volkswagen informing them either to follow the agreement or else return the 20 percent share to Suzuki.

One of the world’s largest automobile manufacturers, Volkswagen Group, has responded that they are still in the alliance and will abide the same. About the stake in question, Mr. Hans Demant; a Volkswagen spokesperson said that the agreement is still in the run, no chances of dissolution and hence no backing on the 20 percent share of Suzuki. With this optimistic attitude of Volkswagen it seems like the company is in no mood to return the 20 percent share holding and with the mutual understand among the two, some constructive is ought to come out.

German automaker’s supple stance on this matter indicates that the group is taking this 20 percent share holding sincerely, eyeing the future of their vehicles in India; one of the world’s fastest prospering auto markets. The approach on Suzuki’s side seems aggressive as the company is pleased with the use of advanced diesel power-train technology by Fiat; the Italian automobile manufacturer.

Both the companies are immensely successful in India with Suzuki ties-up with Maruti and sells Swift, DZire, sedan SX4, A-Star, Alto and Wagon R. Whereas, Volkswagen retails Vento, Polo, Jetta and Passat in the country.

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